Recent Court Rulings

Association Not Responsible for Damage to Condo Unit’s Interior

Facts: Two condominium association members discovered physical damage to their unit. One of the two thermostats within the unit malfunctioned and failed to register a temperature beyond 55 degrees. This caused the heat to run constantly at a high temperature for approximately one month. The continuous heat resulted in cracks in the dry wall, damage to the ceilings and woodwork, and damage to the furniture and floors. The second thermostat, located upstairs, was damaged by the consistently high temperatures in the unit.

Association-Authorized Parties Could Sue for Delinquencies

Facts: A condominium member owed nearly $8,000 in delinquencies and attorney’s fees. After he refused to pay, the association’s management company and attorney sued him on behalf of the association. A trial court ruled in favor of the association. The member appealed.

Decision: A Missouri appeals court upheld the trial court’s decision.

Snow Removal Rules in Internal Manual Didn’t Create Duty to Resident

Facts: A condominium member fell and injured herself on ice and snow on the sidewalk outside of her building. She sued the association and management company for negligence. They asked the trial court for a judgment in their favor without a trial. They prevailed, and the member appealed.

Decision: An Illinois appeals court upheld the trial court’s decision.

Manager Prevailed in Defamation, Negligence Case

Facts: Several members in a condo association posted flyers in common areas, claiming that the property manager was stealing and mismanaging association funds.

The manager sued the members for defamation. The members asked a trial court to dismiss her claims. The trial court denied the request. The members appealed.

Decision: A Texas appeals court affirmed in part and reversed in part.

Association Wasn’t ‘Debt Collector’ for Member’s Late Fees

Facts: A condominium member signed a rent-to-own contract. The purpose of the contract was for the renter to eventually own the unit. The member asserted that the renter was entirely responsible for paying condo assessments and fees. Under the governing documents, a member with a rent-to-own contract was, in fact, a “co-owner” with the renter and, therefore, jointly and severally liable for costs.

Board Had Broad Powers to Adopt Rent Restriction Rules

Facts: Several planned community absentee members who rented their homes to short-term vacationers sued the association over an annual fee imposed on owners who rented their homes and a mandatory garbage collection fee adopted by the board of directors. The association filed a cross-claim against the owners. A trial court ruled in favor of the association. The owners appealed.

Decision: A California appeals court upheld the trial court’s decision in favor of the association.

Association Discriminated Against Blind Homeowner

Facts: A homeowner who served on her community association’s board of directors sued the association for civil rights violations and violations of the Fair Housing Act Amendments (FHAA) and state laws. The homeowner was legally blind and had requested that the board provide her with versions of the documents that other members received, but in a readable format for blind individuals. The board refused to reasonably accommodate her disability. Eventually, the homeowner resigned from the board.

Asking Renter to Abide by Noise Policy Wasn’t ‘Harassment’

Facts: A neighbor of a renter in a condominium building complained about excessive noise coming from the renter’s unit. The association neither sided with nor against the renter, but it did attempt to mediate the dispute by informing the renter of the building’s noise standards several times.

Statute of Limitations Precluded Collection of Fines

Facts: A homeowner made improvements to his community’s common area that weren’t approved by the association. The homeowner was fined. He later declared bankruptcy. The association filed a “proof of claim” against the homeowner. The homeowner objected to the claim. A California bankruptcy court ruled in favor of the homeowner after it determined that the association’s claim was time barred under the state’s statute of limitations for that type of claim. The association appealed.

Homeowner Was ‘Jointly and Severally’ Liable with Renter to Pay Assessment

Facts: Twenty-eight of the more than 1,000 units in a community were purchased by one homeowner. The homeowner leased the units to renters. The homeowner claimed that the renters were responsible for paying the monthly assessments for their respective units. For several years, monthly assessments weren’t submitted by the majority of the homeowner’s units. The monthly assessments were $35 when the homeowner purchased his units; they were increased to $45 and then $50 by the board of directors over the course of several years.