Recent Court Rulings

Association Not Liable for Member’s Slip-and-Fall Injury

Facts: A member sued his condo association and the management company for injuries he suffered when he slipped on an ice patch. The association had a contract with a snow removal service. The member alleged that because of the negligent removal of snow, several large patches of ice accumulated on the walkway. The trial court dismissed the member's lawsuit because under Illinois law, anyone in charge of residential property is not liable for any personal injuries allegedly caused by a sidewalk's snowy or icy condition unless the person's acts amount to clear wrongdoing.

Association’s Arbitration Procedure Ruled Valid

Facts: A member sued to challenge her association's decision to eliminate street parking. The association asked the court to require arbitration and to postpone the lawsuit until the matter could be settled through arbitration. The trial court denied the association's request, finding that the association's arbitration provision in its governing documents was unenforceable. The association appealed.

Ruling: An Ohio appeals court reversed the trial court's decision.

Member Can Transfer Ownership of Home to Son

Facts: An elderly member transferred ownership of her home to a trust that she had set up. Under the terms of the trust, the ownership of the home would transfer to the member's son at the fifth anniversary of the trust's establishment or when the member died, whichever occurred first.

Association Can Amend Governing Documents

Facts: A member sued a condo association for discrimination under the Fair Housing Act. The dispute started when the member challenged an amendment to the community's governing documents limiting the number of times a member could lease a unit to three times. The member asked the trial court to prevent the association from implementing the amendment before the actual trial begins. The member argued that this amendment would have a racially discriminatory impact on potential renters.

Ruling: An Indiana district court denied the member's request.

Member Can Use Garage as Recreation Room

Facts: An association sued a member for violating community building restrictions. The member converted his garage to a recreation room without board approval and in violation of the governing documents. The governing documents provide that all homes are to be used for “none other than single family residential purposes with usual and appropriate outbuildings and a private garage.”

Governing Documents Allow Assessments for Legal Fees

Facts: A member submitted a building plan to the association's architectural review committee. The committee denied approval of the building plan because it did not comply with the setback requirements. After numerous attempts to amend the community's setback requirements, the member filed a discrimination claim, alleging that the association had discriminated against him on the basis of his race. The association hired a defense attorney, incurring $4,331.99 in legal bills.

Insurer Must Cover Association’s Claim

Facts: A condo association sued an insurer for failing to compensate the association for windstorm damage caused by a hurricane. The association had purchased a commercial residential insurance policy that provided coverage for loss or damage to the condominium building.

Member Can Build Shed on Property

Facts: An association member constructed a shed on his property. The shed was approved by the town's building inspector and received a certificate of compliance. The association sent the member a notice stating that the shed violated certain provisions of the governing documents. The member sued the association, claiming that the board lacked the authority to issue him a violation notice.

Ruling: A New York court ruled for the member.

Association Can Amend Governing Documents

Facts: Worried about short-term rentals in the community, an association's board decided to amend the governing documents to restrict rentals to 30 days or more. The board sent out ballots, and 132 of the 168 ballots were returned. The proposed amendment failed because 36 owners abstained from voting, and of those who voted, the amendment received only 59 percent of the vote.

Developer May Be Liable for Community Defects

Facts: An association sued the builder of the condominium building for breaching its implied warranty of habitability—that is, its guarantee that the building is fit to be lived in. The association presented evidence of leaks into the units, inadequately sloped decks, loose railings, improperly installed windows, and other structural problems.