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Recent Cases in Community Association Law
Law Reporter provides a brief review of key court decisions throughout the U.S. each
month. These reviews give the reader an idea of the types of legal issues
community associations face and how the courts rule on them. Case reviews are
illustrations only and should not be applied to other situations. For further
information, full court rulings can usually be found online by copying the case
citation into your web browser. In addition, the College of Community
Association Lawyers prepares a case law update annually. Summaries of these
cases along with their references, case numbers, dates, and other data are available online.
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Individual Condominium Owners Have Right to Vote on Master Association Bylaws
Leo v.
Diana Court Owners Association, No. 49574-1-II (Wash. Ct. App. Oct. 24, 2017)
Assessments: The Court of Appeals of Washington held that a master
association’s bylaws had to be approved by a majority of the condominium
association members since the bylaws provided for the condominium’s
administration.
Vista Village Recreation and Maintenance Association (master
association) managed five condominiums in the Vista Village community in
Thurston County, Wash. Each condominium also had its own condominium
association.
Donald Leo owned a unit in the Diana Court Condominium,
which was governed by Diana Court Owners Association (DCOA). The Diana Court
declaration of covenants, conditions and restrictions (declaration) required
all Diana Court owners to be members of both the master association and DCOA.
The declaration also obligated each owner to pay assessments to the master
association according to the master association’s bylaws.
In 2015, amendments to the master association’s bylaws
(amended bylaws) were approved by the boards of each condominium association
except DCOA. The amended bylaws assigned carports to the units as limited
common area and specified that each owner must maintain and repair, at the
owner’s expense, the limited common areas serving the unit. The master
association then sought to repair the gutters on Leo’s carport and to charge
him for the repair costs.
Leo sued the master association and DCOA, asserting that the
master association was not authorized to charge him for limited common area
repairs. Leo argued that the amended bylaws were invalid because they were not
approved by the Diana Court owners. The trial court entered judgment in favor
of the master association and DCOA. Leo appealed.
The declaration provided that bylaws for the administration
of Diana Court and DCOA were to be adopted by a majority of the Diana Court
owners. The appeals court determined that the master association’s bylaws
explicitly administered Diana Court. The master association and DCOA argued
that the owner voting provision did not apply to the master association’s
bylaws since the declaration specifically provided that owners were subject to
the master association’s bylaws in addition to DCOA’s governing documents.
The appeals court disagreed, finding that the two provisions
had to be read together. It concluded that the master association’s bylaws that
administered Diana Court had to be adopted by a majority of its owners to be
binding against them. Accordingly, the amended bylaws were invalid with respect
to Diana Court.
Leo also argued that the trial court erred in determining that
the master association was authorized to assess limited common area repair
costs only on the owners benefited by the limited common area. Since Diana
Court was established in 1975, it was subject to the Washington Horizontal
Property Regimes Act (HPRA), which governs condominiums created before July
1990. However, some provisions of the Washington Condominium Act (WCA),
governing newer condominiums, also apply to older condominiums.
HPRA provides that condominium common expenses are to be
charged against the owners in accordance with their respective percentage
interests in the common areas. WCA states that, to the extent required by the
declaration, any common expenses benefitting fewer than all units must be
assessed exclusively against the units benefitted.
While the amended bylaws authorized the master association
to impose assessments against individual owners for limited common area
maintenance and repairs, the declaration did not provide for limited common
area assessments. Therefore, the appeals court held that HPRA’s general rule
governed how limited common area expenses were to be charged against the
owners. It found the trial court erred in denying summary judgment to Leo on
the assessment issue.
Accordingly, the appeals court vacated the trial court’s
judgment in favor of the master association and DCOA, awarded Leo attorneys’
fees as the prevailing party, and remanded the case for further proceedings. ©2017 Community Associations Institute. All rights reserved.
Reproduction and redistribution in any form is strictly prohibited.
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Attempt to Clarify Restriction Causes More Confusion
Buysse v. Jones,
No. COA17-419 (N.C. Ct. App. Nov.
21, 2017)
Covenants Enforcement: The Court of Appeals of North Carolina held that
the original developer’s intent should guide the interpretation of ambiguous
building restrictions.
The Gimghoul Neighborhood in Chapel Hill, N.C., was
developed in 1923. The subdivision plat showed a setback line and noted that
the building line was 40 feet from Gimghoul Road. However, the plat did not
indicate the road’s width or a specific right-of-way. The original lot deeds
restricted erecting buildings “nearer any street than the building line”
located 40 feet from Gimghoul Road’s northern boundary.
In 1926, Mr. and Mrs. Sterling Stoudemire purchased Lot 7. In
1950, there was an effort to modify the original deed restrictions by a
separate set of covenants. One of the proposed changes would have changed the
setback provision to prohibit buildings “nearer any street than the building
line” shown on the plat, but in no case less than 40 feet from the front lot
line. However, the 1950 covenants were neither signed by the lot owners nor
recorded.
In the 1980s, the Gimghoul Homeowners Association
(association) sought to modify the original deed restrictions by a declaration
of covenants, conditions, and restrictions (declaration). The declaration
prohibited erecting buildings nearer than 40 feet from the street. The
declaration stated that its intent was to preserve the original deed
restrictions’ purpose in conjunction with the 1950 proposed amendments. The
declaration was signed by a majority of the lot owners, including the
Stoudemires, and recorded.
Adam and Susan Jones purchased Lot 7 in 2006. In 2013, the
Joneses submitted plans to the city for a front porch addition. In 2014, the
Historic District Commission issued a certificate of appropriateness. The
Chapel Hill Planning Department also issued a zoning compliance permit and a
building permit.
However, the association repeatedly warned the Joneses that
the porch would violate the 40-foot setback requirement and offered to assist
with remedying the problem. Undeterred, the Joneses began construction. The
porch extended to 33 feet from their property line, which was about 43 feet
from the Gimghoul Road’s pavement edge and 83 feet from Gimghoul Road’s
northern boundary.
In August 2014, lot owners Bob Buysse, Joan Guilkey, and
Mike Miles (collectively, plaintiffs) sued the Joneses for violating the
setback requirement. Finding that the porch encroached into a 40-foot setback
from the southern edge of Gimghoul Road’s right-of-way, the trial court ordered
that the porch be removed. The Joneses appealed.
Although one of the declaration’s stated purposes was to
remove ambiguities in the original deed restrictions, the appeals court found
the declaration actually created more ambiguity by using the generic term “street”
without defining it. The appeals court determined that “street” could be
interpreted to either include or exclude sidewalks.
When interpreting an ambiguous word, the appeals court
stated that all surrounding circumstances may be considered, including those
existing when the document was drafted. Therefore, the appeals court examined
the original plat and deed restrictions for the original developer’s intent.
Although the original plat showed a setback line, it could
not be precisely located since the plat showed no defined boundaries for
Gimghoul Road. However, the appeals court determined that the deed restrictions
clearly and unambiguously stated that the setback line was to be measured 40
feet from Gimghoul Road’s northern boundary.
The trial court should not have attempted to resolve the
inconsistencies among the deed restrictions, the 1923 plat, the 1950 proposed
changes, and the 1984 declaration. Rather, where the original developer’s intent
was clear, the trial court was obligated to interpret the restrictions narrowly
and in accordance with that original intent.
Therefore, the trial court erred in determining that the
setback line should be measured from the southern side of Gimghoul Road. Since
the evidence clearly showed that the porch was located more than 40 feet from
Gimghoul Road’s northern boundary, the appeals court reversed the trial court’s
judgment and remanded the case for judgment to be entered in the Jones’ favor. ©2017 Community Associations Institute. All rights reserved.
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Association’s Verbal Denial of Construction Request is Proper
Forest Hills Improvement Association, Inc. v. Flaim, No. 09-15-00478-CV (Tex. App. Nov. 9, 2017)
Covenants Enforcement: The Texas Court of Appeals held that an
association’s verbal denial of an architectural request was sufficient because
the restrictions did not require a written response, and the association’s
failure to enforce one restriction did not waive its right to enforce all
restrictions.
Forest Hills Improvement Association, Inc. (association)
governed the Forest Hills Subdivision in Jasper County, Tex. Richard Flaim
owned a lot in the subdivision.
The subdivision deed restrictions required that all new
construction be approved by the association. If the association did not
disapprove the plans within 30 days of submission, the owner could begin
construction in accordance with the deed restrictions.
The deed restrictions also provided that no building could
be located within 10 feet of the rear lot line. The restrictions specifically
allowed the association to grant variances to the setback requirement, but did
not specify other variances.
In 2001, Flaim obtained association approval to install a
concrete parking pad about two feet from his rear lot line. Some years later,
Flaim sought permission to construct a carport over the parking pad. He first
approached Eddie Bass, who was a board member as well as a general contractor.
Bass said he could not build the carport because it would violate the setback
restriction.
Flaim submitted four written requests to the association
between August 2011 and May 2013. The association verbally denied each request;
but, in May 2013, the association’s lawyer informed Flaim in writing the
request was denied. In June 2013, Flaim constructed the carport anyway.
The following month, the association sued Flaim, seeking a
declaratory judgment (judgment without a trial based on undisputed facts) that
Flaim violated the setback requirement and an order to remove the carport. The
trial court concluded that the association had waived the approval requirement
by failing to respond to Flaim’s repeated requests, thus allowing Flaim to
construct the carport in accordance with the plans submitted.
The trial court also determined that the association had
waived its enforcement rights by selectively enforcing the deed restrictions,
particularly violations by board members. The association appealed.
The appeals court disagreed with the trial court’s
conclusion because the deed restrictions did not specifically require the
association to respond to plan submissions in writing. The appeals court
declined to read more into the deed restrictions than the actual text, and it
concluded that the deed restrictions allowed the association to give a verbal
response.
Since Flaim admitted that the association verbally
responded, there was no evidence to support the trial court’s conclusion that
the association failed to respond. The appeals court further found that, even
if the association had never responded to Flaim’s request, the carport could not
be authorized by default. The deed restrictions specifically provided that, if
the association failed to respond within 30 days, construction could proceed in accordance with the restrictions.
Since the carport violated the explicit setback requirement, it was not in
accordance with the restrictions.
To prove waiver of a deed restriction, a violation must be
so substantial that the average person would reasonably conclude that the
restriction had been abandoned. Factors to consider in analyzing waiver include
the quantity and severity of the violations, prior enforcement actions, and
whether it is still possible to realize to a substantial degree the
restriction’s intended benefit.
Flaim had shown that other deed restrictions had never been
enforced, such as Bass violating the prohibition on commercial operations by
conducting business out of his home. However, there was no evidence that the
association had failed to enforce the setback violation. In fact, the
association had pursued setback violations against other owners. The appeals
court found the other violations were distinct and separate from the setback
requirement. As such, the appeals court held that the association did not waive
its right to enforce the setback requirement.
The appeals court reversed the trial court’s judgment. The
case was remanded with instructions for the trial court to enter declaratory
judgment in the association’s favor, to grant an appropriate remedy to the
association, and to consider the association’s claim for attorney’s fees. ©2017 Community Associations Institute. All rights reserved.
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Ground Lease Development Restrictions Limit Later Development
The Waterview Towers Condominium Association, Inc. v. City of West Palm Beach, No.
4D16-2858 (Fla. Dist. Ct. App. Nov. 1,
2017)
Development Rights: The Florida District Court of Appeal held that
leasehold condominium unit owners could enforce development restrictions in the
ground lease since the lease was part of the condominium governing documents.
In 1968, West Palm Beach Marina, Inc. (Marina) entered into
a 99-year ground lease for a waterfront parcel with the City of West Palm
Beach, Fla. (city). The city and the Marina agreed that the entire parcel would
be converted to a leasehold condominium and submitted to the Florida
Condominium Act (act).
The property was divided into a residential unit (R1) and
two commercial units (C1 and C2). The lease provided that the commercial
portion would include a marina with related facilities, surface parking, and a
commercial building not exceeding four stories. The lease further provided that
the parcel’s development must retain the waterfront character specified in a
site plan approved by the city. The site plan approved by the city specified
that a building not exceeding four stories or 20,000 square feet could be built
on C2.
A declaration of condominium (declaration) established the
condominium regime, and The Waterview Towers Condominium Association, Inc.
(association) was organized to govern it. R1 was developed as a residential
tower containing 132 units, and C1 was developed as a marina. C2 was not
developed initially, but the declaration specified that a commercial building
not exceeding 75 feet high could be built on C2. C2 was located between the
residential tower and the waterfront.
In 2007, Leisure Resorts, LLC (Leisure Resorts) purchased
the leasehold rights in C1 and C2. In 2009, the city and Leisure Resorts
entered into a development agreement approving plans for a parking garage and
hotel on C2. In the development agreement, the city expressly waived its right
to enforce the lease’s view restrictions.
Leisure Resorts assigned its interests in C2 to Palm Harbor
Hotel, LLC (Hotel). In 2013, the Hotel applied for rezoning of C2 to permit an
eight-story hotel with an attached three-story parking garage. The city
approved the rezoning.
The association and two residential unit owners
(collectively, plaintiffs) sued the city and the Hotel (collectively,
defendants), seeking a determination that the association and the unit owners
had the right to enforce the lease’s development restrictions on C2.
The trial court held that only the city had the right to
enforce the lease restrictions, and the city could waive those restrictions.
The trial court further held that the plaintiffs could enforce only the
declaration’s restrictions, and they had no approval rights over commercial
unit development. The plaintiffs appealed.
The appeals court held that the defendants were bound by the
declaration because both the city and the Hotel’s predecessor agreed in the
lease that the entire property would be a leasehold condominium submitted to
the act. The appeals court disagreed with the defendants’ assertion that the
residential unit owners lacked standing to enforce the declaration against the
commercial unit owners. In some cases, the declaration distinguished between
residential and commercial unit owners,
but not in the remedies section. The declaration clearly provided that the
association or any unit owner could
bring an action to enforce a condominium document violation, which specifically
included the lease.
The appeals court further held that the residential unit
owners could enforce the lease provisions as part of the lease’s general
building scheme that contemplated a mixed-use development where all unit owners
would benefit from the presence of the marina, the view, and the unique
waterfront character.
The lease could also be enforced by the residential unit
owners because its restrictions were imposed for the benefit of all owners.
Since the lease imposed the restrictions on the entire parcel, every unit was
burdened and benefitted by the restrictions. Moreover, the act provided that an
association may institute a suit on behalf of all owners concerning matters of
common interest to most or all owners. As such, the trial court erred in ruling
that C2’s development was not limited to one four-story building containing a
maximum of 20,000 square feet.
The plaintiffs argued that only one commercial building
could be built on C2, while the defendants asserted that a commercial building
and a separate parking facility could be located on C2. The appeals court found
that the condominium documents did not limit the type of parking. The lease
referred to surface parking, while the declaration referred to a parking
facility. Finding the parking restriction ambiguous, the appeals court held
that restriction could not be interpreted to limit the parking in C2 only to
surface parking.
Accordingly, the trial court’s judgment was reversed, and
the case was remanded for further proceedings. ©2017 Community Associations Institute. All rights reserved.
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Common Development Plan Did Not Bind Undeveloped Property
Lutzak v.
Phoenix American Development Partners, L.P., No.
M2015-02117-COA-R3-CV (Tenn. Ct. App.
Oct. 18, 2017)
Development Rights: The Tennessee Court of Appeals held that a deed to
undeveloped property referencing the declaration was insufficient to subject
the property to the declaration’s terms since the declaration specified not
only the property it encumbered but also the sole method for subjecting
additional property to the declaration.
Saturn I Land Partners (Saturn) contracted to sell Tract
4.0, a 168-acre parcel, in Williamson County, Tenn. The purchaser filed a
master development plan with the county to create the Spring Hill Place
subdivision including 376 residential lots in 13 sections.
Spring Hill Place Land Partners Limited Partnership (Spring
Hill Partners) assumed the purchase contract and recorded a declaration of
covenants, conditions, and restrictions for Spring Hill Place (declaration). It
purchased Tract 4.0 from Saturn in phases. Each deed from Saturn to Spring Hill
Partners specified that the conveyance was subject to the declaration. As
Spring Hill Partners developed each phase, it recorded a plat noting that the
lots were subject to the declaration.
Spring Hill Partners defaulted on its development loan, and
the bank began foreclosure proceedings. At that point, Spring Hill Partners
owned 43 platted lots and 62 acres of undeveloped, unplatted land.
In May 2010, the Dianne Elizabeth Lutzak Family Revocable
Trust (Trust) agreed to buy the defaulted loan to stop the foreclosure
proceedings. Spring Hill Partners agreed to submit the remaining platted lots
to the declaration and to convey the unplatted land to the Trust. The deed to
the Trust did not reference the declaration. Spring Hill Partners retained a
right of first refusal to repurchase the unplatted land for five years.
In January 2014, the Trust applied to the county for
approval of a subdivision on unplatted land. Spring Hill Partners and owners in
the Spring Hill Place subdivision objected to the proposed restrictive
covenants for the new subdivision because they differed from those in the
declaration.
Dianne Lutzak, as trustee of the Trust, filed suit against
Spring Hill Partners and Spring Hill Place Homeowners’ Association, Inc.
(collectively, the defendants), seeking a ruling that the declaration did not
apply to the unplatted land. In 2015, Spring Hill Partners assigned its rights
to Phoenix American Development Partners L.P., which was substituted for Spring
Hill Partners in the case.
The trial court rejected the defendants’ argument that the
title documents to the unplatted land subjected it to the declaration. It also
refused to impose restrictive covenants on the unplatted land based on the
common development plan doctrine, finding that the doctrine did not apply
because Spring Hill Partners expressly retained the right to deviate from the
plan by adding or removing property in the Spring Hill subdivision. The
defendants appealed.
The appeals court stated that Saturn’s intent, as the
original grantor, must be determined from the words of the deeds as a whole and
from the surrounding circumstances. The three deeds conveying Tract 4.0 from
Saturn to Spring Hill Partners specified that the conveyance was subject to the
declaration.
However, the appeals court stated that to interpret the
deeds as subjecting the unplatted land to the declaration would ignore the
declaration’s clear terms. The declaration specified that the property it
encumbered was described more particularly on Exhibit A, and additional
property could be submitted to the declaration’s terms by recording a
supplemental declaration.
The unplatted land was not included in either the original
declaration exhibit or a supplemental declaration. The appeals court determined
that the declaration specified, not only the property encumbered by it, but
also the sole method for subjecting more property to it. Thus, the unplatted
land was not subject to the declaration by its express terms.
Restrictive covenants on land use may be implied under the
common development plan doctrine. When a developer sells land with restrictions
designed to implement a common development plan, it implies to purchasers that
all land in the plan will also be subject to the restrictive covenants. If a
common plan has been established, and some lots are sold with restrictions and
some without, equity will impose the restrictions on the unrestricted lots to
protect purchasers who reasonably relied on the developer’s representations.
The appeals court found that the Spring Hill owners did not
reasonably rely on representations by Spring Hill Partners that the unplatted
land would be submitted to the declaration. In the declaration, Spring Hill
Partners reserved the right to amend the master plan, and it did so numerous
times over the years. The common development plan doctrine has no application
when the developer has expressly retained the right to deviate from the plan.
Accordingly, the trial court’s judgment was affirmed. ©2017 Community Associations Institute. All rights reserved.
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Association Amends Declaration Validly; Eliminates Mandatory Club Membership
Silver Beach Towners Property Owners Association, Inc. v. Silver Beach Investments of Destin,
L.C., No. 1D16-4555 (Fla.
Dist. Ct. App. Oct. 18, 2017)
Documents: The Florida District Court of Appeal held that mandatory
membership in an off-site, for-profit private club did not constitute a unit
appurtenance under the Florida Condominium Act.
Silver Beach Towers Property Owners Association, Inc. was
the master association governing two condominiums in Destin, Fla. Each
condominium had its own condominium association. The two condominium
associations were the master association’s members; individual unit owners were
only members of their respective condominium associations.
The declaration of condominium (declaration) obligated each
owner to be a member of The Club at Silver Shells, Inc. (club), a non-equity
club located about one mile from the condominium. The master association
collected club dues and other fees from the owners and paid them to the club.
The club had the right to change the dues and fees without notice.
In 2008, Silver Beach Investments of Destin, L.C.
(developer) turned over control of the master association to the two condominium
associations. In accordance with the declaration, each condominium association
appointed one director to the master association’s board.
In May 2010, a declaration amendment eliminating the
mandatory club membership was adopted by the unanimous agreement of both master
association directors. In May 2012, the developer and the club filed suit
against the master association and both condominium associations, seeking to
recover club dues and fees under the original declaration.
The trial court ruled that the declaration amendment was
invalid because the declaration specified that club memberships were
appurtenances to the units (rights belonging to the units and used for their
benefit). The Florida Condominium Act (act) provides that material changes to
unit appurtenances must be approved by all unit owners. Since there was no
unanimous approval by the individual owners, the trial court ruled in the favor
of the developer and the club. The associations appealed.
The appeals court found that the trial court misapplied the
law. The appeals court determined that merely stating that club membership was
appurtenant to each unit was insufficient to make it a legal appurtenance. The
appeals court also was not sympathetic to the club arrangement. The declaration
obligated each owner to be a member of an off-site, for-profit club in which
neither the owners nor the associations had any ownership or management rights.
The club was not exclusively for the owners; it could offer
memberships to third-parties. The club could terminate an owner’s club
membership without cause or recourse. The club property and facilities did not
constitute common elements or condominium property under the act. Finding that
the club was not owned, controlled, or even affected by the owners or the
associations, the appeals court held that the club memberships were not unit
appurtenances within the act’s meaning.
Further, the appeals court held that, even if the club
memberships were unit appurtenances, the act’s approval requirements still did
not invalidate the amendment. The act provides that unanimous owner approval is
required to modify unit appurtenances unless
otherwise provided in the original declaration. The appeals court found
that the declaration provided otherwise.
The declaration stated it could be amended with the approval
of master association members holding two-thirds of the master association
votes. The developer’s consent was only required prior to turnover. There was
no evidence that the two master association directors were not authorized to
cast the votes of their respective condominium associations. Thus, the
amendment was validly adopted.
Accordingly, the trial court’s judgment was reversed. The
case was remanded for the trial court to determine the dues owed to the club
prior to the declaration amendment’s effective date. ©2017 Community Associations Institute. All rights reserved.
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Developer’s Easement Terminated by Association
Majestic Oaks Homeowners Association, Inc. v. Majestic Oaks Farms, Inc., No.
2016-SC-00213-DG (Ky. Sep. 28, 2017)
Documents: The Supreme Court of Kentucky held that an association could
amend its declaration to remove the developer’s easement since the developer’s
consent was not required for an amendment.
Majestic Oaks Homeowners Association, Inc. (association)
governed Majestic Oaks Equestrian Estates in Shelby County, Ken. The
declaration of covenants, conditions, and restrictions (declaration) gave Majestic
Oaks Farms, Inc. (developer) an easement to use the community’s private roads
as long as the developer owned a lot or a portion of the property subject to
the declaration.
The declaration indicated that the initial property was
intended to be part of a larger development, and it gave the developer the
right to subject additional property to the declaration. By 2000, the developer
had expanded the community to include three phases. The phase three plat
identified adjacent property intended for future development of phases four and
five. By 2006, the developer had sold all property subject to the declaration
except phase four, which it still owned.
The association proposed a declaration amendment to remove
the developer’s access easement. The declaration provided that it could be
amended by a vote of 67 percent of the association’s members. The amendment
passed, and the association sued the developer to stop its continued use of the
terminated easement.
Both sides moved for summary judgment (judgment without a
trial based on undisputed facts). The trial court ruled in the developer’s
favor, and the association appealed.
Since the easement was contractually created by the
declaration, the contract also defined the parties’ rights as well as the extent
of the easement. As the declaration’s drafter (or the party responsible for its
drafting), the developer’s retained rights were confined to the precise
language it chose in establishing the easement.
The declaration clearly provided that “these covenants and
restrictions” could be cancelled, altered, or amended by 67 percent of the
association’s members, but the developer retained the sole right to appoint the
architectural approval committee until the last lot was sold. Since the
developer no longer owned property subject to the declaration, it was not an
association member and had no voting rights.
However, the developer argued that the amendment authority
was confined to the declaration’s restrictions, which did not include
easements. The appeals court disagreed since the amendment authority
specifically referenced covenants and restrictions. Looking to Black’s Law Dictionary, the appeals
court determined that a covenant is an agreement that property will be used in
a certain way. Since an easement allows property to be used for a certain
purpose, the appeals court concluded that an easement constituted a covenant.
Further, the amendment language specified that the developer
retained the sole right to appoint the architectural approval committee until
the last lot was sold. The appeals court determined that, if the developer had
intended to limit the amendment process only to restrictions, it would not have
addressed the developer’s rights in the same sentence.
While the appeals court did not find the amendment language
ambiguous, it stated that ambiguity would be construed against the developer,
as the declaration’s drafter. As such, the association clearly had the
authority to amend the declaration to remove the developer’s easement rights.
The summary judgment grant in the developer’s favor was
reversed, and the case was remanded with instructions that summary judgment be
entered in the association’s favor. ©2017 Community Associations Institute. All rights reserved.
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Association’s Suit Against Owner Unrelated to Owner’s Protests
Presidio Community Association v. Dulgerian, No. G053995 (Cal. Ct. App. Nov. 13, 2017)
State and Local Legislation and Regulations: The Court of Appeal of
California held that an owner’s preventing the association’s landscaper from
completing a project the owner opposed was not free speech protected by
California’s anti-SLAPP statute.
Presidio Community Association (association) governed the
Presidio community in Orange County, Cal. Greg Dulgerian and Melanie Belger
owned homes in the community.
Each home’s front yard was planted with grass that was
maintained by the association. The association considered replacing the grass
with drought-resistant plants to save money on water during droughts and to
qualify for rebates from the local water district. Greg Dulgerian’s wife and
Belger strongly opposed the proposal and protested to the association’s board
and manager through emails, letters, and appearances at board meetings.
Nevertheless, the association proceeded with the project.
When the landscape contractors arrived to undertake the
work, Mrs. Dulgerian and Belger ordered the contractors off their properties.
Belger also threatened to call the police.
The association completed the grass replacement project
except Dulgerian’s and Belger’s front yards. It then sued Dulgerian and Belger
(collectively, the owners) for declaratory judgment (judicial determination of
the parties’ legal rights), nuisance, and an injunction to prevent the owners
from interfering with the landscapers. The association alleged that it would
replace grass only in nonprivate yard areas, which were under the association’s
control.
The owners moved to dismiss the case under California’s
anti-SLAPP (strategic lawsuit against public participation) statute. The owners
asserted that the association was suing them for protesting the project, which
they claimed was speech protected by the anti-SLAPP statute. The trial court
denied the motion, finding that the conduct alleged in the association’s
complaint was not protected conduct. The owners appealed.
The anti-SLAPP statute’s purpose is to address lawsuits
intended to stymie the rights of free speech and to petition for grievances to
be rectified. The anti-SLAPP statute applies when the lawsuit arises from a
protected activity. The chief consideration is whether the lawsuit is based on the defendant’s protected free
speech or petitioning activity.
The owners asserted that the association’s claims arose from
two kinds of protected activity: public
statements made regarding an issue of public interest and conduct in
furtherance of the right of free speech. The defendant’s action must itself have been an act in furtherance
of the right of free speech. The fact that the lawsuit was filed after the
owners exercised their right of free speech does not automatically mean the
complaint arose from that activity.
The appeals court determined that the association’s lawsuit
was not based on the owners’ protests about the grass replacement project.
Rather, it was based on the owners’ interference with the association’s
landscapers. In fact, none of the association’s allegations dealt with free
speech.
The appeals court stated, although the lawsuit involved the
grass replacement project, that alone did not convert the owners’ protests into
the basis for liability. The owners were free to continue to protest the
project through emails and statements at board meetings. The injunction sought
by the association would not impinge on those free speech rights; it would only
affect the owners’ abilities to obstruct the landscapers’ work.
The appeals court pointed out that, if the owners had never
protested the project but still blocked the landscapers’ work, the
association’s complaint would be unchanged. So, it was clear the lawsuit did
not involve activity protected by the anti-SLAPP statute.
The trial court’s order was affirmed, and the association
was awarded its appellate costs. ©2017 Community Associations Institute. All rights reserved.
Reproduction and redistribution in any form is strictly prohibited.
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