Recent Court Rulings
Association Not Liable for Disability Discrimination
Facts: An association maintains and exercises control over a series of recreational trails on portions of its “common area.” The association's trails connect to a larger system of trails maintained by other associations or by government entities. After citing safety concerns for horseback riders and trail hikers as well as damage to trail fencing, the association installed barriers on its trail entry points to prevent vehicles from using the trails.
Association Must Arbitrate Construction Defect Claims
Facts: A condo association sued the developer of the condominium for negligent construction and negligent failure to establish an adequate reserve budget for replacement of common elements in the community. There are 102 units in the condominium, and upon the initial sale of 96 of those units, the members signed written agreements with the developer in which they agreed to submit to binding arbitration for claims arising out of the agreements.
Insurer Not Required to Defend Association Against Member’s Lawsuit
Facts: An association obtained insurance liability coverage under two different policies. First, it obtained a commercial general liability policy that provided coverage for property damage. Second, it obtained a directors and officers (D&O) liability policy covering “loss incurred by the association as the result of any claim made against the association for a wrongful act.” The policy defined “wrongful act” as any error, misstatement, misleading statement, act, omission, neglect, or breach of duty committed or attempted by the insured organization.
Management Company Can’t Own Member’s Parking Space
Facts: A condo community has 20 units and 30 parking spaces. At the start of the association, one parking space was assigned to each condominium and 10 spaces were unassigned. A provision in the condominium's declaration permitted the developer to sell the unassigned spaces to members or to third-party non-condominium owners. Under the declaration, no person other than the developer could sell or lease a parking space to a non-condominium owner.
Court Order Against Harassing Member Didn’t Violate Free Speech
Facts: A member repeatedly engaged in outrageous communications and conduct with his association, its managers, and members of its board of directors, which included vulgar and harassing letters, disruption of association meetings, and a physical assault on a board member.
Member Must Pay Association’s Attorney Fees
Facts: A member obtained the approval of the association to build a house, a retaining wall, and a barn on his lot located in the community. The governing documents require that work on any construction projects must be completed within a year of approval. Even so, two years after approval, the member still had not begun construction of the house, and the association gave the member notice that it would begin mediation proceedings to resolve the construction delays.
Insurer Not Required to Defend Against Member’s Personal Injury Claim
Facts: A member was injured as a result of exposure to unsafe sanitary conditions in the community swimming pool. Specifically, the member contracted a viral infection from contaminants in the swimming pool's water. The viral infection was identified as the coxsackie virus, which was contracted from ingesting the community's swimming pool water. According to an expert's report, proper chlorination of swimming pool water is an effective way to kill harmful microbes, including the virus that caused the member's injury.
Roofing Company May Be Liable for Defective Roof
Facts: A few months after an association completed a roofing project, a member wrote a letter to the association board stating that she had a water moisture problem inside her second-story bedroom window as a result of the new tile roof. She also reported several broken roof tiles. Six years later, the buildings in the association suffered numerous roof leaks. And the following spring, the association hired a roofing consultant who found multiple causes for the leaks and multiple types of roof defects.
Member Prevented from Conducting Renovations Without Obtaining Permits
Facts: A condo association's governing documents required members to obtain a permit before starting any renovations in their units. This rule was implemented to ensure that: (1) contractors were aware of the association rules so as not to disrupt other members; (2) all renovations were compliant with building codes; (3) contractors were registered with the city; and (4) contractors possessed sufficient insurance to cover potential damage to any of the units.
Attorney-Member Disqualified from Representing Other Member
Facts: An association member who was also a lawyer filed a lawsuit against the association for alleged improprieties surrounding a special assessment for repairs and maintenance. Under the settlement agreement, the member agreed to write a letter to all members stating that he found no evidence of any self-dealing or any misappropriation of funds. The member refused to sign the letter, and several months later represented another couple living in the community. This lawsuit essentially alleged the same facts and causes of action.