| 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 for information 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. Association's Lien Canceled by Owner's Bankruptcy In re: Sligh, 542 B.R. 723 (Bankr. E.D. Pa. Dec. 3, 2015) Assessments: The U.S. Bankruptcy Court for the Eastern District of Pennsylvania held that the Pennsylvania Uniform Condominium Act did not grant super-lien status to an association's lien since the unit had not been foreclosed. [Read more] Interior Alteration Violated Prohibition Against Second Story Pinnacle Peak Ranchos Property Owners Association v. Ramioulle, Case No. 1 CA-CV 14-0409 (Ariz. Ct. App. Dec. 10, 2015) Covenants Enforcement: The Arizona Court of Appeals held that an association had the authority to inspect home interiors to ensure compliance with the declaration. [Read more] Leasing Restriction Does Not Prohibit Roommates Boston Redevelopment Authority v. Pham, Case No. 14-P-1734 (Mass. App. Ct. Nov. 19, 2015) Covenants Enforcement: The Appeals Court of Massachusetts held that whether condominium documents required consent for a roommate was, at best, ambiguous, and the ambiguity should not be construed against the owner. [Read more] New Restrictions Invalid without Unanimous Consent Conlin v. Upton, Case No. 322458 (Mich. Ct. App. Nov. 24, 2015) Developmental Rights: The Michigan Court of Appeals held that an association had no authority to impose new property restrictions without the consent of all owners. [Read more] Failing to Pay Assessments Does Not Terminate Developer's Rights Litchfield Plantation Association, Inc. v. Litchfield Plantation Company, Inc., Case No. 2015-UP-532 (S.C. Ct. App. Nov. 25, 2015) Developmental Rights/Developer Liability: The South Carolina Court of Appeals held that a developer's failure to pay the amounts due to an association caused the developer's voting rights only to be suspended, not permanently terminated. [Read more] Insurer is Not Relieved of Liability by Settlement Agreement Brownstone Homes Condominium Association v. Brownstone Forest Heights, LLC, 358 Ore. 223 (Or. Nov. 19, 2015) Risks and Liabilities: The Oregon Supreme Court overturned precedent by holding that to obtain a complete release of liability in a settlement agreement requires more than a covenant by the plaintiff not to execute a judgment. [Read more] Declaration Does Not Create Lien Settlers Walk Home Owners Association v. Phoenix Settlers Walk, Inc., 2015-Ohio-4821, Case Nos. CA2014-09-116, CA2014-09-117, CA2014-09-118 (Ohio Ct. App. Nov. 23, 2015) Risks and Liabilities: The Ohio Court of Appeals held that recording a declaration does not create a perfected, enforceable lien that binds successive owners. [Read more] Policy Exclusions Preclude Insurance Coverage for Litigation The One James Plaza Condominium Association, Inc. v. RSUI Group, Inc., Case No. 15-294 (D.C.N.J. Dec. 2, 2015) Risks and Liabilities: The U.S. District Court for the District of New Jersey found that an insurance policy's specific litigation exclusion precluded coverage for a second lawsuit against the association involving the same types of claims already litigated. [Read more] |