*New Case Law In the case of Aldea Dos Vientos v. CalAtlantic Group, Inc., the Second District Court of Appeals overruled the Fourth District’s previous holding in Branches Neighborhood Corp. v. CalAtlantic Group, Inc. The Branches case found that homeowners associations forfeit their rights to pursue construction defect claims unless…
Articles Posted in Litigation
Limitation on HOA Tort Liability for Failure to Uphold Maintenance Obligations
*New Case Law One of the primary purposes for which a homeowners’ association (“HOA”) is formed is to maintain and repair the HOA’s common areas, as well as any other areas designated within the HOA’s recorded Declaration of Covenants, Conditions and Restrictions (“CC&Rs”) (i.e., HOA Maintenance Areas). Faithfully executing the…
Court of Appeal Upholds Pre-Litigation Arbitration Clause
*Unpublished Opinion We recently blogged about the importance of the the plain language of an association’s Declaration when following pre-litigation requirements to a construction defect claim. On March 18, 2019, the California Court of Appeal ruled that trial courts should not deny a homeowner of his right to submit a case…
Recent California Court of Appeal Ruling Limits Anti-SLAPP Protection for Actions by Board of Directors
*Unpublished Opinion The recent unpublished opinion of Chemers v. Quail Hill Community Association et al. (2018) shines some light on the oft-misunderstood California Anti-SLAPP statute and its effectiveness as a defense for actions by a homeowners association’s board of directors. The Fourth District California Court of Appeal held that certain…
Arbitrator Not Found to Exceed its Powers
It is well settled that an association’s CC&Rs (“Declaration”) establishes and controls, among other things, a board’s authority to govern an association provided that the CC&Rs do not conflict with California law and regulations (i.e., Davis-Stirling Act). In such cases, the plain language of the CC&Rs control. (Franklin v. Marie…
Attorney’s Fees and Costs are not Available to a Moving Party who Secures Interim Injunctive Relief
Preliminary injunctions are temporary court orders requested by one party that prevents another party from pursuing a particular course of conduct until the conclusion of a trial on the merits. A preliminary injunction is proper where the moving party proves the following two factors: (1) the likelihood that the moving…
Access to HOA Membership List Must be for a Proper Purpose
*New Case Law As part of the ongoing management of a homeowners association (“HOA”), the HOA is obligated to prepare and maintain certain “association records,” most of which must be made available for inspection by the HOA’s members. However, the right to inspect and copy certain association records is not…
Encroaching on HOA Common Area Could Cost You
*New Case Law Rural, equestrian, and large-scale planned developments may include properties with spacious lot sizes bordered by common area lots and open spaces. When property lines are not clearly delineated or easily identified in these communities, there may be instances where a homeowner seeks to expand his property by…
Clarifying When a HOA may be Deemed the ‘Prevailing Party’ in an Enforcement Suit
*New Case Law Civil Code Section 5975(c) serves a vital function for any HOA’s enforcement efforts. Should a HOA be required to file a lawsuit to enforce its governing documents, Section 5975(c) entitles the HOA to recover from the defendant homeowner the HOA’s attorney’s fees, provided that the HOA is…
Attorney’s Fees are Recoverable to Enforce Settlement Agreement Reached in ADR
*New Case Law The Davis-Stirling Act promotes the nonjudicial resolution of disputes between homeowners associations (“HOAs”) and their members in various respects. One example is found contained in Civil Code Sections 5930 et. seq. which, in sum, require that the disputing parties to endeavor to resolve the dispute through Alternative…