Nationwide – CAI Law Reporter: Recent Cases in Community Association Law

Condominium Unit’s Contract of Sale May Be Revoked

Berkovich v. Vue-North Carolina, LLC, 3:10-cv-618-RJC-DSC, U.S. Dist. Ct., W. Dist. N.C., Oct. 24, 2011

Federal Law and Legislation: A North Carolina district court ruled that the purchaser of a condominium unit was entitled to rescind his sales contract and recover his escrow deposit because the agreement did not contain a recordable legal description of the condominium, as required by the Interstate Land Sales Full Disclosure Act.  [Read more]

Insured Owners Can’t Recover Replacement Costs

Buckley Towers Condominium, Inc. v. QBE Insurance Corporation, No. 09-13247, U.S. App. Ct., 11th Circuit, Sept. 14, 2010

Risks and Liabilities: A U.S. appeals court found that a condominium owner was not entitled to replacement costs for hurricane damage because its insurance policy required that the owner make the actual repairs before seeking to recover the costs. [Read more]

HOA Can’t Purchase Amenities with Assessments

Fairfield Harbour Property Owners Association, Inc. v. Drez, No. COA11-205, N.C. App. Ct., Nov. 15, 2011

Powers of the Association: A North Carolina appeals court ruled that a homeowners association did not have the authority to purchase recreational amenities with assessments collected from owners. [Read more]

“Other Insurance” Clause Dictates Insurer’s Obligations

Fieldston Property Owners Association, Inc. v. Hermitage Insurance Company, Inc., 920 N.Y. S.2d 763 (N.Y. App. Ct. 2011)

Risks and Liabilities/Contracts: A New York appeals court determined that although a suit against a homeowners association for injurious falsehood was covered both by a general liability policy and a directors and officers liability policy, the general liability policy’s primacy on the claim preempted any obligation the directors and officers liability insurance policy had because the policy was in excess of other valid insurance. [Read more]

Assessments, Fees Part of HOA’s Bankruptcy Estate

In re Stone Creek Village Property Owners Association, Inc., No. 10-54343-C, Chapter 11, U.S. Bankruptcy Ct., W. Dist. Texas, July 27, 2011

Federal Law and Legislation: The bankruptcy court for the Western District of Texas held that assessments and management fees collected by a homeowners association were considered property of the association’s bankruptcy estate and subject to an automatic stay of prosecution triggered by its Chapter 11 bankruptcy filing. [Read more]

Arbitration Agreement Not Part of Ambiguous Settlement

Lillie v. Channel View Condominium Association, No. B224330, Calif. App. Ct., Feb. 23, 2011

Contracts: California appeals court ruled that the ambiguous language in a settlement agreement was insufficient to compel the arbitration of future disputes. [Read more]

Party Responsible for Maintaining Stairway Unclear

Moody v. Soundview Condominium Association, No. CV095013200, Conn. Super. Ct., Feb. 4, 2011

Risks and Liabilities: A Connecticut court denied summary judgment to a condominium association in a negligence case because a genuine issue of material fact existed as to whether the association controlled the stairway, a limited common element of the condominium, where the accident took place. [Read more]

HOA Entitled to Foreclose on Unit for Unpaid Assessments

Village Green Homeowners Association, Inc. v. Leeder, No. 04-10-00522-CV, Texas App. Ct., March 2, 2011

Assessments/Covenants Enforcement: A Texas appeals court ruled that a homeowners association was entitled to foreclosure of its lien for unpaid assessments. [Read more]

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