Community E-ssentials

August 2005 NUMBER 45   Volume 4 Issue 9  
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CONTENTS
Bankruptcy Reform Brings Both Relief and Uncertainty to Homeowner Associations
Supreme Court Upholds Homeowners Rights: Yacht Club Economic Loss Rule
What Are Policies, Procedures, Rules and Regulations?
Case of the Month: $227,000 Worth of Daily Fines Upheld by California Trial Court
SB 100 FAQs
Case of the Month: $227,000 Worth of Daily Fines Upheld by California Trial Court

Hope Ranch association had a big problem with one of its owners.  Described as “the neighbor from hell,” the owner in question flagrantly violated rule after rule by blocking horse trails, screening in his property, installing flood lights, and converting a section of his property into a parking lot.  In an attempt to force compliance, the association imposed a daily $100.00 fine until the owner cured the violations.  Undeterred, the owner refused to comply with the association’s rules.  Hope Ranch then found itself in court, defending the $227,000 fine that the owner had accumulated.
 
The court found in the favor of Hope Ranch, holding that “Hope Ranch did not abuse its discretion in finding continuing violations … or in imposing monetary penalties against the [owner] … [the] Board acted upon reasonable investigation, in good faith, with regard to the best interests of the Association, and not in an arbitrary manner and its actions are entitled to deference …” The court further ruled that $227,000 was not an unreasonable monetary penalty because the owner’s own actions contributed to the amount of the penalty as the owner could have prevented the imposition of the fines by simply coming into compliance with the association’s rules.  Although this case cannot be cited as legal precedence, it evidences that when boards follow the appropriate procedures, courts are agreeable to upholding those fines.


[PRINTER FRIENDLY VERSION]
The University
Upcoming Classes:

SB 100 Seminars

August 23, 2005 - Avon Public Library
200 Benchmark Road, Avon 81620
1:00 - 4:00 PM

August 25, 2005 - Edwin A. Bemus Library
6014 South Datora Street, Littleton 80120
6:00 - 8:30 PM

August 30, 2005 - Wheat Ridge office
11901 West 48th Avenue, Wheat Ridge 80033
6:30 - 9:00 PM

Click here to register
Manager Lunch Forums

Limiting Association Liability
Wheat Ridge Office
September 1, 12:00pm - 1:30pm

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Community Associations Institute
The Community Associations Institute (CAI) is a nonprofit organization that provides education and resources to community associations. To find out more about CAI visit www.caionline.org
 
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Published by Orten & Hindman, P.C.
Copyright © 2005 Orten & Hindman, P.C.. All rights reserved.
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