HOAleader.com - Tip of the Week - April 19, 2013
Published: Fri, 04/19/13
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Are Illinois Courts a Danger to Its
State's HOAs and Others?
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In this week's tip, we head back to Illinois
to discuss yet another questionable Illinois
court ruling that could have implications
for HOAs far and wide. (See last month's
article on another questionable Illinois
court ruling.)
Currently pending before the Illinois Supreme
Court is Spanish Court Two Condominium
Association v. Carlson. In Spanish Court, an
Illinois condo association sought possession
of the defendant's condominium unit for unpaid
general and special assessments, late fees,
and costs and attorneys' fees.
The owner, however, argued she didn't owe
the association because it had failed to
maintain and repair the building's brickwork
and roof, causing major water damage in her
unit. In essence, she argued she was
entitled to withhold assessments to the
extent of the cost of the repairs needed to
her unit as a result of the association's
negligence.
The court held that owners and associations
make mutual promises: The association promises
to maintain the common elements in exchange
for the owner's promise to pay assessments.
If the association fails to meet its promise,
owners can assert they don't have to fulfill
their promise to pay assessments. However,
the court rejected the owner's claim that
she could sue the association for damages to
her unit caused by the association's failure
to maintain common areas. The court also
distinguished between regular and special
assessments. It said an owner disappointed
in the way street paving was competed-after
paying a targeted special assessment for
it-couldn't withhold regular assessments as
a result.
The upshot: If an association pursues an
owner for nonpayment of assessments, the
owner can defend against the claim by saying
since the association breached its duties,
she was entitled to breach her duties, too.
However, the owner has no claim against the
association for the cost of repairing unit
damage caused by the association's failure
to maintain or repair common areas.
The Illinois Supreme Court has agreed to
hear an appeal in this case, so it's possible
this ruling may not stand. Our experts
universally agree reversal is necessary.
Find out why in our new article:
http://www.hoaleader.com/members/839.cfm
Best regards,
Matt Humphrey
President
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Click here to read full article:
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Click here to read full article:
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areas, and other parcels within the properties.'
Click here to read full article:
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Did That Board Member Really Say That? And Who Leaked It?
In this week's tip, we reveal the lessons of "catgate," which prompted the
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Click here to read full article:
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