April 2007

A question we are frequently asked by associations is how strictly they should enforce their covenants. This was exactly the dilemma faced by a small patio home community located in North West Denver. Apparently a homeowner had painted her house golden yellow. The color was not unattractive – it actually looked quite nice – but it was clearly not one of the earth tone colors approved by the association. After some investigation by the Association’s Board of Directors, it became apparent that this was an honest mistake by the homeowner. She was new to the community and was unaware that she was restricted in her color choices. Although she was also willing to work with the Association to correct things, money was an issue. She had recently experienced some serious personal problems and could not afford to repaint her house. This is when I received a call from the Board’s president asking “What should we do?”Continue Reading Covenant Enforcement – The Golden Rule

Below is a trial story from Larry Leff, senior partner here at WLPP:

Not Your Ordinary Collection Case

In the not too distant past our firm took on a collection case for one of our associations that took an interesting twist. We filed a lawsuit in our county court, jurisdiction under $15,000.00, against a homeowner for the non-payment of assessments. The debtor homeowner filed a counterclaim against the Association, asserting claims that the association breached its contract with him – failing to maintain the property – and   that it breached its fiduciary duty to him, among other claims. He also requested exemplary damages. During the course of litigation, the homeowner brought his account current, minus the attorney fees and costs. At trial, the Association was granted an award for its attorney fees and costs, and the court dismissed all the homeowner’s counterclaims.

The homeowner refused to satisfy the judgment, so garnishment proceedings were initiated.   The garnishment was successful and the Association collected the full amount.

Subsequent to the satisfaction, the homeowner decided he wanted to do landscaping work to enhance his property. He put up a retaining wall of concrete, railroad ties, gravel and
Continue Reading Not Your Ordinary Collections Case

Do you or your manager ever receive calls from your members about a domestic violence problem between other residents in your community? How about speeding in the public streets? What about the wild party with all the noise and disturbance at 2:00 a.m.? WHAT ARE YOU GOING TO DO ABOUT IT?! Well, you’re the Association, after all; ENFORCE THE !@##$@@ COVENANTS!! TAKE CARE OF THE PROBLEM!!Continue Reading Why Call The Police When Your Association Can Handle the Problem?