We, attorneys of community associations, often have to advise our clients about their options related to pursuing litigation. We often have to advise them about defending their interests in lawsuits as well. There are inherent challenges when an association is involved in litigation. First, the association is a not-for-profit corporation. Typically, it (rightfully so) wants to use its funds to pay for something other than legal fees. Second, it is not uncommon that the party the association is suing is a unit owner. Hence, the parties are neighbors.
issued its ruling in Goldberg v. Astor Plaza Condominium Association, et al,1
L
itigation is expensive and typically takes a long time. By way of example, in 2012, the appellate court in Illinois
which gave us all a good taste as to how
long a lawsuit can last. In that matter, the lawsuit was filed in 2006, but included allegations from 2005. It took six plus years to bring that litigation to conclusion. Similarly, the case of Palm II v. 2800 Lake Shore Drive 2
resulted in years long
litigation and two separate appeals. Do you remember what you first thought when you read Palm II? Many thought that Gary Palm was the most difficult owner a board of directors could face. Oh boy, were we wrong. At least with Palm II, all involved in community associations were reminded of the need to strictly comply with an association’s community instruments and the statutes that are applicable to the community association. It was a case that was based upon the law and the proper actions of a board of directors. Many cases that have followed Palm II did not clarify the law but created nightmares for those on a board of directors or the association’s team. After all, we are in a time when the facts of these lawsuits are more and more bizarre and beyond enforcement or governance issues. Presently, cases often arise because someone does not like someone else in the association. These types of cases usually continue “because of principle,” which means they last longer than necessary, are expensive, and will likely lead to more division within the community. They are less about clarifying the law and more about dealing with difficult people.
For example, in Spiegel v. 1618 Sheridan Road Condominium Assoc. Inc., et al.3
, a unit owner filed suit against the condominium association in 1998 for its failure to open the outdoor pool. The parties reached a settlement, which required the pool to be open every year and required the owner not to post documents related to the association on the windows of his unit. Guess what happened in 2020? The association could not open the pool due to the pandemic and the owner sought to enforce the settlement agreement. The association filed its own counter-petition against the owner because he returned to posting signs in his window. Not only were signs posted in the windows of his unit related to the association and its board, but also the owner added photographs of the board members and incorporated a mannequin and gravestones into his display. While the lawsuit resulted in an order in favor of the association, the appellate court’s ruling was not issued until 2022. For 24 years, this small, eight (8) unit condominium association, has been engaged in reoccurring litigation with this one owner.
12012 IL App (1st) 110620 22014 IL App (1st) 111290 32022 IL App (1st) 201142
These types of cases are not only in Illinois, but everywhere. Alpine Haven Property Owners Association, Inc. v. Deptula4
is a
Vermont case that also exemplifies an on-again, off-again dispute between an owner and the association. The court
www.cai-illinois.org • 847.301.7505 | 37
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
