Court Awards $500,000 to HOA and Homeowner

This case involved a dispute between the owner of a property located within a common interest development (“Owner”), the governing homeowners association (“Association”), and the joint owners of a neighboring property (“Neighboring Owners”). The dispute was over Association’s approval and Neighboring Owners’ construction of modifications to their existing home, or the construction of an entirely new home, in a manner that blocked the view from Owner’s property. Owner’s complaint alleged claims against Association for breach of fiduciary duty and declaratory relief and claims against both Association and Neighboring Owners for breach of Association’s CC&Rs.

The trial court granted summary judgment in favor of Association and Neighboring Owners based upon a determination that, as a matter of law, California law does not generally protect a homeowner’s view and Association’s CC&Rs did not contain provisions that “guaranteed a right to an unimpaired view.” The trial court also awarded Association $159,363 in attorney’s fees and awarded Neighboring Owners $333,229 in attorney’s fees. Owner then appealed the trial court’s judgment.

On appeal, Owners contended that Association breached the CC&Rs by approving Neighboring Owners’ project without evaluating: