Court Says HOA Not Entitled to Charge Homeowner for Attorney Fees Incurred by Association

This case involved a dispute between a homeowners association (“Association”) and a homeowner (“Owner”). The dispute was over the unilateral assessment of a charge against Owner for attorney fees and costs that had been incurred by Association in seeking and obtaining an injunction against Owner. Association sought an injunction in order to prevent her continued disruption of Association’s meetings and harassment of certain board members.

Chronology of Events that Occurred

Various instances of disruption at meetings and harassment of directors prompted Association to retain a private off-duty police officer as a security guard at board meetings. As a result, Association sought and obtained an ex parte injunction against Owner that under an Arizona statute that prevents workplace harassment. Association did not ask the justice court that issued the injunction to award it attorney’s fees, so none were awarded by the court. However, Association subsequently assessed Owner the sum of $3,887.28 for the fees incurred in obtaining the injunction. Association made the assessment based on provisions contained in Association’s governing documents that requires owners to pay attorneys’ fees that are incurred by Association in connection with an action to enforce compliance with or specific performance of the terms contained in Association’s Declaration.

According to Association, Owner’s conduct violated certain provisions of the Declaration and Association had to take legal action to enforce the Declaration in which legal fees and costs were incurred. Since this action resulted in the imposition of an injunction, it was entitled to assess the fees and costs against Owner. In disputing Association’s right to assess the fees and costs against her, Owner filed an action against Association seeking damages in the amount of the assessment, plus the costs and fees that she was incurring in challenging the assessment.

The Trial Court Ruling