Court Says Owners Cannot Withhold Payment of Assessments to Protest Board Actions or Alleged Wrongdoing

Homeowners and condominium associations often find themselves balancing the duty to collect assessments with the responsibility of the association to act fairly and transparently toward members. This case decision offers important insight into how courts view that balance—particularly when owners challenge the legality of board actions while simultaneously owing unpaid assessments. Although the decision was issued under Illinois law, its reasoning highlights common issues that associations across the country can learn from.

The case involved a longstanding dispute between a condominium owner (“Owner”) and her condominium association (“Association”) over unpaid assessments and a special assessment that had been levied years earlier to pay legal expenses from prior litigation.

In defense of an action filed by the Association, Owner denied owing the amounts claimed and filed two counterclaims alleging: (i) the special assessment was illegal because board members who voted for it had conflicts of interest; and (ii) the association violated owners’ rights to inspect records under the Illinois Condominium Property Act.

The trial court struck both counterclaims, held a bench trial, and entered judgment for the association in the amount of: