Ct. Rules that Absent Individual Injury, Members Cannot Enforce Restrictions that the HOA Waives its Right to Enforce

This case involved an interesting set of facts where an individual member of a homeowners association (“Association”), who also was a member of Association’s Board of Directors and served as the Secretary of Association, sued two other members of Association (“Owners”) on the ground that they had leased out their home in violation of leasing restrictions contained in Association’s Bylaws. The restrictions at issue include a rule prohibiting occupants not named in the lease and a prohibition against subletting. Notwithstanding these restrictions, Association’s Bylaws empower the Board of Directors to approve leases that do not meet the requirements contained in the Bylaws by a 2/3 vote. The Bylaws also contained a provision that granted individual members of Association the same rights as Association to enforce any provision of the Bylaws other than the right to collect delinquent assessments. Thus, the suing board member contended that he had standing as a member of Association to sue Owners. After the lawsuit was filed, Association’s Board of Directors, acting through its President, approved Owner’s lease. Notwithstanding Association’s approval of the lease, the individual board member continued with his lawsuit based on a contention that the approval by the Board of Directors was improper under Association’s Bylaws.