Court Finds HOA Assessment of $80,225 in Fines for Maintenance Violations was Unreasonable

This case involved an action brought by a homeowner’s association (“Association”) against the owner of a property (“Owner”) within the development governed by Association. Association alleged that Owner had failed to maintain its property as required by Association’s governing documents. Additionally, Association had assessed Owner $80,225 in fines for the maintenance violations which it sought to collect in the action along with an injunctive order compelling Owner to perform the required maintenance. Owner failed to respond to Association’s complaint and the trial court rendered a default judgment following the submittal of evidence by Association.

The trial court found Association’s assessment of over $80,000 in fines for the maintenance violations was unreasonable and in violation of Association’s Bylaws. Specifically, the court found it unreasonable that Association had chosen to fine Owner $25 per day for nearly 5 years for failure to clean and repaint a mailbox rather than have the work done and assess Owner the cost. Association appealed the default judgment which denied Association’s request for injunctive relief after finding that Association had an adequate remedy at law.

On appeal, Association contended: