Find Out Why Court Says Mandatory Award of Attorney’s Fees to Prevailing Association Was Not Mandatory

Case Summary:

This case involved a dispute between the Homeowners Association (HOA) and homeowners over an unauthorized construction project on the homeowners’ property. The legal battle centered on whether the HOA was entitled to recover attorney fees after successfully obtaining a court order requiring the homeowners to remove the unapproved structure.

The homeowners initially submitted plans for for the construction of additional exterior features consisting of a swimming pool, a hot tub, a fire pit, a fence, and decking approval, which the HOA approved. After the construction commenced, Association learned that Owners were also constructing a swimming pool building that was not part of the approved plans. When the HOA discovered the unauthorized construction, it sent a cease-and-desist letter, demanding the homeowners stop construction and remove the structure. The homeowners refused to comply, prompting the HOA to file a lawsuit seeking injunctive relief to enforce its governing documents. Association also sought to recover the attorney’s fees and costs incurred in bringing the action.

After a bench trial, the court ruled in favor of the HOA and ordered the homeowners to remove the unauthorized structure. However, despite winning the case, the HOA’s request for $83,677.60 in attorney fees was denied. The court initially ruled that the homeowners had to pay the legal fees but later reversed that decision, instead requiring each party to pay their own legal costs. The HOA appealed, arguing that its Declaration of Covenants, Easements, and Restrictions required the prevailing party to recover attorney fees. The actual language at issue stated, “if the Claim is litigated in whole or in part, the prevailing party shall be entitled to receive an award [sic] of attorney’s fees and court costs as deemed appropriate by a court of competent jurisdiction.”

Key Issues in the Case

Homeowners’ Arguments: