OWNERS’ REFUSAL TO COMPLY WITH RENTAL RULES RESULTS IN ASSOCIATION JUDGMENT FOR DAMAGES, ATTORNEY’S FEES/COSTS, AND FORECLOSURE

This case involved a dispute between husband-and-wife condominium owners (“Owners”) and their condominium owners association (“Association”) over Owners’ noncompliance with rules relative to the renting of units. In 2019, the Association enacted new rules requiring owners who rent their units to comply with updated regulations, including a $25 nightly rental fee, renter check-ins, and execution of a new rental agreement. Owners, who owned three units, refused to comply, arguing that the HOA had abandoned its authority and that the new rules violated governing documents and state law.

In July 2020, the Association sued Owners for breach of contract, declaratory relief, an injunction, and an award of damages, attorney fees, and costs. Owners defended the case by raising several affirmative defenses and filing counterclaims for breach of contract, promissory estoppel, negligence, and breach of fiduciary duty.

The trial court granted summary judgment in favor of the Association and dismissed Owners’ affirmative defenses and counterclaims. The trial court further ordered Owners to immediately comply with the Association’s rules and found that Owners owed the Association damages for unpaid rental management fees in an amount to be later determined by the court.  The parties subsequently agreed that the unpaid rental management fees totaled: