Lower Unit Owner Loses Action Against Upper Unit Owner and Association Based on Noise and Nuisance Claims and is Ordered to Pay Over $460,000.00 in Attorney Fees and Costs

This case involved a dispute between a homeowner’s association (“Association”), and upstairs and downstairs condominium owners over noise complaints. Association’s CC&Rs contained a provision that required the submittal of disputes under the CC&Rs to binding arbitration before the American Arbitration Association (“AAA”) if the parties were unable to resolve them informally or through mediation. The downstairs unit owner complained of excessive noise coming from the upstairs unit that was believed to be related to flooring in the upstairs unit. Being unable to resolve the dispute, the downstairs unit owner filed a demand for arbitration with the AAA in which he sought damages, declaratory relief, attorney fees, and arbitration costs against the upstairs unit owner and the Association.

The Association cross-complained in the arbitration proceeding against the downstairs unit owner claiming breach of the CC&Rs, statutory violations, nuisance, negligence, and declaratory relief. The Association contended that the downstairs owner allowed his three children to make excessive noise, and that he harassed and stalked the upstairs neighbor’s daughter, which actions constituted a nuisance.

The arbitrator issued an award rejecting the downstairs owner’s claims after finding that the noise from the upstairs unit was “normal noise associated with residential life.”  The arbitrator also rejected the Association’s claims against the downstairs unit owner and, for the purposes of an award of attorney fees and costs, ruled that the Association and the upstairs unit owner were the prevailing parties. After briefing regarding the amount of attorney fees and costs to be awarded, the arbitrator awarded the Association a total of: