COURT UPHOLDS $401,918.50 ATTORNEY FEE AWARD TO HOA AFTER OWNER LOSES DISPUTE OVER $10,000 WORH OF UNAUTHORIZED MODIFICATIONS

This case involved a dispute between two homeowners (“Owners”) and their homeowners association (“Association”) over remodeling work performed by Owners within their unit that had not been approved by Association in accordance with the governing documents.

Prior to purchasing the subject unit, Owners rented the unit from a relative. During the period of the rental, the actual owner submitted an application to the Association for approval to remodel the unit, which was denied. Subsequent to the denial, Owners purchased the unit and began partial demolition work in contemplation of remodeling the unit. After Owners failed to comply with a “cease and desist” demand from the Association, the Association filed suit against Owners alleging claims for breach of the CC&Rs, declaratory relief, trespass, and nuisance. In response to the Association’s action, Owners filed a cross-complaint alleging claims against the Association for breach of the covenant of good faith and fair dealing, breach of fiduciary duty, and declaratory relief.

The trial court found that: