Condominium and HOA Litigation

Types of Communities

• Condominiums
• Planned Communities
• Mixed Use
• Master and Subassociations

Governing Statutes

• ORS 100 - Condominium Act
• ORS 94 - Planned Community Act
• ORS 65 - Nonprofit Corporation Act

Legal Standing

Statutory Standing

• Collection of Assessments
• Enforcement of Governing Documents
• Matters Affecting all Owners
• Damage to Common Property / Common Elements

Typical Parties to Litigation

• Association v. Owner
• Owner v. Association
• Association v. Developer
• Association v. Third Party

Areas of Liability

• Safety
• Failure to Maintain
• Mismanagement
• Discrimination

How the Association Protects Itself

• Indemnification
• Waivers of Liability
• Business Judgement Rule
• Insurance

Funding Litigation

• Loan
• Special Assessment
• Contingent Fee Arragement

Effects of Litigation

• Lending
• FHA Certification
• Stigma
• Special Assessment

Common Lawsuits

• Construction Defect
• Breach of Covenant
• Breach of Fiduciary Duty
• Collection of Assessments
• Nuisance
• Fair Housing

Defenses

• Unequal Enforcement
• Laches, Estoppel
• Statute of Limitations

Prelitigation Requirements

Types of Insurance

• Property
• Liability
• Directors and Officers
• Fidelity

Selling Properties in Litigation

• Attorney Letter
• Disclosures
• Escrow Holdback

Other Considerations

• Incorporation Status
• FHA Status
• Reserve Funding
• Meeting Minutes