October Law Reporter (CAI)

October 2022
Recent Cases in Community Association LawLaw Reporter provides a brief review of key court decisions throughout the U.S. each month. These reviews give the reader an idea of the types of legal issues community associations face and how the courts rule on them. Case reviews are illustrations only and should not be applied to other situations. For further information, full court rulings can usually be found online by copying the case citation into your web browser. In addition, CAI’s College of Community Association Lawyers prepares a case law update annually. Case law summaries, along with their references, case numbers, dates, and other data, are available online. 

Failure to Follow Corporate Formalities Dooms Lawsuit

4043 S. Drexel Condominium Association v. Burke, No. 1-21-0666 (Ill. App. Ct. Sept. 6, 2022) 
Association Operations: The Appellate Court of Illinois held that an association did not have standing to sue because a properly elected board did not authorize the lawsuit. The association did not properly call meetings, conduct elections, or amend the declaration.  

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Declaration Amendment Banning Short-Term Rentals Upheld

Chiu v. Windermere Lakes Homeowner’s Association, Inc., No. 14-21-00001-CV (Tex. App. Aug. 30, 2022) 
Use Restrictions: The Court of Appeals of Texas held that a declaration amendment barring short-term rentals was enforceable against an owner who conducted short-term rentals before the amendment because the amendment reinforced the existing single-family residential use restriction.  

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Unconscionable Mandatory Arbitration Provision Struck from Home Purchase Contract

Damico v. Lennar Carolinas, LLC, No. 28114 (S.C. Sept. 14, 2022) 
Contracts: The Supreme Court of South Carolina struck a mandatory arbitration clause from purchasers’ contracts with a homebuilder after finding the terms unconscionable. 

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