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Trial court erred in abrogating homeowner’s obligation to pay fees to HOA

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The Indiana Court of Appeals reversed a trial court’s ruling that changes in a gated residential vacation and retirement community were so radical as to abrogate a homeowner’s obligation to pay yearly fees to the homeowners association.

In 1998, Clarence Ray Meador and his wife bought a lot, which included a double-wide trailer and a 40-foot boat dock, in Country Squire Lakes Community in North Vernon. In 2006, Meador purchased an adjacent lot. The annual dues are $75 per lot and the current assessment is $300 per lot. As the economy fluctuated, investors purchased lots for rental or contract properties and the community shifted from owner-occupied to tenant-occupied. The rental property owners frequently stopped making payments to the HOA. Currently, 60 to 65 percent of these owners are delinquent on their fees and assessments, leaving the HOA with a $3 million to $4 million revenue shortfall.

As a result, dues and assessments are used on essentials such as payments on a $950,000 improvement loan, repairs to a dam, insurance and limited road maintenance, leaving insufficient funds to maintain the recreational amenities. Meador paid his dues and assessments and tried to influence the HOA board of directors in their budgetary decisions but he was ignored, and he has been unsuccessful at getting a financial audit of the HOA.

The trial court abrogated Meador’s obligation to pay dues and assessments, concluding the changes in the community had been so radical that the original purpose of the community and the deed restrictions had been defeated long ago. It also ruled that Meador could still vote at the HOA meetings because his obligation to pay had been abrogated.

In its appeal, the HOA argued the trial court’s decision “conflicts with long-established Indiana contract law.”

The COA agreed with the HOA, finding the lack of recreational facilities is not radical enough to justify the abrogation of a private contractual property covenant and that the HOA bylaws clearly state the financial obligations of homeowners.

Although the COA appreciated the trial court’s attempt to provide relief, the majority stated, “the relief provided is not one afforded under Indiana law, and thus we cannot affirm the judgment. The abrogation of Meador’s obligation to pay dues and assessments is not a remedy for these problems, but there are potential alternatives that Meador and the HOA can investigate.”

 

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  1. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  2. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  3. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  4. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

  5. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

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