Legal Question in Real Estate Law in California
Can HOA take action against homeowner for not following Davis-Stirling?
Here is the case -- HOA plans to substantially raise regular assessments and gets sued in superior court by a homeowner for slander of title because supposedly higher assessments make property less marketable. The HOA is represented in this case, but I wonder if HOA can sue this homeowner for the expense of defending itself. Per Davis-Stirling the homeowner should have used IDR/ADR first but instead went for superior court without even reviewing the budget proposal. Thanks!!
1 Answer from Attorneys
Re: Can HOA take action against homeowner for not following Davis-Stirling?
The questions of ADR, attorneys fees and the like will all get resolved in the pending lawsuit. A separate lawsuit would be unnecessary and costly. Your attorneys will seek attorneys fees and costs when and if they prevail - until then, there is no basis for seeking fees. They will also seek to have the matter referred out to ADR, or alternatively, to have the lawsuit thrown out on the grounds that ADR was required prior to filing, if in fact that is required. My recollection, however, is that homeowners have successfully defeated that argument in the past. Let your appointed counsel handle the lawsuit.
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