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CCOC Decision Summary

#32-06, Norbeck Grove Condominium Ass'n. v. Norbeck Grove Community Ass'n. (February 7, 2007)  (Panel: McCabe, Gelfound, Vergagni) 

The Condominium Association filed a complaint against the Community Association to which it belonged, and disputed the assessments levied directly on its unit owners by the Community Association.  The Condo claimed that the Community was billing all the unit owners for unpaid assessments owed by 2 Condo unit owners who were discharged in bankruptcy, and also that the Community had not properly maintained the common areas, and it wanted the assessments reduced. 

The panel first ruled that this type of dispute was properly filed under Chapter 10B because both governing boards were "parties" under Section 10B-8(7).

It further ruled that by voluntarily collecting the Community's assessments from the Condo       owners, the Condo assumed the risk of defaults in payments by its members, and therefore the Condo and its unit owners remained liable to the Community for all the assessments due to the Community.  Furthermore the panel held that the law is clear that a unit owner cannot refuse to pay valid assessments on the grounds that the Community had failed to honor an independent obligation (such as maintenance).  Therefore the Community had the right to bill the Condo members directly for its assessments and to deny each Condo member the right to use the Community swimming pool until the member had paid his share of the assessments due.

The panel dismissed the Condo's complaint, and it ordered the Condo to provide a copy of its decision to all of its members within 30 days.

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