Condo Media - May 2023 - 40

The Region NEW HAMPSHIRE
RULE VIOLATION FINES
The case begins with a residential unit owner
renting the unit. The association assessed
fines after the tenants repeatedly violated the
rules and regulations. The violations related
to pets, noise, and parking issues. In one
notable incident, the tenants were involved
in an altercation with the police. Needless to
say, the situation with the tenants disturbed
other owners, some of whom complained
to the association. As you may know, faced
with such circumstances, board members are
actually subject to a fiduciary duty requiring
them to act in the best interest of the association
and to enforce the provisions of
the governing documents.
The original total of the fines was
When Fines
Become Fees
Avoid Violations of Association Restrictions
[By Thomas W. Aylesworth, Esq. and Gary M. Daddario, Esq., CCAL]
In a recent decision concluding much litigation, the New Hampshire
Supreme Court upheld a condominium association's assessment of fines
against a unit owner whose tenants violated the community's rules and regulations.
Note that the names of the parties involved are withheld to respect
privacy and no inferences should be made. The result is surprising to those
unfamiliar with the law - the unit owner was deemed responsible for just over
$1,400 in fines, but was also ordered to pay the association's attorneys' fees
totaling over $45,000. Spoiler alert: The moral of the story is that it makes
sense, both practically and financially, to avoid violations of your association's
restrictions or, at a minimum, to resolve them as efficiently as possible.
We will explore this saga here.
40 CONDOMEDIA May 2023
approximately $700, plus minimal interest.
The unit owner, however, refused to pay.
The association filed suit in the New Hampshire
Superior Court. The association then filed
a summary judgment motion, arguing that the
case was a clear-cut matter of rules violations
and enforcement by the applicable penalties
under the governing documents. The unit owner
strenuously objected and filed numerous
pleadings containing theories that ranged from
outright denials to accusations of wrongdoing
by the association and its legal counsel.
The Superior Court judge agreed with
the association as to most of the fines it had
assessed, and the court entered summary
judgment against the unit owner. The court
declined to award the association certain of
the fines because the association was unable
to demonstrate to the judge's satisfaction
that it had followed the enforcement process
set forth in the governing documents.
The lesson here for associations: In order
to have the full support of the courts, it is
necessary to follow strictly the provisions
of the governing documents when it comes
to matters of enforcement and issuance of
penalties. The lesson here for unit owners:
Associations have the right to enforce their
documents and, in cases of violation, the association's
assessment of fines/penalties will
be upheld by the courts.
FINES, FEES, AND COSTS
Ultimately, the Superior Court judge ordered
the owner to pay the fines that, with interest,
had grown to slightly over $1,400. The judge
also agreed with the association that under the
Condo Media - May 2023

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