Homeowners Failure to Participate in ADR Only Impacted Fee Award Amount, Which Was Not Challenged Properly.
In Chacon v. Brookhurst Village Condominium Assn., Case No. G043984 (4th Dist., Div. 3 July 29, 2011) (unpublished), plaintiff homeowners were found to be the prevailing parties in an HOA dispute over a board election. A lot of time and energy were spent on who did and who did not agree to participate in ADR, with plaintiffs apparently winning the battle. They then moved for fees as the prevailing parties under the CC&Rs, because fee entitlement extends to an action challenging the propriety of an election under the HOA bylaws. (Kaplan v. Fairway Oaks Homeowners Assn., 98 Cal.App.4th 715, 720-721 (2002).) They were awarded fees of $21,588 and costs of $1,708.
HOA appealed, but lost.
The fee award to the prevailing parties was mandatory under Civil Code section 1354. Even if they failed to participate in ADR (which was likely not the case), that only impacted the amount of the award. (Civ. Code, § 1369.580.) The amount of fees were not excessive, with HOA not providing any declaration to show otherwise. Also, prelitigation fees were a proper component of the award. (Stokus v. Marsh, 217 Cal.App.3d 647, 655 (1990).)
The 3-0 opinion was authored by Acting Presiding Justice Rylaarsdam.