CC&R Count Justified Fees to County.
We have told you before that HOA contests can be expensive. Yes, they can. Many times, very expensive for the losing HOA, which likely will have to pass losing fees through to homeowners via special assessments or other insolvency options.
In County of Los Angeles v. La Vina Homeowners Assn., Case No. B210444 (2d Dist., Div. 8 Apr. 5, 2010) (unpublished), County brought an action based upon nuisance and CC&R breach theories against HOA for failing to include public hiking and equestrian trails within the residential subdivision. Lots of evidence showed this was the intent, but the trails inadvertently got omitted from final maps. After a 23-day bench trial, County prevailed and was subsequently awarded $783,944 in attorney’s fees as the prevailing party under the CC&Rs.
HOA appealed, but the fee award was affirmed. County’s lodestar was $825,395, and it acceded to a 5% reduction to the actual award amount. The appellate court found the hard work of the 3 successful County attorneys, at a “solid but moderate” $ 334 average hourly rate, well justified the fee award. Smart lawyering by the County to agree to a modest discount; it paid off in this one.