In Hoofman v. Pacific Crest Community Assn., Case No. B230036 (2d Dist., Div. 1 Apr. 16, 2013) (unpublished), an HOA won some breach of fiduciary claims against homeowners. However, they were denied fee recovery. The appellate court affirmed, finding that the win on the breach of fiduciary claims did not fall within the fee clauses allowing for recovery with respect to administration of the CC&Rs by HOA. Simply put, the clause was “not sufficiently broad to cover breach of fiduciary duty claims.”
[Here is what the CC&R clause provided: “The Declarant, the Board, the Association, or any Owner shall have the right to enforce, in any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration, and in such action shall be entitled to recover reasonable attorneys’ fees as ordered by the court.”]