Category Archives: lawsuit

Judge Approves Purple Swing Set!

guest blog by Nila Ridings

The Stout family is celebrating around the purple swing set tonight! It’s not going away. The parents are not going to jail. The kids can smile and be happy while swinging to their hearts content.

The Raintree Lake board of directors (Missouri) just wasted a lot of money on legal bills and put their HOA on national news. Not to mention the story went viral on the internet. Let’s HOPE they learned something from this case.

 

Here’s an excerpt from the court ruling:

FINDINGS OF FACT
Plaintiff Raintree Lake Home Owners Association (hereinafter “Raintree Lake” or “Plaintiff Raintree Lake”) filed its Petition for Mandatory Injunction and Associated Relief on December 29, 2014, requesting that the Court order Defendants Lewis W. Stout, Jr. and Marla R. Stout (hereinafter “Defendants”) to remove their purple-colored swing set from their property and the subdivision, that the Court award fines, and that the Court award reasonable attorney fees and costs incurred.

Defendants filed their answer to Plaintiff’s Petition for Mandatory Injunction and Associated Relief on February 27, 2015, asserting various affirmative defenses.
A trial on the merits was conducted on August 21, 2015 before this Court.
Plaintiff presented evidence alleging that Defendants were parties to
“Declarations of Covenants, Conditions and Restrictions” (hereinafter “Restriction Agreement”), dated October 29, 1973, and that Defendants were in violation of Article VII, Section 3 of the Restriction Agreement by the erection of the purple swing set at issue in the above-captioned matter.

Article VII, Section 3 of the Restriction Agreement provides that Defendants will not make “improvements, alterations, repairs, change of paint colors, excavations, changes in grade or other work which in any way alters the exterior of any property or the improvements located thereon” or “as relates to any structure on the property to commence it, erect it, make it, or do it” without prior written approval of the property owners association’s Architectural Review Board.

Plaintiff Raintree Lake presented evidence suggesting that Defendants were in breach of the Restriction Agreement when they erected a purple-colored swing set on their property without the written approval of the Architectural Review Board.
Defendants presented evidence that attempts were made to obtain the approval of the Architecture Review Board but that an arbitrary standard was used by the Board, preventing the approval.

Defendants also presented testimony that the color of the swing set met the requirement as set forth in the Raintree Lake Property Owners Association Architectural Review Board Guidelines which states for swings sets and play equipment: “Color: must be subdued and within harmony with other colors of the community including slides, swings and canopies.”

CONCLUSIONS OF LAW
Plaintiff Raintree Lake failed to establish that it is entitled to injunctive relief pursuant to § 526.030, R.S.Mo., and is therefore not entitled to judgment on its Petition for Mandatory Injunction and Associated Relief. An action seeking an injunction is an action in equity. “An injunction is an extraordinary and harsh remedy and should not be granted where there is an adequate remedy at law.” City of Greenwood v. Martin Marietta Materials, Inc., 311 S.W.3d 258, 265 (Mo. App. 2010) citing City of Kansas City v. N.Y.-Kan. Bldg. Assocs., L.P., 96 S.W. 3d 846, 855 (Mo. App. W.D. 2002). The elements for a claim for injunction include: (1) irreparable harm, and (2) lack of adequate remedy at law. Id. Irreparable harm may be found when pecuniary remedies fail to provide adequate reimbursement for the improper behavior. Id. at 266. There is no “adequate remedy at law” when damages will not adequately compensate the plaintiff for the injury or threatened injury. Id. at 265-266.

Plaintiff Raintree Lake failed to present evidence as to the element of irreparable harm. There was no evidence presented to this Court that Plaintiff Raintree Lake will or has suffered irreparable harm as a result of the erection and/or color of the swing set. Although, as stated previously, irreparable harm may be found when pecuniary remedies fail to provide adequate reimbursement for the improper behavior, the evidence before the Court was that Defendants were initially fined in regards to the swing set but that fine was then set aside by Plaintiff Raintree Lake’s own Appeals Board. Plaintiff Raintree Lake failed to meet the first element required under Missouri law for permanent injunctive relief and therefore is not entitled to the relief requested in its Petition for Mandatory Injunction and Associated Relief. As the Court has found that Plaintiff Raintree Lake failed to prove the element of irreparable harm, the Court finds that it is unnecessary to address the second element, that there is no adequate remedy at law.

JUDGMENT
IT IS HEREBY ORDERED, ADJUDGED AND DECREED that the Court finds
in favor of Defendants and against Plaintiff as to Plaintiff’s Petition for Mandatory Injunction and Associated Relief.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Plaintiff’s request for the award of fines is denied.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Plaintiff’s request for reasonable attorney fees is denied.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Defendants’ request for reasonable attorney fees is denied.
IT IS SO ORDERED.
Date:August 28, 2015

 

6-Year Old Condo – $8.7 Million Special Assessment

guest blog by Deborah Goonan

St. Petersburg’s Signature Place condo is in the news again. Condo owners have known for months that there were construction defects with leaky windows. Well, now that portions of stucco have been removed and walls have been opened up to assess the extent of the problem, it turns out that someone forgot to put re-bar in the concrete walls. Oh, and, by the way, the stucco job has allegedly been botched, too. The Condo Board is concerned that residents or pedestrians walking by the tower could be injured by falling stucco. Not a concern to be taken lightly with Florida’s offshore winds and threats of hurricanes.

The owners are looking at major construction noise and disruption through December 2016. Although there is pending litigation between the Association and the Developer Joe Cantor and several construction companies, these are apparently emergency repairs that cannot wait for a painstakingly slow legal process. So condo owners are facing hefty special assessments, spread out over 10 years of monthly assessment increases.

According to the Tampa Bay Times report, those assessments range from about $10,000 to $132,000, depending on the size of the condo unit, with many around $50,000. Sale prices of units have ranged from units auctioned off in the $200-300 thousand range to $1.3 million for the grand penthouse. Owners of the more modestly priced units will be hit hardest, because they are living on relatively modest fixed incomes.

Of course, construction defect litigation can drag on for several years. Who knows if condo owners will recoup any of this money. Quite often, the Association is lucky to end up with about half of what it actually costs to fix shoddy construction, by the time the attorneys are paid.

And what are the chances that all of these condo owners will be able and willing to pay these huge assessments? Even spread out over ten years, will it still be “affordable living” in this proclaimed “monumental piece of art?

Also, note that, once again, the developer gets to hire his own engineer to inspect and sign off on his own project!

(UPDATE: DEVELOPER SAYS “DON’T BLAME ME FOR $8.7 MILLION REPAIR BILL”)

 

Trump’s Take on HOAs

Yep, it’s a question a lot of us have been asking: With The Donald being such a high-powered real estate developer, what does he think about owner associations? After all, he creates the covenants for all the condos he sells.

His take, linked below, is extremely interesting.

(link to Virginia blog on Trump and condo associations)

 

Drones! Drones! Drones!

I should charge money for psychic readings!  It was four or five years ago that I began predicting the advent of drones and that they would eventually be cheap enough for the boards of Homeowners Associations to start using them to inspect the most private part of your property. Your nude sunbathing or hot tub trysts could be played on the TV set at the HOA clubhouse and you probably wouldn’t win a legal case.

Well, so far I’m batting about 90% so far. The drones are here. They cost as little a four hundred bucks. And they’re popping up in thousands and thousands of places. Realtors are using them to advertise homes and neighborhoods. Terrorists are using them to interfere with commercial aircraft. Voyeurs are using them to videotape you and your lover on the backyard blanket. The FAA only controls drones in airspace over 1000 feet.

Privacy? Fugeddaboutit!

There’ve been a number of cases where homeowners have shot drones out of the air. The shooters usually end up being arrested and jailed. But it’s a whole new area of developing law and will probably take a decade or more to resolve. In the meantime even if a jury finds you not guilty you will have expended hundreds of thousands of dollars on legal fees.

(link to shoot a drone, go to jail, do not collect $200. It ain’t Monopoly money, folks!)

 

$50K Goal For GoFundMe And The Purple Playset

guest blog by Nila Ridings

The blog I wrote about the Raintree Lake HOA in Lee’s Summit, Missouri on August 10th mentioned discussions of a GoFundMe account for the Stout family legal defense. They are standing up and fighting against the HOA to keep their daughters’ purple playset.

Sure enough, somebody took the bull by the horns and set it up. The donations are rolling in. And the comments from some of the donors are VERY interesting. Even a Realtor is making mention of people being afraid to buy in HOAs. How many times have we heard that before?

It’s so sickening to think all that money will go to fund the college funds of children of two HOA lawyers. Or maybe a second home in Breckenridge, Bozeman, or Bonaire. Or, possibly a yacht for the Lake of the Ozarks. No matter what the outcome of the lawsuit in the courtroom, the lawyers come out the winners. This is how the HOA legal game is played. Everybody loses except the lawyers. The pay off is determined by how long the lawyers can keep the battle raging.

When I sold yellow page advertising years ago, I had hundreds of attorneys as clients. When I asked what was the best case I could bring them they would tell me a nasty divorce. Naive me, I asked how do you know it’s a nasty divorce? With a chuckle from the attorneys I kept hearing, “you get them to call and we KNOW how to make it nasty!” Something tells me the days of the nasty divorces have been replaced with nasty HOA legal battles. Unfortunately, in that arena, I am not at all naive!

http://www.gofundme.com/hekvt8xm