Tract 19051 Homeowners Ass’n v. Kemp
Annotate this CaseA homeowners association and some of its individual members (collectively, “Plaintiffs”) filed this suit against a homeowner alleging (1) their housing development tract, which included the homeowner’s property, was a common interest development within the meaning of the Davis-Sterling Common Interest Development Act (“CID Act”); and (2) pursuant to the CID Act, the homeowner violated valid applicable restrictions through his ongoing remodeling. The trial court rendered judgment in favor of Defendants, concluding that the tract did not constitute a common interest development. The court awarded awarded attorney fees to Defendants. The Court of Appeal (1) affirmed the judgment in favor of Defendants on the merits; but (2) reversed the award of attorney fees, concluding that because the courts had found the CID Act was not applicable, attorney fees were improperly awarded under former Cal. Civil Code 1354(c), a provision of the CID Act. The Supreme Court reversed the portion of the Court of Appeal’s judgment insofar as it reversed the attorney fee award, holding (1) the award of attorney fees was supported by the language of the statute; and (2) denying Defendants an award under the statute when they were the prevailing party would defeat the legislative intent underlying the statute.
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