Gables at Sterling Village Homeowners Ass’n v. Castlewood-Sterling Village I, LLCAnnotate this Case
In this action alleging, inter alia, breaches of fiduciary duty and the implied warranty of habitability, the Supreme Court affirmed the district court’s grant of summary judgment and a directed verdict against The Gables at Sterling Village Homeowner’s Association (the Association) but vacated the district court’s award of attorney fees.
The Association filed this action against the property developer who built the Gables at Sterling Village, the builders, and their principles after property owners began to notice problems in the planned unit development. The property owner asserted a counterclaim for indemnification. The district court granted (1) summary judgment against the Association, concluding that the Association lacked contractual privity with the property developer; (2) the property developer’s motion for directed verdict on the Association’s claim for breach of fiduciary duty; and (3) the property developer’s post-trial motion for indemnification of attorney fees. The Supreme Court affirmed in part and vacated in part, holding (1) the district court did not err in granting summary judgment and directed verdict; but (2) the property developer should have tried his indemnification claim rather than raise it by post-trial motion.