Hi-Country Estates v. MountainTop Properties
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The Supreme Court affirmed the judgment of the district court in favor of a homeowners' association in this dispute against Owner over unpaid assessments concluding that the HOA was entitled to collect the assessments because the HOA members in general had ratified the HOA's authority, holding that protective covenants that were not signed by the property owner are capable of ratification.
The HOA in this case sued the Owner of a lot within its boundaries for unpaid assessments. The Owner argued, in response, that the HOA's governing documents were unauthorized encumbrances on the lot and therefore violated the Wrongful Lien Act. The district court granted summary for the HOA. The Supreme Court affirmed, holding (1) protective covenants that were not signed by the property owner are voidable but not void as against public policy and are thus capable of ratification; (2) the district court correctly ruled that the HOA at the authority to assess the lot at issue and correctly calculated the unpaid assessments owing to the HOA; and (3) the HOA was entitled to its attorney fees on appeal.
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