2200 Residential Association v. Joseph Grace
72651-0
Wash. Ct. App.Jul 25, 2016Background
- Grace owns a residential condominium unit and is a member of the 2200 Residential Association; the Association levies monthly assessments to cover common expenses.
- The Association sued Grace in 2011 and 2013 to collect unpaid assessments; judgments were entered for assessments, fees, and costs, and the actions were consolidated in 2014.
- Grace filed counterclaims and defenses alleging the developer and agents committed fraud in initial unit sales, which he asserted voided the Association's governing authority, and alleged various procedural irregularities (meeting notice, minutes, elections, budgeting).
- The Association moved for summary judgment to dismiss Grace’s counterclaims and defenses, submitting the Condominium Declaration, board minutes, budget notices, and transaction reports showing Grace’s unpaid assessments since 2007.
- The trial court granted summary judgment with prejudice dismissing all of Grace’s claims; the court awarded the Association past-due assessments and reasonable attorney fees; the Association seeks fees on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Association had authority to impose and collect assessments | Grace: initial sales were fraudulent, so Association lacks legitimate governing documents and authority | Association: Condominium Declaration and ratified budgets authorize assessments; evidence of proper notice and board actions | Court: Association had authority; undisputed documentary evidence established authority and assessments were properly adopted |
| Whether procedural irregularities (meetings, minutes, budget process) precluded collection | Grace: Board failed to hold/notice meetings, keep minutes, run proper budget process | Association: Presented minutes, notices, budget summaries contradicting allegations | Court: Grace produced no admissible evidence to create a factual dispute; Association’s evidence controls |
| Whether Grace received notice of the 2011 annual meeting | Grace: His attorney did not receive notice; he did not get proper notice | Association: Grace designated attorney’s office for notice; records show he attended and participated | Court: Grace did not present evidence to rebut attendance and notice records; allegation insufficient to defeat summary judgment |
| Whether summary judgment was proper given the record | Grace: Genuine issues of material fact exist to avoid summary judgment | Association: Demonstrated absence of evidence supporting Grace’s claims; entitled to judgment as matter of law | Court: Affirmed summary judgment dismissing counterclaims and defenses with prejudice |
Key Cases Cited
- Michak v. Transnation Title Ins. Co., 148 Wn.2d 788 (2003) (standard of review and summary judgment principles)
- Young v. Key Pharm., Inc., 112 Wn.2d 216 (1989) (nonmoving party must present evidence on essential elements to survive summary judgment)
- Lake Chelan Shores Homeowners Ass'n v. St. Paul Fire & Marine Ins. Co., 176 Wn. App. 168 (2013) (moving party may show absence of evidence to shift burden)
- Panther Lake Ass'n v. Juergensen, 76 Wn. App. 586 (1995) (owners may not withhold condominium assessments as protest)