Ballard v. 1400 Willow Council of Co-Owners, Inc.
430 S.W.3d 229
| Ky. | 2013Background
- Ballard sued the Council of Co-Owners over replacement and cost of Ballard’s wall of windows in her penthouse.
- Disputes arose whether windows were Ballard’s responsibility or common elements under the Master Deed.
- Council argued co-owners own their windows; Ballard argued the wall is a common element or the Council’s fault.
- Council entered Ballard’s unit and replaced the wall in 2004 after lis pendens and a lien were filed.
- Jury found replacement needed due to Council’s failure to maintain exterior and awarded Ballard $54,000 for condo fees; other damages were denied.
- Court proceedings culminated in partial affirmance/reversal by the Kentucky Supreme Court on multiple issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Slander of title statute of limitations | Ballard argued 5-year limit applies | Council argued 1-year limit applies | Five-year limit applies; Montgomery overruled to extent conflicts. |
| Privilege of lis pendens and lien statements | Ballard contends lis pendens not privileged | Council asserts absolute/qualified privilege | Lis pendens is (qualified) privilege, but jury found malice; claim allowed. |
| Fiduciary duties to individual owner | Council owed Ballard individual fiduciary duties | Fiduciary duties run to the corporation, not individuals | Council may owe individual duties; remanded to dismiss fiduciary claim; but affirmed some related findings. |
| Damages for breach of fiduciary duty | Damages for failed maintenance and bad faith | Damages not properly awarded for fiduciary breach | Damages for $54,000 affirmed; remanded for proper judgment on prevailing party. |
| Attorney’s fees under Master Deed | Ballard should recover fees as prevailing party | Fees to be determined after new judgment | Remanded to determine prevailing party and fee entitlement anew. |
Key Cases Cited
- Bonnie Braes Farms, Inc. v. Robinson, 598 S.W.2d 765 (Ky.App.1980) (special damages required in slander of title; constructively relevant to limitations discussion)
- Montgomery v. Milam, 910 S.W.2d 237 (Ky.1995) (one-year SOL for slander of title (overruled by five-year rule))
- Albertson v. Raboff, 46 Cal.2d 375, 295 P.2d 405 (Ca.1956) (lis pendens privileged as publication in judicial proceeding; controversial scope here)
- Lone v. Brown, 199 N.J.Super. 420, 489 A.2d 1192 (App.Div.1985) (lis pendens publication treated as privileged in some jurisdictions)
- Pond Place Partners, Inc. v. Poole, 351 S.C. 1, 567 S.E.2d 881 (S.C.Ct.App.2002) (persuasive on injurious falsehood and slander of title analysis)