Sawgrass Ridge Condominium Association v. Louis J Alarie
335144
| Mich. Ct. App. | Jan 9, 2018Background
- Sawgrass Ridge Condominium Association (plaintiff) sued unit owners Louis and Marilyn Alarie (defendants) for modifying their deck without required approvals under the condominium instruments.
- The condominium is governed by a recorded master deed and bylaws that require prior written Board approval for unit exterior alterations and require a majority of co-owners to approve any civil action proposed by the Board before suit is filed.
- The Board authorized filing suit before it was filed; after filing, a written “consent resolution” signed by a majority of co-owners ratified the Board’s decision and waived formal meeting/notice.
- The trial court granted plaintiff summary disposition under MCR 2.116(C)(10), concluding the post-filing written consents validated the suit.
- The Court of Appeals reversed, holding the bylaws require co-owner approval obtained at a duly called and held members’ meeting prior to commencing litigation; the post-filing written consent did not satisfy those formalities.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Board approval alone authorized the Association to file suit | Board authorization permitted suit; Board already approved litigation | Bylaws require prior approval of a majority of co-owners, not just the Board | Board approval alone insufficient; bylaws require co-owner approval |
| Whether post-filing written consent (member signature form) ratified suit despite no meeting | Post-filing written consents (under Nonprofit Corp. Act) ratified and validated the action | Ratification must follow the same formalities as authorization; bylaws require approval at a duly called and held meeting | Post-filing consent did not meet bylaws’ meeting-and-vote formalities and cannot ratify the suit |
| Whether statutory corporate consent provision overrides restrictive bylaws | Cites MCL 450.2407(3) allowing action by written consent without meeting | Bylaws control; parties may require stricter formalities than statute permits | Bylaws control; nonprofit-act provision does not override recorded bylaws requiring meeting vote |
Key Cases Cited
- Tuscany Grove Ass’n v. Peraino, 311 Mich. App. 389 (2015) (bylaws recorded in condominium instruments govern administration and required formalities for member approval)
- DeFrain v. State Farm Mut. Auto. Ins. Co., 491 Mich. 359 (2012) (contract interpretation principles; give words ordinary meaning and avoid nugatory constructions)
- Altman v. Meridian Twp., 439 Mich. 623 (1992) (rules for construing statutory and contractual language)
- Rosswood v. Brentwood Farms Dev., Inc., 251 Mich. App. 652 (2002) (master deed and bylaws function as contract between owners and association)
- David v. Serges, 373 Mich. 442 (1964) (principle that ratification can validate unauthorized agent acts but must observe required formalities)
