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Sawgrass Ridge Condominium Association v. Louis J Alarie
335144
| Mich. Ct. App. | Jan 9, 2018
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Background

  • 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)
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Case Details

Case Name: Sawgrass Ridge Condominium Association v. Louis J Alarie
Court Name: Michigan Court of Appeals
Date Published: Jan 9, 2018
Docket Number: 335144
Court Abbreviation: Mich. Ct. App.