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That v. Alders Maintenance Ass'n
142 Cal. Rptr. 3d 458
Cal. Ct. App.
2012
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Background

  • Plaintiff Dinh Ton That is a homeowner in The Alders, governed by Alders Maintenance Association.
  • In February 2009 a recall election was held but failed to achieve quorum and effectively concluded without adjournment.
  • Ton That filed a small claims action seeking penalties and injunctive relief related to the recall proceedings.
  • He then pursued a writ of mandate, which the superior court denied, and subsequently filed this civil action.
  • The trial court sustained demurrers to the FAC on statute of limitations grounds and to a second amended complaint under UCL, and awarded defendant attorney fees for frivolous conduct.
  • Ton That appeals, challenging the demurrers, the UCL ruling, and the attorney-fee award.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Is HOA an unlawful business under UCL? Ton That argues the HOA operates as a business and falls under UCL. Alders maintains the HOA is not a business for UCL purposes and the claim fails as a matter of law. HOA is not a business under UCL in this context.
Whether attorney fees can be awarded to the prevailing party under Civ. Code § 1363.09(b) where the action is frivolous but the statute does not expressly authorize fees to associations. Ton That contends the statute allows attorney fees for prevailing associations when frivolous. Alders argues the statute only allows costs to a prevailing association and law does not authorize attorney fees. Statute does not authorize attorney-fee awards to prevailing associations.
Is the first Civil Code § 1363.09 claim time-barred by a one-year statute of limitations? Ton That argues estoppel or other theories tolling the period. Alders contends the action is time-barred by the one-year limit. First claim barred by the one-year statute of limitations.

Key Cases Cited

  • O’Connor v. Village Green Owners Assn., 33 Cal.3d 790 (1983) (association treated as business establishment in Unruh Act context)
  • Kasky v. Nike, Inc., 27 Cal.4th 939 (2002) (UCL aims to protect fair competition; not all association conduct qualifies)
  • Cortez v. Purolator Air Filtration Products Co., 23 Cal.4th 163 (2000) (UCL not a catch-all substitute for tort/contract actions)
  • California Teachers Assn. v. Governing Bd. of Rialto Unified School Dist., 14 Cal.4th 627 (1997) (statutory interpretation; reluctance to rewrite statutes)
  • Blank v. Kirwan, 39 Cal.3d 311 (1985) (demurrer standards and de novo review on appeal)
  • Turner v. Vista Pointe Ridge Homeowners Assn., 180 Cal.App.4th 676 (2009) (publicly cited in UCL context involving associations)
Read the full case

Case Details

Case Name: That v. Alders Maintenance Ass'n
Court Name: California Court of Appeal
Date Published: Jun 15, 2012
Citation: 142 Cal. Rptr. 3d 458
Docket Number: No. G044799
Court Abbreviation: Cal. Ct. App.