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Plaza Condominium Ass'n v. Wellington Corp.
920 S.W.2d 51
Ky.
1996
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*1 Vallandingham tective recited sufficient facts magistrate’s supported finding cause,

probable and issuance of the warrant. supported probable

Those facts cause de- appellant

termination that was in fact the

person brought develop- in the film who

ing, where the and that he lived affidavit said

that he lived. There was no error. reasons, foregoing judgment

For the Court is affirmed. Kenton Circuit

STEPHENS, C.J., BAKER,

GRAVES, KING, LAMBERT, STUMBO WINTERSHEIMER, JJ., concur. ASSOCIATION,

PLAZA CONDOMINIUM Schneider, P.S.C., Ziegler &

INC. (Deceased), Ap- Brandt

Successor T.J.

pellants,

v. CORPORATION,

WELLINGTON

Appellee.

No. 95-SC-211-DG.

Supreme Kentucky.

April 1996.

52 Wellington Corpora- appellee, the

tion, creating a master deed a 51- recorded project unit condominium known as River- County, Kentucky. At side Plaza Kenton time, appellee incorporat- or about the same entity Plaza ed an known as Condominium Association, Inc., litiga- appears which in this appellants. tion as The condominium associ- provid- co-owners as ation was the council of 381.810(4) in the and ed for statutes. KRS The initial board of directors KRS 381.870. developer two of consisted of the lawyers. by-laws adopted by The the initial voting granted enhanced board of directors rights developer appellee so that was given during unit five votes for each unsold years other had the first three while owners only per unit. The one vote condominium voting right during effect of this enhanced years give develop- the first three was to the autonomy, although it is contended er virtual challenged nor that such control was neither exercised. by-laws and the of the

The master deed developer, ap provided that the association herein, required pay only would be pellee expenses. This circumstance pro 25% of rata inception project, the prevailed from the Baker, Elliston, Zie- Joseph L. Sharon S. ap July until December of 1991 when Schneider, P.S.C., Covington, Ap- for gler & require ap pellants by-laws to amended the pellants. monthly pellee pay assess 100% of Woltermann, “Brook” James G. John S. disparity ment. Based on the between Adams, Stepner, Brooking, Brooking, Wol- payments by appellee and all other made Florence, Dusing, Appellee. termann & owners, appellant sought recov condominium $67,000 plus ery approximate sum of of the LAMBERT, Justice. litigation interest from the commencement attorney’s fees. por upon to construe We are called Act, Property the Horizontal Law tions of Initially, must review KRS 381.870. we seq., 381.805, et particular and in KRS provides that This statute contributions prescribes contribute in are bound to co-owners [a]ll toward common ex required of co-owners percentage of com- with their accordance Appellants contend penses, KRS 381.870. expenses of ad- interest toward mon appellee, develop unlawful for that was maintenance, repairs and of ministration er, grant a 75% reduction from its itself general of the replacement reserves expenses, thus pro share of common rata case, elements, and, common Appel increasing to other owners. the cost elements of the limited common insists that the reduction but lee concedes any expenses other regime, and toward permits departure from strict the statute the master deed lawfully assessed under pro and further contends rata division by the council of co-owners. and/or expense payment the event its reduced adjust- provides “for the claim Id. The unlawful, statute also to have been determined contri- co-owners for by the council of ments is barred laches. assert expenses for which co-owners proportioned upon a of Most of butions consideration area, are and occu- number of bound to contribute fixed a combination of floor are generating little such occupants, public pancy and ac- has to do with demand on utilities Thus, rule. pro is the cessibility to Id. rata distribution limited common elements.” costs. however, expenses, limited For a class of this courts Commonwealth *3 occupancy is to costs and the statute relevant spoken not have heretofore to the adjustment to this a reflect permits limited statute. Monarch v. construction of this Cf. remand, evidence Upon the circumstance. Co-Owners, Lodge Condominium Council of statutory light in of the be considered shall Inc., (1985) Ky.App., 684 S.W.2d 319-20 reduction, any, appropriate an if factors and (holding specific that a co-owner could seek granted appellee. performance against the council of co-owners condominium). complete repairs In to to a Appeals, appellants’ In the of view, however, unduly the not our statute is respect statutory to con contentions with complex. overriding all principle The is that essentially accepted. were Howev struction co-owners, by owner whatever means their er, had court determined that that arose, according ship are to contribute to the by virtue of unreason guilty of laches been percentage departure of their interest. A disadvantage appellee. delay to of able the percentage permit from such contribution is to the that failure contest The court believed upon statutory of the fac ted consideration July developer’s treatment from of favorable tors, an not her escape but owner his or litigation of 1986 until commencement this the expenses share of waiver. One seek enough was to bar the claim. adjustment upon statutory ing an based the parties intensely debate whether there The obligated factors is to the rea demonstrate and, so, delay an unreasonable if wheth- was sought. sonableness of the reduction justified by appellee. the actions er it was of begins proposition the that all statute with Appeals court of found The trial and Court pro any owners shall contribute rata and justification delay for the no reasonable seeking depart owner the to therefrom bears say they wrong point. on we cannot were that demonstrating of burden entitlement to However, necessary plea to a successful of reduction. prejudice is the element of laches additional foregoing applied the case When in the delay. The court as a result of the trial bar, granted at the reduction the devel- 75% if prejudice by concluding that found such oper cannot be harmonized with the statute. timely developer given more the had been scheme, statutory In view of the it is virtual- claim, “simply would have notice ly inconceivable that such a re- substantial recouped by increasing that the sale cost justified. duction one owner could be price for each of the individual condominium Appeals recognized of as fol- The Court dis- units.” The Court of did not lows: agree. say, Needless to the in the mas- agree point the On this we cannot with of ter deed itself for favorable treatment is no reason to believe courts below. There developer’s unoccupied the units did not any appellee sold of condominium that comply with this statute. It also does bear. for less than the market would units adjustment appear the that the made general, market forces determine council, made, actually propor- when was prop- property real and the owner of price of upon tioned a consideration of the statuto- recoup costs erty ability has no to additional factors, ry in the fact particularly view of by “adding price.” to the simply it on sale only belonging to the that vacant units any cost could are confident that We developer given assessment were favorable trial added on. The have been added on was treatment. finding developer “simply that court’s adjusted upwardly purchase Wellington have Plaza Condominium Assoc. v. would 93-CA-001049-MR, price units to offset Corp., Ky.App., 93-CA- condominium 1995). (Feb. 001216-MR, clearly expense” erroneous. To slip op. at 3-4 additional Appeals accepted extent the Court of case should be remanded for additional evi- view, it, too, dence, Thereafter, was in error. parties if the so desire. findings trial court should render new Appellants’ money claim is for dam making fact and conclusions of law. In such ages yet and no statute of limitations has fact, findings of the court shall consider the such, delay present run. As case principles regard as set forth herein with to consequence is not appel- of such as to harm appellee construction If of KRS 381.870. lees to the extent that this claim should not is able to show its entitlement relief based necessary engage be heard. It is not in factors, statutory may grant on the the court an extensive review the doctrine of laches. Otherwise, adjustment. a reasonable as we say It is sufficient to that this doctrine serves herein, pro have said rata contribution is the party bar claims circumstances where a rule applied. which should be engages delay preju unreasonable *4 dice of rendering inequitable others to litigation, At the commencement of this party previous allow that a reverse course appellants obtained an assessment lien Mussman, Ky., of action. See Kendall v. 247 against four units which were still owned (1952). 502, expi S.W.2d 503-04 Prior to the appellee. agreement An was reached be- however, ration period, of the limitation one parties granted mortgage tween the a claiming delay a bar based on must also show upon upon one unit and the lien was released prejudice. proposition This was well articu court, holding three. The the other trial that McCann, 195, Ky. lated in Denison v. 303 payments to no from were entitled 248, (1946), quoting City 197 S.W.2d 249 of statute, appellee under the or because of the 101, Gillispie, Ky. Paducah v. 273 115 laches, doctrine of ordered release of the 574, (1938), S.W.2d 575 as follows: mortgage. Appellants now insist that this laxness; general ‘Laches’ in its definition is was error. delay asserting right. an in unreasonable a terms, By maturity the date of legal significance, merely In its it is not mortgage September was the earlier of delay, delay injury but that results in or unappeala- or “the date of the final and disadvantage party. a works the adverse judgment” in It ble this action. is obvious Thus there are two elements to be consid- yet that neither occasion has arrived and our delay ered. As to what is unreasonable is that this cause must be re- determination question always dependent a on the facts requires versed and remanded that we like- particular case. the result- Where mortgage upon wise reinstate the the condo- ing great, disadvantage harm or a rela- agreement which minium unit. The resulted period delay may tive of constitute a brief fully negotiated by mortgage in lien was period defense while a similar under other parties they agreed it should be may equi- circumstances not. What is the appellants. in This construed favor of ty controlling question. of the ease is the decision in Link Handle Co. v. Court’s O.P. chancery Courts of will not become active (1968), Wright, Ky., holds 429 S.W.2d 842 conscience, faith, except good on the call of judiciary that “it is not the function of the diligence. and reasonable The doctrine of change obligations of a contract which is, injustice part, laches in based on the parties have fit to make.” Id. at seen might or will result from the enforce- § (quoting 610A 847 Williston on Contracts neglected right. ment of a (3d ed.)). (citations omitted). Here we have deter- appellants may have been mined that while claim, appel part a final of their As delay asserting rights, ap- in guilty of their attorney’s lants’ seek fees. Under KRS pellee significant prejudice, no cer- suffered 381.990(5), party if a such fees are available tainly consequence equita- none of such as to by-laws of the council of co- violates the bly appellants’ claim. bar set forth in 381.860. The owners as KRS attorney’s simply relating to fees do Upon our that reversal statutes determination apply in where a co-owner required, we must also not circumstances of the courts below pursuant by-laws, even remedy right to the what should follow. The claims determine clearly its evaluation though to be court was erroneous such claim be determined of the law. application the facts invalid. above, this remanded As set forth cause is pro- Kenton further Circuit Court for

ceedings herewith. consistent GRAVES, KING,

STEPHENS, C.J., and

LAMBERT, STUMBO, JJ., concur.

WINTERSHEIMER, J., dissents opinion. separate WHITTAKER, Acting Director L. Robert BAKER, J., sitting. Fund, Appellant, Special WINTERSHEIMER, Justice, dissenting. v. major- respectfully I must dissent from the Helmers; Jeffrey LANE; J. Allan John

ity opinion the Court of because Docks, Inc.; Coal and Work- Owensboro properly the decision the circuit affirmed Board, Compensation Appellees. ers’ solely based on the doctrine of laches court No. 95-SC-63-WC. delay bringing of the Association in *5 significantly prejudice so action as to Supreme Kentucky. Court to do opposing party. Laches is a failure April 1996. something or to which should have been done right enforce at a time. original

The Association has abandoned its regard

argument Appeals the Court

to laches and now seems claim that apply not at all

doctrine does because money legal claim

action includes a for a

judgment equitable as well as foreclosure

under the terms of KRS 381.883. stated, legali- Appeals

theAs Court of ques-

ty highly of the discount is

tionable, comply and it with governing condominium-property re-

statutes

gimes. Certainly sympathy be en- some can Association,

gendered for the the under- issue,

lying legality Wellington’s that is the

scheme, However, may merit criticism. case, condo- property

kind of horizontal as a owners, dispute governed

minium between is be that all

by contract law. It must assumed original agreement com-

parties to the were consenting. The mani-

petent and claim of addition, injustice unconvincing.

fest as problems preservation with

this case has delay.

aswell responsibility to re- of this courts, the other not to the decisions of

view Consequently, on bal-

discover new facts.

ance, say I cannot Court of deciding the error in

committed reversible circuit laches or

ease on basis of

Case Details

Case Name: Plaza Condominium Ass'n v. Wellington Corp.
Court Name: Kentucky Supreme Court
Date Published: Apr 25, 1996
Citation: 920 S.W.2d 51
Docket Number: 95-SC-211-DG
Court Abbreviation: Ky.
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