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Case Law - Assessment

Diamond v. Superior Court

(2013)217 Cal.App.4th 1172  The appellate court held that an association's failure to strictly comply with all statutory pre-lien and pre-foreclosure notice requirements invalidated the association's assessment lien that was the subject of a judicial foreclosure action. The association argued that it had substantially complied with the statutory requirements, but the court ruled that substantial compliance is insufficient. The association was ordered to pay the debtor's costs incurred in defending against the foreclosure action.

Thies v. Law Offices of William A. Wyman

(1997) 969 F. Supp. 604  Homeowner plaintiffs alleged that the their association's legal counsel had violated provisions of the federal Fair Debt Collection Practices Act (FDCPA) while attempting to collect delinquent assessments. The defendant law firm filed a motion to dismiss the case on the grounds that the plaintiff homeowners did not owe a “debt” as that term is statutorily defined by the FDCPA and, therefore, could not seek relief under the FDCPA. In denying the motion to dismiss, the court held that homeowner association assessments fall within the definition of “debt” under the FDCPA.  

James F. O'Toole Co., Inc. v. Los Angeles Kingsbury Court Owners Association

(2005) 126 C.A.4th 549 The court ordered an association to impose a special emergency assessment to pay a $140,000 judgment obtained by a homeowner.  The court also ordered the appointment of a receiver to carry out the order. 

Park Place Estates Homeowners Association v. Naber

(1994) 29 Cal.App.4th 427 An owner may not withhold assessments owed to the association as a set off to his alleged claims against the association.

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