Friday, October 07, 2016

No Good Deed Goes Unpunished: HOA Informs Longtime Homeowner She Was No Longer Required To Pay Periodic Maintenance Fees Because Her Property Was Excluded From Original Condo Declaration; Homeowner Demands, Sues For & Wins Refund For 12 Years Of Past Payments

From a client alert from the law firm Womble Carlyle:
  • Discovering the origin of the aphorism that "No Good Deed Goes Unpunished" is difficult, but understanding its meaning is instantaneous. When doing a good act, do not expect a reward. In fact, the "reward" may be a punishment.

    In the case of Sanchez v. Cobblestone Homeowners Ass'n of Clayton, Inc. 2016WL4598554 (September 6, 2016), the defendant Cobblestone HOA (HOA) informed plaintiff that her property was not included in the HOA declaration. Accordingly, she was not required to pay association fees and she was not entitled to use of the amenities owned by the HOA, such as a pool and tennis courts. The HOA offered to incorporate plaintiff's property into the declaration so she could continue to pay dues and have access to the HOA amenities.

    The plaintiff declined the HOA's offer and requested a refund of the dues she had paid for the last 12 years.(1) A divided North Carolina Court of Appeals affirmed the District Court's judgment that plaintiff was entitled to a refund. No Good Deed Goes Unpunished.
For the rest of the story, see No Good Deed Goes Unpunished.
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(1) According to the court ruling, the amount of the requested refund for prior years' dues was $4,000.