3710 Irongate, Llc, V. Unit Owners Association Of Judson Plaza Condo

CourtCourt of Appeals of Washington
DecidedNovember 10, 2025
Docket86717-2
StatusUnpublished

This text of 3710 Irongate, Llc, V. Unit Owners Association Of Judson Plaza Condo (3710 Irongate, Llc, V. Unit Owners Association Of Judson Plaza Condo) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
3710 Irongate, Llc, V. Unit Owners Association Of Judson Plaza Condo, (Wash. Ct. App. 2025).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

3710 IRONGATE, LLC, a Washington No. 86717-2-I limited liability company; LEE E. McDONALD, an individual; and ARSHIA FATHALI, a married person, DIVISION ONE

Appellants,

v. UNPUBLISHED OPINION

UNIT OWNERS ASSOCIATION OF JUDSON PLAZA CONDOMINIUM, a Washington miscellaneous and mutual corporation,

Respondent.

SMITH, J. — In 2021, the Unit Owners Association of Judson Plaza

Condominium (Association) levied a $2.2 million special assessment against all

condo units to finance building repairs. Each assessment was based on the

owner’s allocated percentage. Three condo unit owners, 3710 Irongate, LLC,

Lee McDonald, and Arshia Fathali (Owners), sued the Association for declaratory

judgment, injunctive relief, and an accounting. The Owners contended the

Condominium’s Declaration did not contemplate the assessment to be allocated

based on preestablished percentage liability, but instead the assessment should

be allocated based on the benefit to the units.

The Association counterclaimed for judgment against each owner and for

foreclosure of its liens on unpaid assessments. On competing summary No. 86717-2-I/2

judgment motions, the trial court denied the Owners’ motion, granted the

Association’s motion, and entered judgments and decrees of foreclosure. The

court denied the Owners’ motion for reconsideration and McDonald's motion to

vacate. Irongate appeals, McDonald appeals pro se, and Fathali adopts the

arguments of the other appellants. Because the Owners failed to produce

sufficient evidence to create material issue of fact concerning the allocation of the

special assessment, we affirm the trial court’s rulings.

FACTS

Background

Judson Plaza Condominium is a mixed-use building in Bellingham,

Washington, consisting of commercial and residential units. The Condominium is

governed by the “Declaration of Condominium Subdivision and Covenants,

Conditions, Restrictions and Reservations for Judson Plaza” (Declaration). The

Condominium is three stories high and consists of 15 units—ten residential and

five commercial. The third-floor units have private rooftop decks and gardens

only accessible from within each third-floor unit. Irongate owns two second floor

condominiums, unit #200 and unit #201; McDonald/Grover1 owns unit #100, and

Fathali owns unit #101.2 The building is comprised of, in relevant part, units,

common elements, and limited common elements.

1In July 2022, McDonald sold unit #100 to third party defendants Nathan and Pandora Grover without satisfying the Association’s lien for unit #100’s unpaid Special Assessment allocation. 2 Irongate, McDonald, and Fathali are collectively known as the “Owners.”

2 No. 86717-2-I/3

Common elements are portions of the Condominium other than the units

that are “necessary or convenient to its existence, maintenance, and safety, or

normally in common use.” Common elements include the roofs, foundations,

supports, main walls, stairways, and “all other structural parts of the building.”

Limited common elements are “those portions of the Common Elements

allocated to and reserved for the exclusive use of one or more, but fewer than all

of the Units.” Examples of limited common elements include private decks, roof

gardens, and outside fixtures designed to serve a single unit, such as awnings

and window boxes.

Under the Declaration, each unit is allocated an undivided interest in the

common elements. This allocation is determined by size of the unit relative to

other units and is expressed as a percentage. Each unit’s allocated interest is

used to determine what proportion of the “common expenses” the unit is

assigned. Common expenses are “expenditures made by or financial liabilities of

the association, together with any allocation to reserves.”

When maintenance, replacement, or repair is required on common

elements or limited common elements, the costs are a common expense. An

exception occurs when “[a]ny Common Expense or portion thereof benefitting

fewer than all of the Units shall be assessed exclusively against the Units

benefited.”

In 2017, the Association hired a building consultant to “investigate the

building envelope for any deficiencies related to the weather resistant barrier.”

J2 Building Consultants conducted the investigation in June 2017 and found the

3 No. 86717-2-I/4

Condominium was “displaying signs of weathering, construction defect and

contains many locations where standard building practices were not followed and

not to industry/code standards.” J2 recommended a full remediation be

performed, including repairing damage to the trim, windows, and decks. The

Association hired Charter Construction, Inc., to perform the remodel.

In February 2021, the Association levied a $2,200,000 special assessment

against all condo units to finance the repairs. The assessment was allocated to

the unit owners on a pro rata basis based on their allocated interest for common

expense liability. The Owners’ shares of the special assessment were as

follows:

3710 Irongate unit #200 1 14.11% $310,420.00

3710 Irongate unit #201 5.63% $123,860.00

McDonald/Grover unit #100 8.88% $195,360.00

Fathali unit #101 3.60% $79,200.00

Procedural History

In September 2021, the Owners initiated a complaint for declaratory

judgment and injunctive relief against the Association for breach of the

Declaration. The Owners alleged the Association violated the Declaration by

inappropriately allocating costs. The Owners asserted the special assessment

should have been allocated pursuant to section 10.4.1(a) of the Declaration,

which states, “Any Common Expense or portion thereof benefitting fewer than all

of the Units shall be assessed exclusively against the Units benefitted.” The

4 No. 86717-2-I/5

Owners also sought an injunction preventing the Association from collecting

funds from them and requested an accounting of the funds paid on the

Association for the special assessment. The Association asserted counterclaims

seeking judgment against the Owners for the respective shares of the special

assessment, as well as foreclosure of the Association’s liens for those unpaid

assessments.

In October 2021, the Owners issued their first set of interrogatories to the

Association. In response to questions concerning the scope of the work on each

individual unit, the Association stated: No work is being done on this individual unit itself. Work is being done to the Common Elements and Limited Common Elements that are the responsibility of the Association. That work includes, but is not limited to, work on the roofs, main walls, exterior walls, structural parts of the building outside the boundaries of the units, parking garage, side decks, roof decks/gardens, awnings, railings, exterior windows and window framing, and exterior doors and door framing. The work and costs are described in detail in the J2 reports, plans, the Charter contract, and budget(s) produced in response to Request Nos. 2 and 3.

In January 2023, the parties brought cross motions for summary

judgment. The Association’s summary judgment motion claimed the Owners

lacked evidence to support their case, the special assessment was properly

allocated on a pro rata basis, the Owners did not have a right to an accounting

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