Arapaho Owners Association, Inc. and Kattalia v. Alpert

199 Vt. 553, 2015 Vt. 93
Supreme Court of Vermont·Decided July 10, 2015·No. 2014-120·Published

Opinion

2015 VT 93

Arapaho Owners Association, Inc. and Kattalia v. Alpert, et al. (2014-120)

2015 VT 93

[Filed 10-Jul-2015]

NOTICE:  This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports.  Readers are requested to notify the Reporter of Decisions by email at: JUD.Reporter@state.vt.us or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.

2015 VT 93

No. 2014-120

Arapaho Owners Association, Inc. and

Mark Kattalia

Supreme Court

On Appeal from

     v.

Superior Court, Windsor Unit,

Civil Division

Linna Alpert, et al.

December Term, 2014

Theresa S. DiMauro, J. (partial summary judgment); Harold E. Eaton, Jr., J. (final judgment)

Paul S. Gillies of Tarrant, Gillies, Merriman & Richardson, Montpelier, for Plaintiffs-Appellants.

Jon S. Readnour of Readnour Associates, P.C., Rutland, for Defendants-Appellees.

PRESENT:    Skoglund and Robinson, JJ., and Pearson and Tomasi, Supr. JJ., and

                     Morris, Supr. J. (Ret.), Specially Assigned

¶ 1.             SKOGLUND, J.   Initially, this case appeared to require reconciliation of language in a condominium declaration, the Vermont Condominium Ownership Act (VCOA), and the Vermont Common Interest Ownership Act (VCIOA).  After untangling the facts and the statutes, however, we resolve the matter in a more straightforward manner.  We affirm.

¶ 2.             The case began its journey through the legal system when the Board of Directors of the Arapaho Owners Association (“BOD”), appellant here, petitioned for a declaratory judgment seeking to reform the condominium’s declaration to reflect the actual number of condominium units built and to allocate ownership interests among the units.  The following facts are necessary to an understanding of the issues presented. 

¶ 3.             The Arapaho Village Condominium (“Arapaho Village”) in Ludlow, Vermont, was created in 1979, pursuant to the VCOA.  27 V.S.A. §§ 1301-1365.  According to the Declaration of Condominium (“Declaration”), when initially conceived, Arapaho Village was to consist of fifty units.  However, fifty-four units were actually built: five of the planned units each were subdivided into two “split” units, and one planned townhouse unit, 23F, was never built.  Unfortunately, the master schedule of units known as Schedule D, a provision of the Declaration, was never amended to reflect the number of units built.

¶ 4.             Sometime around 2008, issues were raised to the BOD concerning a disparity in assessments of common expenses, the claim being that owners of similar units were not paying the appropriate share of the same.  In addition, there existed potential questions concerning marketability of title due to the subdivision of certain units and the inclusion in the Declaration of the planned unit that was never built.  The BOD created a committee of owners to look at the issues and propose solutions.  The committee recommended that the BOD put two amendments to the Declaration before the unit owners.  The first proposed to amend the Declaration to reflect the number of units that were actually built and to recalculate each unit’s ownership share.  The second amendment proposed to change the formula for allocation of common expenses.  The voting results brought further controversy.

¶ 5.             The first amendment, which would recalculate ownership share, required 100% approval by a vote of the unit owners, which it failed to achieve.  The question of whether the amendment to the common-expenses allocation was adopted was muddled by the inconsistency created by the existence of the fifty-four units.  Relying on Article 15 of the Declaration, which provides that any provision in the Declaration may be amended by a 75% vote of all unit owners, the BOD believed only a 75% affirmative ownership-interest vote was required for the adoption of a new allocation formula.  According to the BOD, the amendment received votes representing over 75% of the total ownership interest of units actually constructed, but less than 75% of the scheduled ownership interests, due to the absence of anyone voting the allocated interest of un-built Unit 23F.   Notwithstanding the uncertainty of the voting results, the BOD declared the vote legally sufficient and prepared a document captioned “Amendment to Declaration of Unit Ownership of Arapaho Village Condominium Reallocating Annual Common Expenses” (“2010 Schedule D”) and filed it in the Ludlow Land Records.

¶ 6.             Attorneys were summoned.  Apparently, the BOD was informed by its counsel that the 2010 Schedule D was not legal, as it violated §§ 1306(b) and 1310 of the VCOA.  Further, the failure of the first amendment left the title problem unresolved.

¶ 7.             The BOD, on behalf of the Association, brought an action in the superior court seeking to reform the Declaration to reflect the units actually built and to restate each unit’s ownership share in the common areas according to the new formula that allegedly was adopted in the second amendment.  The BOD in its complaint also sought a declaratory judgment to clear title to the existing units.  Several owners of the split units, appellees here, oppose

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Arapaho Owners Ass'n, Inc. v. Alpert
2015 VT 93 (Supreme Court of Vermont, 2015)