Arrowhead Lake Estates Homeowners Association, Inc. v. Ajay Aggarwal and Megha Garg

CourtSupreme Court of Missouri
DecidedJune 15, 2021
DocketSC98772
StatusPublished

This text of Arrowhead Lake Estates Homeowners Association, Inc. v. Ajay Aggarwal and Megha Garg (Arrowhead Lake Estates Homeowners Association, Inc. v. Ajay Aggarwal and Megha Garg) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arrowhead Lake Estates Homeowners Association, Inc. v. Ajay Aggarwal and Megha Garg, (Mo. 2021).

Opinion

SUPREME COURT OF MISSOURI en banc ARROWHEAD LAKE ESTATES ) Opinion issued June 15, 2021 HOMEOWNERS ASSOCIATION, INC., ) ) Appellant, ) ) v. ) No. SC98772 ) AJAY AGGARWAL and MEGHA GARG, ) ) Respondents. )

APPEAL FROM THE CIRCUIT COURT OF BOONE COUNTY The Honorable Kimberly Shaw, Judge

Arrowhead Lake Estates Homeowners Association, Inc. (hereinafter, “Arrowhead

Lake”) appeals from the circuit court’s judgment declining to award it attorney’s fees.1

Arrowhead Lake asserts it is entitled to attorney’s fees based upon the language of the

“Declaration of Covenants, Easements, and Restrictions of Arrowhead Lake Estates

Subdivision” (hereinafter, “the Declaration”). The circuit court’s judgment is affirmed. 2

1 Based upon the operative language of the documents in this case, this Court will use the term “attorney’s fees” for consistency, although the preference is “attorney fees.” 2 This Court has jurisdiction pursuant to article V, section 10 of the Missouri Constitution because it granted transfer after opinion by the court of appeals. Factual and Procedural History

Drs. Ajay Aggarwal and Megha Garg (hereinafter and collectively,

“Homeowner”) own property in Arrowhead Lake Estates. All of the property in

Arrowhead Lake Estates is subject to the Declaration. In April 2017, Homeowner

submitted plans to Arrowhead Lake for approval of additional exterior features, including

a swimming pool, a hot tub, a fire pit, a fence, and decking. Arrowhead Lake approved

Homeowner’s plans and communicated that, if there were additional changes, Arrowhead

Lake would need to be informed and the changes would need to be approved.

In August 2017, Arrowhead Lake learned Homeowner was constructing a

swimming pool building that was not part of the original plan submitted. Arrowhead

Lake sent a cease-and-desist letter, demanding Homeowner stop construction and remove

the building from the property. Homeowner refused.

Arrowhead Lake filed a petition in the circuit court for injunctive relief.

Arrowhead Lake sought to have the unapproved building removed and to be awarded

attorney’s fees and costs associated with the litigation.

Following a bench trial, the docket sheets state the circuit court considered all of

the evidence and made the preliminary injunction permanent. Further, both parties were

ordered to pay their own attorney’s fees. The docket sheets then state the circuit court

clarified its judgment, finding in Arrowhead Lake’s favor on all counts and ordering

Homeowner to pay $83,677.60 in attorney’s fees. Arrowhead Lake and Homeowner

filed motions for amendment and clarification of the judgment and proposed judgments.

The docket sheets then indicate the circuit court reviewed both parties’ motions for

2 amendment and clarification of the judgment and determined each party should bear its

own attorney’s fees. The circuit court then adopted Arrowhead Lake’s proposed

judgment, but physically placed a series of “x”s over the line awarding it attorney’s fees.

The circuit court ordered Homeowner to remove the unapproved building and taxed all of

the court costs to Homeowner. The circuit court did not award Arrowhead Lake

attorney’s fees. Arrowhead Lake appeals. 3

Request for Attorney’s Fees

Generally, not every successful litigant is awarded attorney’s fees. Berry v.

Volkswagen Grp. of Am., Inc., 397 S.W.3d 425, 431 (Mo. banc 2013). “Missouri courts

follow the American Rule, which provides that, in the absence of statutory authorization

or contractual agreement, with few exceptions, parties bear the expense of their own

attorney fees.” Wilson v. City of Kan. City, 598 S.W.3d 888, 896 (Mo. banc 2020).

Arrowhead Lake argues the circuit court abused its discretion in not awarding it

attorney’s fees and litigation expenses because the Declaration provides prevailing parties

are entitled to attorney’s fees and litigation expenses. 4

The Declaration is a contract. DeBaliviere Place Ass’n v. Veal, 337 S.W.3d 670,

676 (Mo. banc 2011). Accordingly, contract law principles apply when interpreting the

Declaration. Trs. of Clayton Terrace Subdivision v. 6 Clayton Terrace, LLC, 585 S.W.3d

269, 280 (Mo. banc 2019). In interpreting the Declaration, this Court seeks to determine

3 Homeowner also filed a notice of appeal, but the cross-appeal was abandoned. 4 Arrowhead Lake also filed a motion for attorney’s fees on appeal, which was taken with the case. The motion for attorney’s fees on appeal is overruled. 3 “the intent of the parties and give effect to that intention.” Veal, 337 S.W.3d at 676. To

ascertain the parties’ intent, contract language is given its plain, ordinary, and usual

meaning. 6 Clayton Terrace, LLC, 585 S.W.3d at 280. “When a contract is

unambiguous, the intent of the contract is discerned solely from the contract’s language.”

Arbors at Sugar Creek Homeowners Ass’n v. Jefferson Bank & Tr. Co., 464 S.W.3d 177,

183 (Mo. banc 2015). “Additionally, each term of a contract is construed to avoid

rendering other terms meaningless.” Dunn Indus. Grp., Inc. v. City of Sugar Creek, 112

S.W.3d 421, 428 (Mo. banc 2003).

Arrowhead Lake states there are two Declaration provisions entitling it to receive

attorney’s fees, costs, and litigation expenses. 5 Arrowhead Lake argues it was the

prevailing party, and the circuit court’s failure to award it attorney’s fees, costs, and

litigation expenses was erroneous.

Section 18(d) Allocation of Costs Resolving Claims

Arrowhead Lake argues because the Declaration uses mandatory language to

provide for the prevailing party’s attorney’s fees and costs, the circuit court is required to

award it attorney’s fees and costs. Section 18(d)(2) of the Declaration states:

Each party shall bear their own costs (including the fees of its attorney or other representative) incurred after the Termination of Mediation under subparagraph c, (3), and shall share equally in the costs of conducting any voluntary arbitration proceeding (collectively, “Post Mediation Costs”), except as otherwise provided in this Declaration; provided, however, if the Claim is litigated in whole or in part, the prevailing party shall be entitled to receive an aware [sic] of attorney’s fees and court costs as deemed appropriate by a court of competent jurisdiction.

5 While Arrowhead Lake’s point on appeal claims it should have been awarded litigation expenses, it never articulates a reason supporting this proposition. 4 Accordingly, the Declaration’s plain language provides an exception to the

American rule for attorney’s fees. Wilson, 598 S.W.3d at 896. “Entitle” is defined as “to

give a right or legal title to: qualify (one) for something : furnish with proper grounds for

seeking or claiming something.” WEBSTER’S NEW INTERNATIONAL

DICTIONARY 758 (3d ed. 2002). This language clearly and plainly allows a circuit

court to award attorney’s fees and court costs to a prevailing party. The Declaration’s

language providing “the prevailing party shall be entitled to receive” an award qualifies

the prevailing party to receive attorney’s fees.

Arrowhead Lake and the dissenting opinion argue this is the end of the analysis

and the circuit court is required to award attorney’s fees to Arrowhead Lake.

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Related

Sheppard v. East
192 S.W.3d 518 (Missouri Court of Appeals, 2006)
Sweet v. Sweet
154 S.W.3d 499 (Missouri Court of Appeals, 2005)
Ritchie v. Allied Property & Casualty Insurance Co.
307 S.W.3d 132 (Supreme Court of Missouri, 2009)
Dunn Industrial Group, Inc. v. City of Sugar Creek
112 S.W.3d 421 (Supreme Court of Missouri, 2003)
DeBaliviere Place Ass'n v. Veal
337 S.W.3d 670 (Supreme Court of Missouri, 2011)
Curry Investment Company v. James B. Santilli
494 S.W.3d 18 (Missouri Court of Appeals, 2016)
Hills v. Greenfield Village Homes Ass'n
956 S.W.2d 344 (Missouri Court of Appeals, 1997)
Berry v. Volkswagen Group of America, Inc.
397 S.W.3d 425 (Supreme Court of Missouri, 2013)
Desu v. Lewis
427 S.W.3d 843 (Missouri Court of Appeals, 2014)
Arbors at Sugar Creek Homeowners Ass'n v. Jefferson Bank & Trust Co.
464 S.W.3d 177 (Supreme Court of Missouri, 2015)
Davis v. Johnson Controls, Inc.
549 S.W.3d 32 (Missouri Court of Appeals, 2018)

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Arrowhead Lake Estates Homeowners Association, Inc. v. Ajay Aggarwal and Megha Garg, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arrowhead-lake-estates-homeowners-association-inc-v-ajay-aggarwal-and-mo-2021.