Artus v. Gramercy Towers Condo. Ass'n

228 Cal. Rptr. 3d 496, 19 Cal. App. 5th 923
CourtCalifornia Court of Appeal, 5th District
DecidedJanuary 24, 2018
DocketA147297
StatusPublished
Cited by24 cases

This text of 228 Cal. Rptr. 3d 496 (Artus v. Gramercy Towers Condo. Ass'n) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Artus v. Gramercy Towers Condo. Ass'n, 228 Cal. Rptr. 3d 496, 19 Cal. App. 5th 923 (Cal. Ct. App. 2018).

Opinion

Banke, J.

*498*926After members of a condominium homeowner's association (HOA) voted by a very substantial majority to eliminate the practice of cumulative voting, plaintiff Kazuko K. Artus, who owns three units in the Gramercy Towers condominium development, sued the HOA. Artus claimed, among other things, that aspects of the election violated provisions of the Davis-Stirling Common Interest Development Act (Davis-Stirling Act; Civ. Code, § 4000 et seq. ).1 She obtained preliminary injunctive relief on the basis of two of her statutory claims, staving off a board election under the new, direct vote rule. After a three-day bench trial, however, the trial court ruled against her on the merits. In the meantime, the HOA held a second election on the issue of cumulative voting, the outcome of which was the same as the first-approval of direct, rather than cumulative, voting by a very substantial margin. Finding that the second election addressed "whatever valid objections [Artus] may have had to the first" and the HOA had made good faith efforts to comply with the law, the court denied permanent injunctive and declaratory relief on that basis, as well.

Artus challenges the trial court's ultimate rejection of her two statutory claims on which she obtained preliminary injunctive relief and claims she is entitled, at the very least, to declaratory relief. However, we need not, and do not, reach the merits of her statutory claims, as we conclude the trial court did not, in any event, err in denying declaratory relief.

We additionally reject Artus' claim that, regardless of the ultimate outcome, she is entitled to statutory fees and costs under the reasoning of Monterossa v. Superior Court (2015) 237 Cal.App.4th 747, 188 Cal.Rptr.3d 453 ( Monterossa ), because she obtained preliminary injunctive relief. As we explain, unlike the California Homeowner's Bill of Rights statute at issue in Monterossa (§ 2924.12), neither the language of the Davis-Stirling Act, nor the legislative history of the fee provision Artus invokes, evidences any intent *927on the part of the Legislature to depart from well-established principles that fees and costs are ordinarily not granted for interim success, and that the prevailing party is determined, and fees and costs awarded, at the conclusion of the litigation.

We therefore affirm the judgment and the order denying statutory fees and costs.

BACKGROUND

Gramercy Towers HOA manages and maintains a 260-unit condominium property in San Francisco and, as such, is subject to the provisions of the Davis-Stirling Act. Artus, who has both a Ph.D. in economics and a Juris Doctorate, owns three condominiums in the development.

The HOA is governed by a seven-member board. Prior to the instant litigation, the HOA's bylaws and election rules provided for cumulative voting, whereby a member "would receive a number of votes equal to the total number of directors to be elected and a member could, for example, choose to cast all her ballots for one candidate."2 While the practice of cumulative voting was in place, Artus was elected to the board three times, in 2007, 2008, and 2013.

The HOA first adopted election rules in 2007. "In general, there [are] two types of *499[HOA] elections: to choose directors or to decide issues. Where the election involved an issue to be decided[,] the Board always advised the membership of the Board's position on the question. The election rules specify that any member may ask to submit a written statement setting forth his or her position on any election." As a board member, Artus "personally participated in drafting these election rules ... [and] therefore had intimate knowledge of both the rules and the custom and practice of the organization in how the rules were implemented for elections." (Italics & boldface omitted.)

Eventually, a number of board members wanted to amend the HOA bylaws and election rules to eliminate cumulative voting. Accordingly, in May 2014, the board adopted a resolution proposing elimination of the practice by a six-to-one vote, Artus casting the lone dissenting vote. The board scheduled an election on the issue for July 25, 2014.

The board notified the HOA membership of the proposed change and the date of the election. It also sent the membership, in addition to a ballot, a *928two-page, unsigned letter " 'solicit[ing] [member's] support for' " the proposed voting change and stating the board's reasons for proposing it. The letter posited six questions-(1) What is cumulative voting? What is direct voting?, (2) Why does Gramercy Towers have cumulative voting now?, (3) Why should we eliminate cumulative voting?, (4) What do other authorities say?, (5) What are the disadvantages of cumulative voting?, and (6) What are the most compelling reasons for straight voting?. The answers were all supportive of direct, rather than cumulative, voting. Among the points made were that the cumulative voting rule originated with the developer and gave the developer a weighted advantage in elections, cumulative voting enables minority interests to obtain disproportionate power over HOA matters, the author of the Davis-Stirling Act was on record as saying cumulative voting provides no significant benefit other than to the developer, and direct voting is more democratic and is more easily administered. The letter closed by stating: "Remember: Vote 'Yes' on the upcoming special election. Amend our Bylaws and give Gramercy Towers the up-to-date election procedures it deserves."

The board additionally posted notices in condominium elevators urging members to vote. These notices asked members to "Vote," and stated: "We need quorum by July 25th."

The only complaint Artus voiced at the time was in an e-mail to the board president calling attention to an issue of whether staff materials of the HOA were used in relation to the posted notice and that members who opposed the proposed change were not given an opportunity to post their own messages on the elevator boards.

The July election proceeded, and a large majority of voting HOA members approved the elimination of cumulative voting-136 units in favor and 28 units opposed.

A month later, Artus filed the instant action. She made numerous allegations, including that the HOA had adopted a new rule without consideration of member comments and without giving all members an opportunity to be heard, appointed an interested election inspector, violated member inspection rights, increased assessments excessively and without the required reserve study and budgetary disclosures, and failed to provide accurate disclosure of material aspects of HOA finances. She also sought preliminary injunctive relief to prevent immediate implementation of the new direct voting rule so *500it would not apply to the upcoming board election.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Artus v. Gramercy Towers Condominium Assn. CA1/2
California Court of Appeal, 2026
Ruffier v. Volcano Hills Road Maintenance Assn.
California Court of Appeal, 2026
Preovolos v. Preovolos CA4/1
California Court of Appeal, 2024
Vichy Springs Resort, Inc. v. City of Ukiah
California Court of Appeal, 2024
Parker v. Schwarcz
California Court of Appeal, 2022
Chen v. Valstock Ventures, LLC
California Court of Appeal, 2022
Artus v. Gramercy Towers Condominium Assn.
California Court of Appeal, 2022
Barrera v. Wells Fargo Bank CA4/3
California Court of Appeal, 2021
AWH Burbank Hotel v. Hollywood Way SHG CA2/1
California Court of Appeal, 2021
Torres v. Kaiser Foundation Hospitals CA2/7
California Court of Appeal, 2021
Shetty v. HSBC Bank USA, Nat. Assn. CA4/1
California Court of Appeal, 2020
King and Gardiner Farms, LLC v. County of Kern
California Court of Appeal, 2020

Cite This Page — Counsel Stack

Bluebook (online)
228 Cal. Rptr. 3d 496, 19 Cal. App. 5th 923, Counsel Stack Legal Research, https://law.counselstack.com/opinion/artus-v-gramercy-towers-condo-assn-calctapp5d-2018.