Auburn's Gameday Center at Magnolia Corner Owners Association, Inc. v. Murray

138 So. 3d 317, 2013 WL 1926389
CourtCourt of Civil Appeals of Alabama
DecidedMay 10, 2013
Docket2110849
StatusPublished
Cited by3 cases

This text of 138 So. 3d 317 (Auburn's Gameday Center at Magnolia Corner Owners Association, Inc. v. Murray) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Auburn's Gameday Center at Magnolia Corner Owners Association, Inc. v. Murray, 138 So. 3d 317, 2013 WL 1926389 (Ala. Ct. App. 2013).

Opinion

DONALDSON, Judge.

Auburn’s Gameday Center at Magnolia Corner Owners Association, Inc. (“Magnolia Corner OA”), appeals from a judgment of the Lee Circuit Court in favor of Edward Murray and Sandra Murray on a negligence claim asserted by the Murrays arising from damage caused by water intrusion to a condominium unit they own. The Murrays cross-appeal from the judgment of the trial court in favor of Magnolia Corner OA on their other claims alleging breach of contract, fraudulent concealment, and negligence and their claim seeking a declaratory judgment regarding the validity of an amendment to a condominium agreement affecting their unit.

Factual Background and Procedural History

This dispute involves a house that is a unit of Auburn’s Gameday Center at Magnolia Corner (“Magnolia Corner”), a condominium complex located in Auburn. The house was built in 1928, but it was incorporated into Magnolia Corner with the filing of a declaration of condominium (“the declaration”) in October 2000 in the Lee County Probate Court by Gameday Centers Southeastern, LLC (“GCS”), a company that owns and operates condominium complexes in various university towns in the southeast. In addition to the house, Magnolia Corner consists of a traditional, L-shaped condominium building that was constructed in 2000 and is divided into several individual units. Including the house, Magnolia Corner consists of eight total units.

The house contains a basement. An exterior, concrete staircase on the eastern side of the house provides a means of access to the basement. A drain is located in the landing of the staircase, right outside the basement door. Another drain also is positioned in the middle of the interior portion of the basement, and the [321]*321floor of the basement slopes toward that drain. A patio sits appurtenant to the top of the staircase. Until 2009, the patio consisted of hexagonal-shaped concrete pavers. The patio, stairs, and basement were already constructed and in existence when GCS purchased the house. The record reveals that the basement has a propensity to flood after heavy rainfall. Until 2010, the basement did not have air conditioning, although it contained fans. Testimony indicates that the basement flooded at least once while GCS owned the property-

GCS established and developed Magnolia Corner directly across the street from a separate condominium complex it owned and operated. At the time of the filing of the declaration in 2000 and for several years prior, GCS owned the house and utilized it as an office for the operation of its condominium business. Testimony indicates that the house remained in the same condition from 2000 to 2003, and that GCS made no significant alterations to the house or patio at any point during its ownership of the property. In 2003, shortly after GCS moved its operations to Atlanta, Georgia, GCS placed the house for sale. In September 2003, the Murrays entered into a contract with GCS to purchase the house in an “as is” condition. The sales contract describes the house as a “Suite” and indicates that the “nature of the rights and undertakings of the purchaser in acquiring and owning such Suite are controlled and will be subject to a Declaration of Condominium, Articles of Incorporation of the Condominium Association, Bylaws of the Association, Rules and Regulations of the Association, and a management agreement regarding the operation and management of the condominium.” The Murrays owned two units in the GCS condominium complex across the street from Magnolia Corner. Further, the record establishes that Edward Murray was a passive investor in GCS.

In December 2003, after the Murrays had entered into the contract with GCS to purchase the house but before the closing, Magnolia Corner OA filed an amendment to the declaration (“the amendment”) in the Lee County Probate Court. The amendment specified that Magnolia Corner was divided into two buildings. The amendment identified the L-shaped structure as “Building One” and the house as “Building Two.” The amendment modified section 6.01 of the declaration concerning the ownership interest each unit owner had in Magnolia Corner’s common elements, which also corresponded to each owner’s percentage share of the responsibility for the common expenses incurred by the condominium. The amendment states that the amount of ownership interest was based on the square footage of each individual unit. The amendment noted an increase in the square footage of the house from 1,350 to 1,826.50. Thus, the ownership interest in Magnolia Corner of the owner of the house increased. from 14.7% in the declaration to 19.58% in the amendment. The amendment preserved Section 5.11 of the declaration concerning the definition of a “common element,” which states, in pertinent part, as follows:

“[A]ll portions of the Condominium other than the Suites and will include the common areas and facilities located substantially as shown on the Plans and Plat. Such common areas will include the following:
“A. All of the Real Property.
“B. All improvements and parts of the Real Property which are not a Suite or Private Element.
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“E. The mechanical systems and installations providing service to a Building or any Suite, such as [322]*322electrical power, gas, light, hot and cold water, heating and air conditioning, sanitary and storm sewer facilities and including all lines, pipes, ducts, flues, chutes, conduits, cables, wires and all other apparatus and installations in connection therewith, whether located in the Common Elements or in the Suites, except when situated entirely within a Suite for service only of that Suite.”

Section 8.01 of the declaration, which states that “[Magnolia Corner OA] is responsible for maintenance, repair, and replacement of the common elements,” was also unchanged by the amendment. Paragraph 15 of the amendment modified and designated the areas that were to be considered “limited common elements,” including, as to the house, the following:

“The walkway and steps abutting the Building Two Unit leading from the ground to the basement are Limited Common Elements appurtenant to the Building Two Unit whose use is restricted to the Building Two Unit. The maintenance, repair, upkeep and replacement of the walkway and steps abutting the Building Two Unit leading to the basement shall be the exclusive responsibility of the Owner of the Building Two Unit.”

Concerning the maintenance of the limited common elements, the amendment stated, in pertinent part, that “each Owner is responsible for the replacement, maintenance and repair of the Limited Common Elements, if any, attached to the Unit of said owner as provided for in Paragraph 15 of this Amendment.” The parties do not dispute that the patio was considered a common element of Magnolia Corner.

In January 2004, subsequent to the filing of the amendment, the Murrays closed on the purchase of the house. The Mur-rays claim that they did not receive notice of the amendment until they requested a copy of it from Magnolia Corner OA in 2007. The warranty deed executed by GCS conveying the house to the Murrays, however, referenced both the declaration and the amendment.

In 2005, following a heavy rain, the basement of the house flooded. Sandra Murray discovered approximately two to three gallons of water in the basement. Mrs.

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Bluebook (online)
138 So. 3d 317, 2013 WL 1926389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/auburns-gameday-center-at-magnolia-corner-owners-association-inc-v-alacivapp-2013.