Brickyard Homeowners' Ass'n Management Committee v. Gibbons Realty Co.

668 P.2d 535, 1983 Utah LEXIS 1106
CourtUtah Supreme Court
DecidedJuly 7, 1983
Docket17776
StatusPublished
Cited by40 cases

This text of 668 P.2d 535 (Brickyard Homeowners' Ass'n Management Committee v. Gibbons Realty Co.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brickyard Homeowners' Ass'n Management Committee v. Gibbons Realty Co., 668 P.2d 535, 1983 Utah LEXIS 1106 (Utah 1983).

Opinion

HOWE, Justice:

We granted an interlocutory appeal on petition by the defendants when their motion to dismiss for lack of standing was denied by the court below. They challenge plaintiff’s right to sue under U.C.A., 1953, § 57-8-33. This is a case of first impression in our forum.

Plaintiff constitutes the management committee of the Brickyard Homeowners’ Association created pursuant to the Utah Condominium Ownership Act, § 57-8-1, et seq. and the declaration and by-laws of the Brickyard Condominiums. Its complaint comprises four causes of action or claims against the defendants, who designed, constructed, marketed and sold the condominiums. The first claim alleges damages for negligent design and workmanship affecting the common areas as well as the “A” and “C” units of the condominium project. The second claim includes breaches of implied warranty of fitness for proper use of the “A” and “C” units and common area facilities as well as of water rights for the fresh water ponds in the common areas. The third claim states a breach of express warranty with respect to the glass installation in the atriums in the “C” units. Under the fourth claim the defendants are charged with falsely representing that the glass installation in those atriums were double pane insulated, and that walkways around the reflection ponds and other common areas would be landscaped and fully maintained.

Defendants’ motion to dismiss plaintiff’s complaint for failure to state a claim for relief and for lack of standing and/or capacity to sue was denied and a petition for interlocutory appeal was subsequently *537 granted by this Court. The defendants ask that we direct the district court to order plaintiff to bring its complaint as a class action, or in the alternative to join the 108 unit owners as necessary parties. Defendants further ask for a dismissal of all but the common area claims of the first claim on the ground that management committee lacks standing to sue on them.

I.

A 1961 amendment to the National Housing Act 1 authorizing F.H.A. insurance on condominium mortgages launched the large-scale development of a new version of home ownership theretofore virtually unknown in the continental United States of America. 2 As shrinking land and expanding population centers in the metropolitan areas of the United States combined to render condominium ownership a desirable alternative to conventional home ownership, so arose the need for the protection of prospective owners and for the financial backing by lenders. The 1961 amendment broke the ground to allow for both. The F.H.A.’s model statute for the creation of apartment ownership was quickly fashioned to serve as a model for those jurisdictions that wished to avail themselves of appropriate measures to implement this new form of ownership.

The ... suggested form of statute is intended as a guide to persons or groups interested in legislation which would permit § 234 (condominium) mortgage insurance in a particular jurisdiction. The model statute represents what F.H.A. regards as the best framework within which to obtain the objectives of condominium ownership. However, in order for this statute (or any variation thereof which would achieve the same objectives as this model) to be legally effective, it is advisable that the sponsors of such legislation analyze the other laws of their jurisdiction (e.g. statutes concerning taxation, real property, mortgages, future interests, recording, subdivision platting, liens, insurance, zoning, etc.) to determine in what way such statutes may have to be amended to permit and establish the condominium objectives of the model statute.

Rohan Reskin, supra, Yol. 1 A, Appendix B-3.

Utah was among the early states to adopt a closely parallel version of the F.H.A. model and in 1963 enacted what is popularly known as the Utah Condominium Ownership Act, codified under U.C.A., 1953, § 57-8-1, et seq. We agree with the defendants that Utah legislators specifically evidenced an intent to satisfy doubts expressed by the F.H.A. in financing condominium ownership. Lenders needed guidelines to assure a prospective owner continued protection of his investment and thus the ultimate returns to the lender. That was the rationale behind both the amendment of the National Housing Act and of the subsequent enactment of the Utah Condominium Ownership Act. Moreover, it should be presumed that the F.H.A. prepared the model statute with the aim of achieving uniformity through adoption by the various states of statutes patterned after that model. It has been said that the influences of statutory models tend to establish “a general body of legislative jurisprudence not wholly unlike the general principles of the common law.” Sutherland Statutory Construction, Yol. 2 A, § 52.01 (1973). That body of legislative jurisprudence becomes our beacon when we examine our sister forums to guide us in deciding the question before us.

A condominium owner is the holder of a hybrid real property interest consisting of “two distinct tenures, one in severalty and the other in common; both types, although well established separately, are inseparably joined in a condominium.” Annot., 69 A.L.R. 3rd 1148, 1149 (1976). It is the inseparability of this interest that makes it a creature unknown to common law and thus amenable to statutory clarification. With *538 this predicate in mind we must interpret the Condominium Ownership Act in its entirety to construe § 57-8-33 dealing with actions brought by the manager or management committee (hereinafter management committee). “A statute should be construed so that effect is given to all its provisions, so that no part will be inoperative or superfluous, void or insignificant, and so that one section will not destroy another ...” Sutherland, supra, § 46.06. See also Andrus v. Allred, 17 Utah 2d 106, 404 P.2d 972 (1965); Johnson v. State Tax Commission, 17 Utah 2d 337, 411 P.2d 831 (1966); Millet v. Clark Clinic Corp., Utah, 609 P.2d 934 (1980); Christensen v. Industrial Commission, Utah, 642 P.2d 755 (1982).

II.

U.C.A., 1953, § 57-8-33 provides as follows:

Without limiting the rights of any unit owner, actions may be brought by the manager or management committee, in either case in the discretion of the management committee, on behalf of two or more of the unit owners, as their respective interest may appear, with respect to any cause of action relating to the common areas and facilities or more than one unit. Service of process on two or more unit owners in any action relating to the common areas and facilities or more than one unit may be made on the person designated in the declaration to receive service of process.

Prefatory to our interpretation of this section we note the directive that we construe statutes liberally with a view to effect their objects and to promote justice. U.C.A., 1953, § 68-3-2.

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Bluebook (online)
668 P.2d 535, 1983 Utah LEXIS 1106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brickyard-homeowners-assn-management-committee-v-gibbons-realty-co-utah-1983.