Cedar Creek I, Improvement Ass'n v. Smith

2013 OK CIV APP 74, 307 P.3d 412, 2013 WL 3991883, 2013 Okla. Civ. App. LEXIS 63
CourtCourt of Civil Appeals of Oklahoma
DecidedJune 19, 2013
DocketNo. 110,795
StatusPublished

This text of 2013 OK CIV APP 74 (Cedar Creek I, Improvement Ass'n v. Smith) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cedar Creek I, Improvement Ass'n v. Smith, 2013 OK CIV APP 74, 307 P.3d 412, 2013 WL 3991883, 2013 Okla. Civ. App. LEXIS 63 (Okla. Ct. App. 2013).

Opinion

KEITH RAPP, Judge.

[ 1 The trial court plaintiff, Cedar Creek I, Improvement Association (Cedar Creek), appeals the Small Claims trial court's judgment denying its claim against the defendants, Robert J. Smith and Lora Smith (collectively Smiths), for a special charge or assessment to pay for a public street repair1 In addition, Cedar Creek appeals the limitation of the attorney fee awarded to it by the trial court for collection of unpaid annual dues.

BACKGROUND

T2 This is an appeal from a decision in Small Claims court. The record evidence is supplied by an approved Narrative Statement of the agreed facts and exhibits2 Ce dar Creek I is a duly platted subdivision in Logan County. The subdivision is not situated within the limits of any city or town. The subdivision plat establishes and dedicates rights-of-way and public streets, which come under the jurisdiction of Logan County. As part of the development process, the developer established a property owners' association3

T3 The developer prepared and filed of record an Owner's Certificate and Restrictions for Cedar Creek I (Restrictions). One provision in the Restrictions refers to a homeowners' association and its purpose.4 This statement of purpose for the association provides:

For the purpose of maintaining general planting within the roadway areas, and all common community services of every kind and nature required or desired within the subdivision for the general use and benefit of all owners, each and every lot owner, in accepting a deed or contract for any lot in such premises agrees to and shall become [414]*414a member of and be subject to the obligations and duly enacted By-Laws and rules of the Cedar Creek I, Improvement Association, an organization composed of each lot owner(s).
(Provision is made for meetings and organization.) Said By-Laws and/or rules shall be enforceable as any contractual obligation.

T4 The Record includes the Cedar Creek By-Laws5 The By-Laws provide for officers and an executive committee. The executive committee carries out the plans and functions of Cedar Creek, but is limited to annual expenditures of $3,500.00, without previous authority from a majority vote of members present at a membership meeting. The By-Laws provide that the purpose of Cedar Creek is:

The purpose of the Association to maintain general planting within the roadway areas, and all common community services of every kind and nature required or desired within the subdivision for the general use and benefit of all lot owners.

T5 Apparently, a street in the subdivision had fallen into disrepair. The county had not undertaken to maintain or repair this street or other streets in the subdivision. On September 25, 2011, at a special meeting of the Cedar Creek membership, the members present voted in favor of an executive committee proposal, as follows:6

That a one-time charge of $2,000.00 be assessed to each family in Cedar Creek I to be paid over to the Treasurer no later than October 15, 2011 to fund a road repair project to be undertaken no later than the end of October, 2011. These funds along with approximately $20,000.00 which we currently have in the treasury will be used to fund this project.

T6 The Smiths are homeowners in Cedar Creek I subdivision and members of Cedar Creek. Annual dues are assessed at $250.00. Until this dispute arose, the Smiths were current on their annual dues. However, the Smiths refused to pay the $2,000.00, and also then became delinquent with their annual dues for two years in the sum of $500.00.

T7 Cedar Creek filed suit in Small Claims court for both sums. The Smiths agreed that they owed the dues, but contested the $2,000.00 charge. The parties presented the case on the foregoing agreed facts and exhibits.

T8 The trial court awarded Cedar Creek judgment for the $500.00 dues, plus an attorney fee of ten percent.7 Cedar Creek claims that the trial court erred in the fee award.

T9 The trial court denied recovery for the $2,000.00 charge or assessment. The trial court found that there was no authority by statute, the restrictive covenants, or in any of the Cedar Creek governing documents whereby Cedar Creek could impose a special assessment for improving public property, here a public road.8 Therefore, the charge was unauthorized.

{10 Cedar Creek appeals. In addition to the attorney fee issue, Cedar Creek first maintains that the trial court erred by ruling that the Cedar Creek governing documents fail to create a contractual obligation to pay assessments adopted by the owners as members of Cedar Creek. Next, Cedar Creek argues that the trial court erred by ruling that Cedar Creek funds could not be collected and used for the purpose of improving public property.

STANDARD OF REVIEW

111 Where the facts are not disputed an appeal presents only a question of law. [415]*415Baptist Building Corp. v. Barnes, 1994 OK CIV APP 71, ¶ 5, 874 P.2d 68, 69. The appellate court has the plenary, independent, and nondeferential authority to reexamine a trial court's legal rulings. Neil Acquisition, L.L.C,. v. Wingrod Investment Corp., 1996 OK 125, 932 P.2d 1100 n. 1.

ANALYSIS AND REVIEW

{12 There is no dispute that: (1) road repairs are needed; (2) the road is a county public road by virtue of plat dedication; (8) the county commissioners have not made the repairs; and (4) Cedar Creek intended to contract directly with a private contractor to perform the repairs. The Record does not show any formal demand on the county commissioners to perform the repairs or maintenance or any legal action against the county commissioners to compel performance.9 The Cedar Creek fund was not in the form of a donation to the County.

{ 13 Cedar Creek begins with the proposition that the Oklahoma Real Estate Development Act (REDA), 60 0.8.2011, § 851 and following, authorizes formation of owner associations with power to do what Cedar Creek did here regarding the $2,000.00 charge or assessment. Next, Cedar Creek interprets its By-Laws and maintains that the By-Laws include the power to make charges for public street repairs.10

114 REDA does authorize formation of property owners' associations and provides for enforcement of restrictions and covenants. - However, it does not follow that authority is also given to make a charge, or assessment, to repair public roads. The plain language of Section 852(A)(1) applies the purpose of the association to the commonly owned property and Section 852(A)(2) applies to the enforcement of mutual interests and restriction as to separately owned lots or parcels in the subdivision.11

115 Here, the issue involves a dedicated public street. As such, the street is not common or separately owned property in the subdivision.12 - Therefore, Section 852 does not authorize formation of an owners' association with the power to make a charge or assessment for repair of a public road.

116 Moreover, Section 852(B) requires that the governing document "shall set forth in detail the nature of the obligations of the [416]

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

Related

Cave Springs Public School District I-30 v. Blair
1980 OK 103 (Supreme Court of Oklahoma, 1980)
Baptist Building Corp. v. Barnes
1994 OK CIV APP 71 (Court of Civil Appeals of Oklahoma, 1994)
Jenkins v. Frederick
1952 OK 456 (Supreme Court of Oklahoma, 1952)
Goss v. Mitchell
2011 OK CIV APP 74 (Court of Civil Appeals of Oklahoma, 2011)
State Ex Rel. Oklahoma Bar Ass'n v. Combs
2008 OK 96 (Supreme Court of Oklahoma, 2008)
Neil Acquisition, L.L.C. v. Wingrod Investment Corp.
1996 OK 125 (Supreme Court of Oklahoma, 1996)
Fulsom v. Fulsom
2003 OK 96 (Supreme Court of Oklahoma, 2003)
Oaks Owners' Ass'n, Inc. v. Keim
2004 OK CIV APP 63 (Court of Civil Appeals of Oklahoma, 2004)
In Re Martin's Estate
1938 OK 322 (Supreme Court of Oklahoma, 1938)
Cebuhar v. Bovaird
2003 OK CIV APP 19 (Court of Civil Appeals of Oklahoma, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
2013 OK CIV APP 74, 307 P.3d 412, 2013 WL 3991883, 2013 Okla. Civ. App. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cedar-creek-i-improvement-assn-v-smith-oklacivapp-2013.