Daniel C. Lavering v. University Village Owners Association

Court of Appeals of Virginia·Decided June 30, 2026·No. 1710242·Published

Opinion

COURT OF APPEALS OF VIRGINIA Record No. 1710-24-2

DANIEL C. LAVERING

v.

UNIVERSITY VILLAGE OWNERS ASSOCIATION

Present: Chief Judge Decker, Judges Malveaux and Duffan Opinion Issued June 30, 2026

UPON A REHEARING

FROM THE CIRCUIT COURT OF ALBEMARLE COUNTY Cheryl V. Higgins, Judge

(John B. Simpson; Kyle McNew; MartinWren, P.C.; MichieHamlett PLLC, on briefs), for appellant.

(Marla J. Diaz; Claudia Lopez-Knapp; Whiteford, Taylor & Preston L.L.P., on brief), for appellee.

PUBLISHED OPINION BY

JUDGE KEVIN M. DUFFAN

At issue in this case is whether a condominium may amend its condominium instruments to extend the time limit for the expansion of new units with less than unanimity of the owners of the existing units. We conclude that, although Code §§ 55.1-1916(C)(3) and -1934(B) allow such an amendment to be accomplished through a two-thirds vote, actual expansion requires the unanimous support of the unit owners. Accordingly, we affirm in part, reverse in part, and remand for the circuit court to reconsider its award of attorney fees.

BACKGROUND

In 1991, University Village, Inc., established an expandable condominium1 in Albemarle County by declaration made subject to the Virginia Condominium Act, Code §§ 55.1-1900 through -1995.2 As the declarant, University Village reserved the right to expand the condominium at its discretion within seven years from the date of the declaration. If not exercised, the option to expand would “in all respects expire and be of no further force and effect.”

Initially, the condominium included 1 building with 46 units, referred to as “Phase I of University Village.” Each unit included an “undivided interest in the Common Elements appertaining to that unit.”3 The declaration stated that “the Percentage Interest assigned to each Unit . . . shall change” if new units were added to the condominium. The declaration also stated it could be amended by a “vote of at least 66-2/3% of the Unit Owners.”

Within 7 years of the declaration, University Village constructed a “Phase II” building with 48 additional units. The seven-year expansion period provided by the declaration expired in 1998. In 2003, 94.3% of the condominium’s unit owners approved an amendment to the declaration to expand the period in which University Village could submit “Phase III” to the condominium regime. The proposal was to authorize a development company that was already under contract to expand the condominium within three and a half years of the amendment.

1

An “expandable condominium” is “a condominium to which additional land may be added in accordance with the provisions of the declaration and” the Virginia Condominium Act. Code § 55.1-1900.

2

Code §§ 55.1-1990 through -1995 were repealed effective July 1, 2023.

3

“‘Common elements’ means all portions of the condominium other than the units.”

Code § 55.1-1900.

Despite that amendment, no new units were constructed. Daniel Lavering purchased a condominium unit in University Village in 2004.

Due to renewed talk about the proposed “Phase III” expansion, in October 2021 Lavering’s counsel sent a letter to the president of the University Village Owner’s Association’s Board of Directors expressing the view that any expansion required unanimous consent of the unit owners. Referring to the declaration and the 2003 amendment, the Association manager responded that the declaration could be amended by consent of two-thirds of unit owners. In January 2022, the Board adopted a policy resolution “to begin the process of amending the . . . Declaration to allow for construction of Phase 3 units.” To that end, the Board “engage[d] the services of [counsel] to draft a proposed declaration amendment to allow development of Phase 3 of the condominium” at an estimated cost of $5,000 to $7,000. At a June 2022 town meeting, unit owners were told that “[p]resent thinking is that this summer could provide time to prepare for a Fall vote of condo unit owners on Phase III” and that the vote would be whether to amend the declaration to submit additional land to the condominium.

Lavering filed a declaratory judgment action against the Association in May 2022. As relevant here, Lavering requested a declaratory judgment that (1) “any actions taken by the Association that seek to cause the expansion of the Condominium . . . without the agreement of 100% of the Unit Owners” would be void, and (2) “there can be no expansion of the Condominium . . . without the agreement of 100% of the Unit Owners.” Lavering alleged that “[t]he Association has asserted and continues to assert that there can be expansion of the Condominium with only a 66 and 2/3 favorable vote by the Unit Owners.” The Association denied that allegation in its answer. In April 2023, the Association moved for summary judgment, claiming that it could amend the declaration to extend the declarant expansion period by a two-thirds vote of its unit owners. Lavering filed a cross-motion for partial summary

judgment, asking the circuit court to declare “that there can be no expansion . . . without the agreement of 100% of the unit owners.”

After a hearing, the circuit court granted the Association’s motion and denied Lavering’s motion. The circuit court found that University Village, Inc. was the declarant, not the Association. In the court’s view, the option to expand contained in the declaration was an option to expand “made by the declarant and only by the declarant.” The circuit court then turned to Code § 55.1-1916, finding that it limited the declarant’s ability to expand but not the Association’s. As the circuit court explained, it was anticipated that the condominium would “last for a significantly longer period than seven years or ten years” and it was “too narrow an interpretation” of the statute to limit the expansion period. Consequently, the circuit court found that the expansion period could be “extended by whatever entity is then, at that time, the controlling entity of the additional property and that it can be extended by an amendment at any time to the declaration as there is no time limit in the statute.” Finally, the circuit court found that the amendment could be approved by two-thirds support of the unit owners. Lavering moved for reconsideration, which the trial court denied.

Lavering also moved for sanctions, contending that the Association had acted in bad faith by denying its two-thirds position in its answer and then taking that position in its motion for summary judgment. Lavering claimed that the Association’s tactic resulted in unnecessary and costly litigation and specifically asserted that he incurred at least $40,000 in unnecessary attorney fees and costs during discovery because of the Association’s denials. Although finding “questionable reasons” for the Association’s denials, ultimately the circuit court denied the motion for sanctions, finding no bad faith because there is a difference between expanding the condominium and extending the right to expand. The circuit court also found that the issues “did not impact [Lavering’s] analysis of this case overall.”

The Association requested attorney fees of $126,756.97 as the prevailing party under Code § 55.1-1915. The trial court awarded the Association $81,223 in attorney fees. Lavering appeals.

ANALYSIS

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