Edgewater Townhouse Homeowner's Ass'n v. Holtman

845 P.2d 1224, 256 Mont. 182, 50 State Rptr. 10, 1993 Mont. LEXIS 3
CourtMontana Supreme Court
DecidedJanuary 12, 1993
Docket91-513
StatusPublished
Cited by8 cases

This text of 845 P.2d 1224 (Edgewater Townhouse Homeowner's Ass'n v. Holtman) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edgewater Townhouse Homeowner's Ass'n v. Holtman, 845 P.2d 1224, 256 Mont. 182, 50 State Rptr. 10, 1993 Mont. LEXIS 3 (Mo. 1993).

Opinion

JUSTICE GRAY

delivered the Opinion of the Court.

Roger Holtman appeals from a judgment of the Fourth Judicial District Court, Missoula County, granting summary judgment in favor of the Edgewater Townhouse Homeowner’s Association and dismissing his counterclaim. The Edgewater Townhouse *184 Homeowner’s Association cross-appeals the District Court’s denial of claimed attorney’s fees for attorney-supervised paralegal work.

We phrase the issues on appeal as follows:

1) Did the District Court err in granting summary judgment for the Association?

2) Did the District Court err in dismissing Holtman’s counterclaim?

The Edgewater Townhouse Homeowner’s Association (the Association) is a condominium association of eleven condominiums located in Missoula. The Association is governed by its articles of incorporation and its bylaws, filed respectively with the Montana Secretary of State and the Missoula County Clerk and Recorder. Pursuant to Art. I, Sect. 3 of the bylaws, all owners or occupants of the units are subject to the rules contained in the bylaws and articles of incorporation. Roger Holtman (Holtman) purchased Unit #1 in 1985.

In March of 1988, the Association held meetings to discuss the installation of a new heating system for the condominiums. Holtman opposed installing a new system and argued to either repair the existing central heating system or allow the unit owners to pinchase individual systems of their choice. At a meeting on August 23, 1988, the unit owners present voted to install a Weil-McLain heating system. Holtman did not attend the meeting. After receiving bids, the Association assessed each member $3,900 to cover the costs. Holtman subsequently refused to pay the assessment or allow the Association access to his condominium to install the new system.

On February 5,1989, while Holtman was out of town, a neighbor heard running water in Holtman’s condominium. A meeting of the Board members was called and the situation was declared an emergency requiring entry into Holtman’s unit. After a unit owner entered Holtman’s condominium, the Association authorized a plumber to fix the leak and install the new heating system. When Holtman returned, he found that he was locked out of his damaged condominium, the new heating system was partially installed and, allegedly, asbestos contaminated his basement. He refused to allow further installation or pay for the heating system.

The Association filed a complaint on February 17, 1989, seeking an injunction to require the installation of the new heating system, damages, costs and attorney’s fees. Holtman answered by generally denying the Association’s allegations. On May 10,1989, Holtman filed a third-party complaint against the individual unit owners, claiming *185 they had deprived him of his property rights, invaded his privacy, and wrongfully contaminated his condominium with asbestos. Nearly a year later, the District Court granted the Association’s motion for an “alternative writ” to require the installation of the Weil-McLain heating system, and determined that the installation was necessary to preserve the property during the litigation. On September 17, 1990, the District Court granted the third-party defendants’ motion for summary judgment and dismissed the third-party complaint. Although the judgment was certified as final pursuant to Rule 54(b), M.R.Civ.P., Holtman did not appeal.

On January 14, 1991, the Association moved for summary judgment on its complaint. Two weeks later, Holtman responded by filing a counterclaim against the Association without obtaining leave of court; the allegations against the Association mirrored those made against the individual unit owners in Holtman’s earlier third-party complaint. On February 14, 1991, the Association moved to dismiss or strike the counterclaim. On June 4, 1991, the District Court filed orders granting both the motion for summary judgment and the motion to strike the counterclaim. In entering judgment, the District Court awarded the Association $16,367.92 in attorney’s fees; that amount was decreased by $4,000 in a supplemental judgment in response to Holtman’s objection. Both parties appeal.

Did the District Court err in granting summary judgment for the Association?

Under Rule 56(c), M.R.Civ.P., summary judgment is proper when no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. Summary judgment was not intended, nor can it be used, as a substitute for existing methods in the trial of issues of fact. Hull v. D. Irvin Transport (1984), 213 Mont. 75, 81, 690 P.2d 414, 417.

In granting the Association’s motion for summary judgment, the District Court stated that the Association complied with its bylaws and applicable statutes in changing the heating system and entering Holtman’s condominium. Specifically, it found that six of the eleven unit owners voted for installation of the heating system at the August 23,1988, meeting. On that basis, the court further found that the quorum and voting majority requirements of the bylaws were met. We conclude that the District Court improperly decided disputed issues of fact.

*186 Insofar as the bylaws are pertinent here, one membership in the incorporated association is appurtenant to each unit. Consequently, each unit is allowed only one vote. As a result, there are a total of eleven votes in the Association. Regardless of the number of individuals who may co-own one unit, the unit nevertheless can cast only one vote at Association meetings. The bylaws also provide that a majority vote at a meeting at which a quorum is present is binding upon all unit owners. A quorum requires the representation in person or by proxy of 50% of the total authorized votes and a majority is defined as more than 50% of the total authorized votes.

The District Court relied on the minutes of the August 23 meeting in determining that the Association complied with its bylaws. The minutes list the six individuals present as Ken, Mike, Doug, Lois and Jerry, and Andrea. In numerous references in the record, the names “Lois and Jerry Covault” appear to refer to the co-owners of one unit. Because each unit has only one vote to cast, it is possible that only five of eleven voting units were present at the meeting in question. If this is the case, no quorum existed because the bylaws require the presence of unit owners having 50% of the total authorized votes to constitute a quorum for the transaction of Association business.

In light of Holtman’s contention that the Association did not comply with the procedures as required by its bylaws in deciding to change the heating system, a genuine issue of material fact exists regarding whether a quorum existed at the August 23,1988, meeting. Absent a quorum, no decision made at that meeting is binding on other unit owners. We conclude that the District Court erred in granting summary judgment.

Did the District Court err in dismissing Holtman’s counterclaim?

In responding to the Association’s February 17, 1989, complaint, Holtman generally denied the allegations and did not assert a counterclaim.

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

Related

Watchtower v. 20th Judicial District
2021 MT 13 (Montana Supreme Court, 2021)
Diana's v. Crazy Mountain
2020 MT 199 (Montana Supreme Court, 2020)
Peeler v. Rocky Mountain Log Homes Can., Inc.
2018 MT 297 (Montana Supreme Court, 2018)
Roe v. Corbin Water Users' Ass'n
267 Mont. 503 (Montana Supreme Court, 1994)
Holtman v. 4-G's Plumbing & Heating, Inc.
872 P.2d 318 (Montana Supreme Court, 1994)
Emery v. Federated Foods, Inc.
863 P.2d 426 (Montana Supreme Court, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
845 P.2d 1224, 256 Mont. 182, 50 State Rptr. 10, 1993 Mont. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edgewater-townhouse-homeowners-assn-v-holtman-mont-1993.