Hatfield v. La Charmant Home Owners Ass'n

469 N.E.2d 1218, 1984 Ind. App. LEXIS 3011
CourtIndiana Court of Appeals
DecidedOctober 31, 1984
Docket1-284A44
StatusPublished
Cited by15 cases

This text of 469 N.E.2d 1218 (Hatfield v. La Charmant Home Owners Ass'n) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hatfield v. La Charmant Home Owners Ass'n, 469 N.E.2d 1218, 1984 Ind. App. LEXIS 3011 (Ind. Ct. App. 1984).

Opinion

RATLIFF, Judge.

STATEMENT OF THE CASE

Paul E. Hatfield and Robert F. Hatfield appeal from the granting of the appellee's motion for partial summary judgment by the Vanderburgh Superior Court. 1 We affirm.

FACTS

(On February 14, 1979, the developers recorded the "Declaration of Condominium of La Charmant, a Horizontal Property Regime" in the office of the Recorder of Vanderburgh County. At that time, the developers were the sole owners of the 52 condominium units at La Charmant. By October 1982, however, the developers had sold 29 of the 52 units available for sale.

Between February 15, 1979 and August 11, 1982, the developers and Betty R. Hatfield were the only officers and directors of the La Charmant Home Owners Association. Under their direction, the association assessed owners of units purchased from the developers for expenses incurred in the maintenance and repair of the common areas and facilities. These assessments began in October 1979. No unit owned by the developers, however, was subjected to these common area assessment charges.

*1220 In August 1982, following the election of new officers and directors, the association notified the developers of their past due assessment charges. On October 1, 1982, the association filed two notices of its intention to hold liens, in the principal amounts of $49,008.50 and $32,052.33, on the units which the developers continued to hold for sale. 2 These liens covered the unpaid assessment charges which accrued between October 1979, and September 1982, on the developer's unsold units.

The developers subsequently filed a seven count complaint seeking damages for and injunctive relief from the association's notices of its intention to hold liens. The association then filed its answer and a four count counterclaim and third party complaint. In this counterclaim and third party complaint, the association sought, among other things, foreclosure of the liens and damages from the developers and Betty R. Hatfield for their failure to assess the developers for the common expenses chargeable to the units owned by them.

On May 10, 1988, the association moved for partial summary judgment on their counterclaim and third party complaint. The trial court granted their motion ruling that the developers were liable for common expense assessments just as any other unit owner at La Charmant would be. In its order, however, the court specifically reserved the question of the actual amount of the past due assessments the developers would be required to pay to the association. The developers then perfected this appeal. 3

ISSUE

Whether the Indiana Horizontal Property Law requires condominium developers to pay common expenses which have been assessed by the association of co-owners on uncompleted and unsold condominium units.

DISCUSSION AND DECISION

This appeal is from a grant of partial summary judgment, As this court has stated on a number of occasions, summary judgment is appropriate only where no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. Sink & Edwards, Inc. v. Huber, Hunt & Nichols, Inc., (1984) Ind.App., 458 N.E.2d 291, 295, trans. denied; Tippecanoe Sanitary Londfill, Inc. v. Board of County Commissioners, (1983) Ind.App., 455 N.E.2d 971, 974, trans. denied (1984); see also Indiana Rules of Procedure, Trial Rule 56(C). In the present case, the trial court found that there were no issues of material fact in dispute. The record supports this conclusion. Thus, the only question presented to this court is whether the trial court correctly applied the law. Nahmias v. Trustees of Indiana University, (1983) Ind.App., 444 N.E.2d 1204, 1206, trans. denied. This necessitates a brief discussion of the operation of Indiana's Horizontal Property Law. 4

The Indiana Horizontal Property Law sets forth a simple and direct statutory guide for the development and maintenance of a horizontal property regime. When the owner or owners of the property record the declaration of condominium, each unit becomes a separate and distinct parcel of realty. Indiana Code section 82-1-6-4 (Burns 1980). Obviously, the person or persons who held title to the property prior to recordation also hold the titles to the new condominium units. Thus, after the declaration is recorded, the owner or own *1221 ers of the original parcel of property become "co-owners" under the Horizontal Property Law. Indiana Code section 32-1-6-2(e) (Burns 1980). They remain "co-owners" until all units they hold title to are conveyed to other parties.

The Indiana Horizontal Property Law requires "co-owners" to pay for common expenses according to their percentage of the undivided interest in the common areas and facilities. Indiana Code sections 82-1-6-11, $2-1-6-22 (Burns 1980). These common expenses include the expenses related to maintenance and repairs of the common areas and facilities and any other expenses the "co-owners" agree to pay. Indiana Code section 32-1-6-2(i) (Burns 1980). Our statute provides no exemptions from these assessments for any "co-owner." Thus, it stands to reason, that if a developer is a "co-owner" under the terms of the Horizontal Property Law, he will be subject to assessments made by the association for common expenses.

The developers in this case are clearly "co-owners" under the Indiana Horizontal Property Law. At the time the "Declaration of Condominium of La Char-mant" was recorded, the developers were the sole owners of the property. Thus, upon recordation of the declaration, they became seized of each individual condominium unit and, consequently, "co-owners" under the statute. They were, therefore, subject to assessment by the association for all periods here in question. The trial court did not err when it entered partial summary judgment in favor of the association.

Our appellate courts have never before had occasion to construe the Indiana Horizontal Property Law. Of course, when construing an Indiana statute we are not bound by decisions of foreign jurisdictions. McKenna v. City of Fort Wayne, (1981) Ind.App., 429 N.E.2d 662, 664, However, when construing an Indiana statute for the first time, it is appropriate to look to the decisions of other states which interpret statutory language which is identical or of similar import. Id. While not identical to the Indiana Horizontal Property Law, the Florida statutory provisions governing condominiums, particularly those relating directly to the issues presented in this appeal, are very similar. A number of Florida cases have held that a developer who holds titles on unsold units is a unit owner and thus subject to the same assessments as any other unit owner. See eg., Brooks v.

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Cite This Page — Counsel Stack

Bluebook (online)
469 N.E.2d 1218, 1984 Ind. App. LEXIS 3011, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hatfield-v-la-charmant-home-owners-assn-indctapp-1984.