LaBar Village Condominium Ass'n v. LaBar Village Community Ass'n

29 Pa. D. & C.5th 99
CourtPennsylvania Court of Common Pleas, Monroe County
DecidedMarch 11, 2013
DocketNo. 10211 CIVIL 2009
StatusPublished

This text of 29 Pa. D. & C.5th 99 (LaBar Village Condominium Ass'n v. LaBar Village Community Ass'n) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Monroe County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LaBar Village Condominium Ass'n v. LaBar Village Community Ass'n, 29 Pa. D. & C.5th 99 (Pa. Super. Ct. 2013).

Opinion

HIGGINS, J.,

Now before the court are the exceptions to the master’s report and recommendation filed by the defendant, LaBar Village Community Association, Inc. (“defendant”). The plaintiffs in this suit are LaBar Village Condominium Association, Inc., LaBar Meadows Condominium Association, Inc., David Braithwaite, Barbara Braithwaite and Catherine Fordham (collectively, “plaintiffs”).1 This case concerns the interpretation of a declaration, recorded in 1990, which governs voting rights and member-fee assessments for a multi-phase planned community known as LaBar Village. The two plaintiff condominium associations, as well as Mr. and Mrs. Braithwaite and Ms. Fordham, have [102]*102certain representative voting rights on the community’s board and are assessed fees pursuant to the declaration. In part, they ask the court to clarify the obligations of the parties.

In count I, the plaintiffs seek declaratory judgment on the meaning of the declaration’s terms “general common area,” “exclusive common area” and “neighborhood” for purposes of the fee assessment.

In count II, the plaintiffs also seek declaratory judgment that they are entitled to separate representation on the board of directors for each phase-neighborhood, pursuant to certain terms of the declaration.

In count IV, the plaintiffs claim that the defendant breached its fiduciary duty when it improperly designated (or failed to designate) the common areas, and assessed fees against the plaintiffs in contradiction of the terms of the declaration.

For counts III, V and VI neither party has filed exceptions to the special master’s recommendations.2 We summarize the procedural history as follows:

On October 30, 2009, the plaintiffs filed the instant complaint against the defendant.

On April 29, 2010, we ordered that the parties complete discovery by September 30,2010. On December 14, 2010, we accepted a voluminous, stipulated record [103]*103filed by the parties.

On January 13, 2011, the plaintiffs filed a motion for summary judgment. On April 5, 2011, we heard oral argument on the plaintiffs’ motion. On July 14, 2011, we denied the plaintiffs motion for summary judgment.

On January 4, 2012, by stipulation of the parties, we appointed James F. Preston, Esq. as special master to issue a report and recommendation for the court. On February 12, 2012, in order to prepare his report and recommendation, the special master toured the property, accompanied by both parties’ attorneys. On July 12 and July 31, 2012, the special master held hearings at which the parties presented evidence and, on August 8, 2012, the special master heard arguments. On September 10, 2012, the special master issued his report and recommendation.

On October 11,2012, the defendant filed its exceptions to the report and recommendation. On October 15, 2012, the plaintiffs filed their response.3

On December 3, 2012, we heard arguments. We summarize the facts as follows:

In 1990, Charles Wilson recorded a declaration for a piece of property he was developing called LaBar Village.4 The declaration for LaBar Village was signed by Mr. Wilson on behalf of LaBar Village Development Company. [104]*104LaBar Village is a multi-phase planned community which was built up over time. Since 1990, the declaration has continuously governed the different phases of LaBar Village up until the present date.

The phases of the development were given names: Pine Valley, Turtle Cove, Duck Hollow, Sparrow Pointe, Meadows and Cedarwood. Meadows and Cedarwood are condominiums, while Pine Valley, Turtle Cove, Duck Hollow and Sparrow Pointe consist of townhomes. Meadows and Cedarwood have their own separate associations governed by the ‘Master Association’ which is the defendant. The boards of Meadows and Cedarwood, along with condominium unit owners David Braithwaite, Barbara Braithwaite and Catherine Fordham, are plaintiffs in the instant suit.

At LaBar Village’s inception, and continuing for some time thereafter, Mr. Wilson essentially maintained all officer positions associated with the creation and management of LaBar Village. Specifically, we note that Mr. Wilson was the president and secretary of LaBar Village Development Co., the signator and ‘Declarant’ of the Declaration. (N.T. July 31, 2012, 2nd master’s hearing, pg 371.) During his management of LaBar Village, Mr. Wilson sat on the board and appointed two other directors.

Under the terms of the declaration the declarant (in effect, Mr. Wilson) was to determine what was exclusive common area and general common area. All [105]*105neighborhoods would pay appropriate fees to maintain the general common area, while only specific neighborhoods would pay fees for the exclusive common area. Although necessary to determine the appropriate fees, the declarant never explicitly designated what areas were exclusive and general common area. Instead, the declarant assessed a flat percentage of LaBar village’s total expenses on each neighborhood. These percentages were not tailored to each neighborhood’s actual use or need

In 1997, the declarant rescinded control of the community, after having managed its budget and fee assessments for seven years.5 LaBar Village’s board of directors then maintained control of the budget and fee assessments until the current date. The declarant’s appointed board members continued on the board until 2007.

In 2007, for the first time, an entirely owner-chosen board was elected. (N.T. July 12, 2012, 1st master’s hearing, pg 235.) These directors unwittingly inherited the suspect budgeting practices of the former boards, believing the previous budgets to be properly prepared. Unbeknownst to them, these budget practices would be the focal point of a coming lawsuit.

In December of2007, David Braithwaite agreed to serve [106]*106as a reserve study specialist in order to help the defendant’s board plan for future financial needs. (N.T. July 12, 2012, 1st master’s hearing, pg 98.) Upon review of the LaBar Village’s budget, Mr. Braithwaite was concerned with certain charges assessed against condominium owners that he did not believe were for ‘general common areas’ under the terms of the declaration.6 In September 2008, during the annual budget meeting, he raised his concern that certain expenses should be neighborhood-specific. After mentioning the issue “the room erupted in chaos.” This chaos became the instant suit.

Prior to the suit, the defendant’s board formed a committeeandinvestigatedtheirowngovemingdocuments. They found that the declarant had failed to provide common area designations. In an attempt to remedy the situation, the defendant instructed its committee to investigate what should be exclusive and general common area. The committee presented its reports and the board adopted what they thought was intuitively fair: if an area is used by you, you ought to pay for it. However, this principle was applied in a general way and, like the previous budgets, did not track each neighborhood’s actual [107]*107use or need.7

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Bluebook (online)
29 Pa. D. & C.5th 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/labar-village-condominium-assn-v-labar-village-community-assn-pactcomplmonroe-2013.