Mulligan v. Campden Lakes Assn. Inc.

2012 Ohio 3121
CourtOhio Court of Appeals
DecidedJune 27, 2012
Docket11CAE100095
StatusPublished

This text of 2012 Ohio 3121 (Mulligan v. Campden Lakes Assn. Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mulligan v. Campden Lakes Assn. Inc., 2012 Ohio 3121 (Ohio Ct. App. 2012).

Opinion

[Cite as Mulligan v. Campden Lakes Assn. Inc., 2012-Ohio-3121.]

COURT OF APPEALS DELAWARE COUNTY, OHIO FIFTH APPELLATE DISTRICT

JAMES M. MULLIGAN, ET AL. JUDGES: Hon. Patricia A. Delaney, P.J. Plaintiffs-Appellants Hon. William B. Hoffman, J. Hon. Sheila G. Farmer, J. -vs- Case No. 11CAE100095 CAMPDEN LAKES ASSOCIATION INC.

Defendant-Appellee OPINION

CHARACTER OF PROCEEDING: Appeal from the Delaware County Court of Common Pleas, Case No. 08 CVH 09 1261

JUDGMENT: AFFIRMED

DATE OF JUDGMENT ENTRY: June 27, 2012

APPEARANCES:

For Plaintiffs-Appellant For Defendant-Appellee

JOHN M. GONZALES HEATHER R. ZILKA The Behal Law Group LLC M. ANDREW SWAY 501 South High Street Smith, Rolfes & Skavdahl Co., LPA Columbus, Ohio 43215 65 East State Street, Suite 2000 Columbus, Ohio 43215 Delaware County, Case No. 11CAE100095 2

Delaney, P.J.

{¶1} Plaintiffs-appellants James M. Mulligan and Kathleen Mulligan appeal the

September 21, 2011 Judgment Entry entered by the Delaware County Court of

Common Pleas granting summary judgment in favor of Defendant-appellee Campden

Lakes Association Inc.

FACTS AND PROCEDURAL HISTORY

{¶2} Appellants James M. and Kathleen Mulligan own property commonly

known as 4875 Aberdeen Avenue, Dublin, Ohio 43016, purchased on or about

September 10, 2001. At the time Appellants purchased the property, the Campden

Lakes Association Inc. had been formed through a Limited Warranty Deed. The

Campden Lakes Association Inc. (hereinafter “Association”) is a homeowner’s

association vested with the authority to enforce the Limited Warranty Deed in the

Campden Lakes subdivision, in which Appellants’ property is located.

{¶3} The Limited Warranty Deed authorizes the Association to levy

assessments as necessary for the benefit of the homeowners association. Article I of

the Limited Warranty Deed dated January 28, 1997 sets forth the following relevant

definitions:

§1.01 Assessments: shall mean Base Assessments, Individual

Assessments and Special Assessments.

§1.04 Base Assessment: shall mean those charges levied and collected

by the Association from Owners of Lots to fund Common Expenses.

§1.08 Common Expenses: shall mean all expenses incurred by the

Association in connection with its ownership and/or maintenance of the Delaware County, Case No. 11CAE100095 3

Common Property, including but not limited to maintenance of the median

strips, cul-de-sac open space, maintenance of the pump stations and

lakes, maintenance of the property other than Common Property as

provided herein, real estate taxes and assessments, if any, attributable to

the Common Property, utilities for the Common Property and all other

expenses of any kind incurred in connection with the performance affairs

and general discharging the duties and obligations imposed upon it by the

Protective Covenants or assumed by it pursuant to authorization granted

by these Protective Covenants.

§1.24 Special Assessment: shall mean those charges levied and collected

by the Association from Owners of Lots to fund extraordinary expenses

which are not included in the Association’s budget.

{¶4} The Limited Warranty Deed further sets forth the duties of the Association

Board in Article II as follows:

§2.03 Authority to Maintain Surplus. The Association shall be obligated to

spend in any particular year or time period all sums collected or received

by it in such year or time period may carry forward, as surplus, any

balances remaining without any obligation to apply such surplus against

the budget for the current or next ensuing year.

§2.06 Base Assessments. The Board shall annually estimate the

Common Expenses and other expenses, if any, it expects the Association

to incur in the Association’s next ensuing fiscal year (which may be a

calendar year – as determined by the Board from time to time) for the Delaware County, Case No. 11CAE100095 4

maintenance, operation and management of the Association, including the

Common Property, and shall assess sufficient Bases Assessments (which

may include amounts for a reasonable reserve fund- as may be

determined by the Board) to meet this estimate. All Lots shall be

assessed for the Base Assessments at a uniform rate. The Base

Assessment for calendar year 1996 shall be Two Hundred Dollars ($200),

provided that the Base Assessment for such year may be increased in

order to pay for any real property taxes or assessments which may be

payable to governmental authorities with respect to the Common Property.

§2.07 Special Assessment. In the event during the course of the fiscal

year the Board should determine that the Base assessments are

insufficient to meet an extraordinary expense not originally part of the

Association’s budget, the Board may levy a Special Assessment to cover

such extraordinary expense. All Lots shall be assessed for Special

Assessments at a uniform rate; provided, however, such rate may be

prorated for any Lots which were not Lots for the entire calendar year.

Notwithstanding anything to the contrary herein contained, it is recognized

and declared that any Special Assessment shall be in addition to and not

part of any Base Assessment, and any such Special Assessment

assessed against Lots shall be paid by such Owners in addition to any

Base Assessments. Special Assessments shall be paid in installments or

in lump sum as the Board shall determine. Delaware County, Case No. 11CAE100095 5

{¶5} According to a letter from Jim Scowden, the President of the Association,

to Appellant James Mulligan dated March 25, 2007, at the Association’s meeting in

November, 2006, the Association voted to levy a “special assessment” in the amount of

$200.00 to be “designated a Contingency Reserve.” The letter further stated:

This reserve is to be used for unexpected expenses outside the base

assessments annual budget. The Board has agreed that the irrigation

system and pumps repair, the well pump and dam repair, any vandalizing

of community property or seating area, replacing common property dead

landscaping as well as other unforeseen emergencies would constitute a

contingency expense.

Scowden’s letter indicates the special assessment would sit in reserve, to be used for

an unbudgeted expense at a later date.

{¶6} Appellants did not pay the special assessment; rather, instead sending a

letter of explanation as to why they withheld the $200 levied for the special assessment.

Appellants paid the 2007 base assessment.

{¶7} On July 12, 2007, Appellants received a letter by regular mail indicating a

lien would be placed on their property if all assessments were not paid on or before

August 7, 2007. On or about September 19, 2007, the Association filed a lien against

Appellants’ property.

{¶8} Appellants filed a complaint in the Delaware County Court of Common

Pleas challenging assessments levied by the Association as a breach of contract, the

Associations denial of their right to an accounting, and bringing an action for slander of

title. The Association then moved for summary judgment on all counts. Via Judgment Delaware County, Case No. 11CAE100095 6

Entry of September 21, 2011, the trial court granted summary judgment in favor of the

Association, dismissing Appellants’ complaint with prejudice.

ASSIGNMENTS OF ERROR

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2012 Ohio 3121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mulligan-v-campden-lakes-assn-inc-ohioctapp-2012.