Nick Bajada and Erin Bajada v. Crystal Lake Property Owners' Association, Inc.

CourtIntermediate Court of Appeals of West Virginia
DecidedJuly 30, 2024
Docket23-ica-292
StatusPublished

This text of Nick Bajada and Erin Bajada v. Crystal Lake Property Owners' Association, Inc. (Nick Bajada and Erin Bajada v. Crystal Lake Property Owners' Association, Inc.) is published on Counsel Stack Legal Research, covering Intermediate Court of Appeals of West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nick Bajada and Erin Bajada v. Crystal Lake Property Owners' Association, Inc., (W. Va. Ct. App. 2024).

Opinion

IN THE INTERMEDIATE COURT OF APPEALS OF WEST VIRGINIA FILED July 30, 2024 NICK BAJADA and ERIN BAJADA, ASHLEY N. DEEM, CHIEF DEPUTY CLERK Defendants Below, Petitioners INTERMEDIATE COURT OF APPEALS OF WEST VIRGINIA

v.) No. 23-ICA-292 (Cir. Ct. of Jefferson Cnty., Case No. CC-19-2021-C-5)

CRYSTAL LAKE PROPERTY OWNERS’ ASSOCIATION, INC., Plaintiff Below, Respondent

MEMORANDUM DECISION

Petitioners Nick Bajada and Erin Bajada (“Bajadas”) appeal three orders from the Circuit Court of Jefferson County: the January 10, 2023, order denying the Bajadas’ motion to dismiss, the January 10, 2023, order granting Respondent Crystal Lake Property Owners’ Association, Inc.’s (“Crystal Lake”) summary judgment on all claims, and the June 15, 2023, final order awarding Crystal Lake damages and attorney’s fees. Crystal Lake filed a response.1 The Bajadas filed a reply.

This Court has jurisdiction over this appeal pursuant to West Virginia Code § 51- 11-4 (2022). After considering the parties’ arguments, the record on appeal, and the applicable law, this Court finds no substantial question of law and no prejudicial error. For these reasons, a memorandum decision affirming the circuit court’s orders is appropriate under Rule 21 of the Rules of Appellate Procedure.

Established on May 2, 1983, Crystal Lake is a nonprofit corporation which operates as the homeowners’ association of the Valley View subdivision. The subdivision was created on June 7, 1972, and its plats were recorded with the County Clerk of Jefferson County on August 29, 1974, and September 15, 1975. The plats reference jointly owned community properties, including a 1.81-acre recreational reserve area (“Recreational Area”). The Bajadas are members of Crystal Lake, having acquired Lots 31, 32, 35, and a portion of Lot 33 within the subdivision on January 15, 2016. It is undisputed that the subdivision is governed by Crystal Lake and that Crystal Lake has bylaws which provide for its governance and management through a five-member board of directors.

On January 14, 2021, Crystal Lake filed a complaint against the Bajadas in circuit court, seeking a declaratory judgment, injunctive relief, and damages, which resulted from

1 On appeal, the Bajadas are self-represented. Crystal Lake is represented by Christopher K. Robertson, Esq., and Christopher P. Stroech, Esq.

1 the Bajadas’ construction and use of an access road through the subdivision’s Recreational Area. This construction resulted in the removal of several trees, vegetation, and topsoil. The Bajadas stated they constructed the road to gain more convenient access to Lot 35 where they operated a farm for business purposes, and that they used the road as ingress and egress to the farm for their vehicles and farm equipment.

On February 23, 2021, the Bajadas filed their answer and asserted a counterclaim, alleging that Crystal Lake had breached various fiduciary duties it owed to Crystal Lake’s members and sought court costs, attorney’s fees, and punitive damages. These alleged violations included Crystal Lake’s failure to enforce its governing documents, failure to limit expenditures, committing certain unauthorized actions without a vote of its members, and committing several violations of the Uniform Common Interest Ownership Act, West Virginia Code §§ 36B-1-101 to -4-120.

On August 23, 2022, Crystal Lake filed an amended complaint, adding a breach of contract claim for the Bajadas’ failure to pay membership assessments for the past three years. In total, the amended complaint alleged three causes of action: declaratory judgment (Count I); trespass and damage to the subdivision’s community property (Count II); and breach of contract (Count III). Crystal Lake sought injunctive relief, remediation costs for the Recreation Area, judgment for the Bajadas’ unpaid membership assessments, and attorney’s fees and costs. On September 7, 2022, the Bajadas filed an answer to the amended complaint and reasserted their existing counterclaim.2

Crystal Lake filed a motion for summary judgment as to the Bajadas’ counterclaim on October 5, 2022, and on October 10, 2022, it filed a motion for summary judgment on its claims under the amended complaint. On October 19, 2022, the Bajadas, appearing self- represented, filed a motion to dismiss, alleging for the first time that Crystal Lake did not have the authority to file its original complaint in January of 2021 because at that time, Crystal Lake’s five-member board only had four members.3 The Bajadas maintained that the lack of a fifth member rendered Crystal Lake defunct and under its bylaws it had no authority to take action until the board vacancy was filled.

On January 10, 2023, the circuit court entered two of the three orders now on appeal. First, it entered its order denying the Bajadas’ motion to dismiss. In this order, the circuit court found that notwithstanding its one vacancy, Crystal Lake’s bylaws and the provisions

2 Based upon the record, the Bajadas were represented by counsel for a portion of this litigation. The record reflects that counsel filed the answer to the amended complaint and answered some discovery requests. From the record, the Bajadas have appeared as self- represented litigants since October 19, 2022. 3 According to the record, the fifth board member had recently resigned because she had sold her home and moved out of the subdivision. 2 of the West Virginia Nonprofit Corporation Act state that only a majority of its governing board is required to have a quorum.4 See W. Va. Code § 31E-8-824 (2002) (stating a majority of board members constitutes a quorum and a majority vote constitutes an action of the board). The circuit court determined that as a five-member board, three board members constituted a quorum and were required to be present at meetings for Crystal Lake to take official action and, thus, its four members had the authority to authorize the filing of the original complaint on January 14, 2021.

The circuit court also entered its order granting Crystal Lake summary judgment on its claims under the amended complaint, as well as on the Bajadas’ counterclaim. The circuit court found that Crystal Lake was entitled to summary judgment on Counts I and II of its amended complaint because the Bajadas had constructed an unauthorized road and damaged the subdivision’s jointly owned community property. On this issue, the circuit court also rejected the Bajadas’ claim that there was no language in their chain of title that provided that the Recreational Area had to be used exclusively for recreational purposes, prohibited construction of the road, or prevented them from taking unilateral action. In support of their position, the Bajadas pointed to language from a corrective deed dated November 7, 1975, which stated “common with the other lot owners the non-exclusive right to use the two recreational reserves designated on the plat recorded in Plat Book 3, at page 81.” The circuit court found that this language was the same ordinary use language found in every deed conveying a lot within the Valley View subdivision, that the language ensured each Crystal Lake member had the right to access the area for recreational use, and that the language did not permit any individual member to unilaterally alter the area for their own purposes, including the Bajadas’ construction of a road.

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Bluebook (online)
Nick Bajada and Erin Bajada v. Crystal Lake Property Owners' Association, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/nick-bajada-and-erin-bajada-v-crystal-lake-property-owners-association-wvactapp-2024.