Ochs v. L'Enfant Trust

504 A.2d 1110, 1986 D.C. App. LEXIS 276
CourtDistrict of Columbia Court of Appeals
DecidedJanuary 31, 1986
Docket84-1540
StatusPublished
Cited by7 cases

This text of 504 A.2d 1110 (Ochs v. L'Enfant Trust) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ochs v. L'Enfant Trust, 504 A.2d 1110, 1986 D.C. App. LEXIS 276 (D.C. 1986).

Opinion

PAIR, Senior Judge:

Appellant Laurance J. Ochs is an owner in fee simple of a unit in the West End Condominium on 21st Street, Northwest, and a member of its owner association, appellee West End Condominium Association (hereinafter the “Association”). Brought into question in this appeal are separate orders of the Superior Court which together validated the Association’s grant of a conservation easement to appel-lee L’Enfant Trust (hereinafter the “Trust”), upheld the Association’s special assessment to appellant for use in financing the easement, and awarded the Association attorney fees in connection with the litigation in the amount of $10,000.

As grounds for reversal, appellant principally maintains that (1) the grant of the conservation easement was not in accordance with law and the condominium documents; (2) the Association’s allocation of the easement assessment to less than all of its members was improper; and (3) the trial court erroneously included in its award of attorney fees the costs and legal expenses incurred by the Association in defending his suit to have the easement grant declared void. We agree only with appellant’s last contention and, accordingly, remand this case to the trial court for further proceedings on this issue.

I

The Association is comprised of the owners of 34 units in the West End Condominium, a “horizontal property regime” recognized as such under the District of Columbia Condominium Act of 1976, D.C. Code § 45-1801 et seq. (1981). In late 1981, the Association was approached by the Trust, a non-profit foundation, regarding the possibility of the Association donating to it a “conservation easement” in the facade of the condominium building. • The proposed easement was designed primarily to help *1112 preserve the historic nature of the neighborhood, which is known to some as the DuPont Circle Historic District. The easement would constitute an encumbrance on the property and would grant to the Trust the right to review and approve any Association decision affecting the exterior of the building, whether structural or cosmetic in nature. The condominium owners would be directly affected by the conveyance of the easement, particularly insofar as it encumbered their individual, undivided percentage interests in the building’s facade, which is designated a “common element” in the condominium instruments.

The events which precipitated the granting of the conservation easement to the Trust were as follows. In May 1982, the President of the Association’s Board of Directors, Mr. Gordon .Binder, circulated a memorandum to all condominium owners notifying them of the Association’s upcoming “special” mid-year meeting. The memorandum placed on the meeting’s agenda a discussion of the proposed conservation easement and explained its purpose and ramifications. It was noted that the easement “would convey an ownership interest” in the property to the Trust and would be financed by the Association through a special assessment on unit owners. The owners were told, however, that they “should realize ... a charitable deduction on their income taxes” as a result of the conveyance. The owners were informed further that the grant would require an amendment to the condominium declaration and by-laws, which itself would require approval by two-thirds of the Association members. For this reason, a proposed bylaws amendment was attached to the memorandum.

The special mid-year meeting was held in June 1982 and, according to its recorded minutes, the proposed conservation easement was discussed at length. A representative of the Trust attended the meeting and explained that “[bjecause the easement donation [would be] granted in perpetuity, it constitutes an encumbrance and ... it qualifies as a charitable donation worth by some estimates 10% of the market value of the property.” It was clarified that the Association would have to comply with the condominium instruments in granting the easement, including the requirement that two-thirds of the owners assent to the conveyance. Ultimately, on motion, a vote was taken to grant the easement and to amend the by-laws to implement the donation. Although the motion was defeated, a related motion to authorize the Association’s Board of Directors to pursue the subject more thoroughly was unanimously approved. Thereafter, the Board filed a preliminary application with the Trust to ascertain whether it would accept the conservation easement, commissioned an appraiser, and obtained a letter ruling from the Internal Revenue Service that the Trust qualified as a tax exempt organization.

On September 20, 1982, the Association’s Board of Directors met and discussed, among other things, the proposed easement. At the meeting, Binder presented to the Board a progress report which included a tentative timetable for approval and conveyance of the easement to the Trust. Mr. Dale Kenney, the Secretary of the Association, reported that the appraiser had valued the condominium building at nearly 3.5 million dollars and had valued the easement donation at slightly over $265,000, or approximately 8% of the building’s appraised value. But no further action regarding the easement was taken at the Board’s September meeting.

A few days later, Binder received the formal appraisal on the values of the property and the proposed conservation easement. It was estimated that the property had a pre-easement value of $3,315,810, which would be reduced to $3,050,545 in the event the easement was conveyed. In detailed findings, the appraiser represented that the “easement directly preserves the facade of the subject property, thus insuring the architectural integrity inherent to the building, and complementing and pre *1113 serving the historic significance of the neighborhood environment.” The appraiser enumerated, however, those factors contributing to the adverse impact the easement could have on the building’s value, including the following: slightly greater insurance premiums; additional legal expenses over the years; possible lender resistance in a future sale or refinancing resulting possibly in more expensive financing; increased costs of eventual repairs to the facade; loss of the potential for future “higher and better use of the land”; restrictions on exterior alteration or modification; inconvenience of facade inspections; possible delays in obtaining approval for desired repairs; and the possibility of a lien being placed on the property for restoration of the facade.

On October 1, 1982, the Association’s Board of Directors circulated a detailed memorandum to all unit owners on the proposed conservation easement, the purpose of which was to poll the Association for a final vote on whether it should donate the easement to the Trust. The owners were asked “to vote, as a package, on amending the Declaration and the By-laws and on levying a special assessment of $17,263 to pay the required contribution to the Trust and the other costs of this transaction.

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Cite This Page — Counsel Stack

Bluebook (online)
504 A.2d 1110, 1986 D.C. App. LEXIS 276, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ochs-v-lenfant-trust-dc-1986.