Ostrowski v. Ivanhoe Property Owners Improvement Ass'n

38 S.W.3d 248, 2001 WL 59575
CourtCourt of Appeals of Texas
DecidedFebruary 21, 2001
Docket06-00-00004-CV
StatusPublished
Cited by34 cases

This text of 38 S.W.3d 248 (Ostrowski v. Ivanhoe Property Owners Improvement Ass'n) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ostrowski v. Ivanhoe Property Owners Improvement Ass'n, 38 S.W.3d 248, 2001 WL 59575 (Tex. Ct. App. 2001).

Opinion

OPINION

Opinion by Chief Justice CORNELIUS.

In this case we address two appeals arising from a declaratory judgment action by a group of lot owners against the Ivanhoe Property Owners Improvement Association, Inc. (the Association). In the first appeal, the lot owners appeal from the trial court’s summary judgment declaring, *251 among other things, that in the future the fees lot owners are required to pay may be increased by vote of a majority of those voting, which the owners allege violates the provisions in various dedicatory instruments. In the second appeal, the Association appeals the trial court’s judgment invalidating previously assessed fees. The Association alternatively contends that the owners have waived their right to recover the previously paid fees, or have ratified their assessment, so the trial court erred in denying the Association’s claim against the owners for collection of past due assessments and attorney’s fees for enforcing such assessments. We reverse and render judgment on the owners’ motion for partial summary judgment, and remand for a determination of their reasonable attorney’s fees. The Association’s claim for collection of past due fees and the owners’ claims for reimbursement of past paid fees are severed and remanded to the trial court for trial.

Various land owners in fourteen of twenty-three Ivanhoe Land of Lakes subdivisions (Ivanhoe) sued, seeking a declaration by the trial court that the Association’s method of raising property assessments violated the restrictive covenants of various subdivisions in the community and the Maintenance Fund Agreement (MFA) executed by the developer of Lake Ivanhoe and the Association in 1964. The Association eventually became an incorporated nonprofit association. 1 The MFA granted the Association certain enumerated powers, including the collecting and expending of maintenance fees, to be applied for the benefit of the entire subdivision. Section 4 of the MFA provides that the original maintenance charge would extend for fifteen years after the creation of the community and for successive periods of ten years thereafter “unless the owners of the majority of the lots paying such charge vote to discontinue such charge.” Further, Section 5 provides, “Such annual charges or dues may be adjudged [sic] from year to year by said association as the need to the property may, in its judgment, require but in no event shall such charge be raised unless approved by a majority vote of the lot owners.”

For the first fifteen subdivisions, the MFA provided for a $6.00 maintenance charge with no provision for an increase. The next three were subject to a $6.00 charge plus an additional $36.00 charge per lot for repair, maintenance, and upkeep of common areas within those specific subdivisions. 2 For the last five subdivisions, there was a $120.00 charge per year, which the Association may not raise more than ten percent without a vote of the membership.

The owners contend that Section 5 of the MFA prohibits an increase in the fees unless such an increase is approved by a majority of the lot owners, and that the Association was not authorized to raise maintenance fees simply by obtaining a majority vote of the members present at a duly called meeting at which a quorum was present. 3 Despite the above language in the MFA, the Association conducted seven votes of lot owners attending the meetings, *252 each time increasing the amount of maintenance fees to be collected. 4 The Association argued that even if the MFA required a majority vote of all lot owners, the owners were not entitled to relief because the elections it conducted were consistent with the Association’s bylaws and, furthermore, the owners had ratified the elections, or had waived their right to complain.

The trial court construed the language of Section 5 of the MFA to mean that maintenance fees could be increased on a vote of the majority of lot owners voting at the meeting where a quorum was present. The court further held that these votes were to be held on a subdivision-by-subdivision basis, with voting open to all owners of lots in the particular subdivision conducting the election. 5 Finally, the court held that the increases passed in 1988, 1990, and 1991 were not enforceable, but the owners were not entitled to a reimbursement of the existing increases paid prior to or after the date of the judgment. 6 Accordingly, each party was required to pay its own court costs and attorney’s fees.

A summary judgment is proper only when the movant establishes that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. See Tex.R.Civ.P. 166a. In deciding whether there is a disputed material fact issue precluding summary judgment, evidence favorable to the nonmovant will be taken as true, and every reasonable inference and doubt must be indulged and resolved in the nonmovant’s favor. Nixon v. Mr. Property Mgmt. Co., 690 S.W.2d 546, 548-49 (Tex.1985). When both parties move for summary judgment, the non-prevailing party may appeal both the granting of the prevailing party’s motion and the denial of its own motion. See Holmes v. Morales, 924 S.W.2d 920, 922 (Tex.1996); Tobin v. Garcia, 159 Tex. 58, 316 S.W.2d 396, 400 (1958). We liberally construe appeals involving cross-motions for summary judgment, and if the point of error sufficiently shows that the appellant is contesting both the granting of the ap-pellee’s motion and the denial of its own motion, we will consider both issues. See Runyan v. Mullins, 864 S.W.2d 785, 787-88 (Tex.App.-Fort Worth 1993, writ denied). In addition, when reviewing cross-motions for summary judgment, we consider all the summary judgment proof and determine all questions presented. Commissioners Court of Titus County v. Agan, 940 S.W.2d 77, 81 (Tex.1997). We may affirm the trial court’s summary judgment or reverse and render judgment on the nonprevailing party’s motion. See Holmes v. Morales, 924 S.W.2d at 922; Jones v. Strauss, 745 S.W.2d 898, 900 (Tex.1988).

The essential question in this case is the proper legal construction of the provisions in the MFA relating to the manner in which a vote to amend maintenance charges must be conducted. Restrictions in dedicatory instruments such as the MFA are treated as contracts between parties. See Herbert v. Polly Ranch Homeowners Ass’n, 943 S.W.2d 906, 907-08 (Tex.App.-Houston [1st Dist.] 1996, no writ). Accordingly, instruments such as the MFA and restrictive covenants are subject to the general rules of contract construction.

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Bluebook (online)
38 S.W.3d 248, 2001 WL 59575, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ostrowski-v-ivanhoe-property-owners-improvement-assn-texapp-2001.