Park Hoover Village Condominium Ass'n v. Ardsley/Park Hoover Ltd. Partnership

766 N.E.2d 13, 2002 Ind. App. LEXIS 536, 2002 WL 524365
CourtIndiana Court of Appeals
DecidedApril 9, 2002
Docket49A04-0106-CV-268
StatusPublished
Cited by2 cases

This text of 766 N.E.2d 13 (Park Hoover Village Condominium Ass'n v. Ardsley/Park Hoover Ltd. Partnership) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Park Hoover Village Condominium Ass'n v. Ardsley/Park Hoover Ltd. Partnership, 766 N.E.2d 13, 2002 Ind. App. LEXIS 536, 2002 WL 524365 (Ind. Ct. App. 2002).

Opinion

OPINION

FRIEDLANDER, Judge.

Park Hoover Village Condominium Association, Inc., its Board of Directors, and its Election Committee (referred to collectively as "the Association") appeal the trial court's granting of a temporary restraining order and subsequent permanent injuncetion requiring the Association to place Jane Yale on the ballot as a candidate for its annual Board of Directors election. 1 The Association presents the following restated issues for review:

1) Did the trial court err by denying the Association's motion to dismiss for lack of subject-matter jurisdiction?
2) Is Yale an eligible candidate for the Board pursuant to the By-Laws of the Association?
3) Did the trial court err in dismissing the Association's counterclaim?

We affirm.

Park Hoover Village Condominiums (Park Hoover) is a community of 162 units, located at 6442 Park Central Way in Indianapolis, Ardsley Park Hoover, Limited Partnership (Ardsley Park Hoover) is an Indiana limited partnership with Ardsley Realty Corporation (Ardsley Realty), an Indiana corporation, serving as its general partner. 2 Jane Yale is the Secretary of Ardsley Realty,. In October 2000, Ardsley Park Hoover owned twenty-eight units at Park Hoover.

The Association is an Indiana not-for-profit corporation, consisting of all unit owners at Park Hoover. Each fall, the Association conducts an election of its Board of Directors (the Board). On September 11, 2000, notice of the annual election was sent to unit owners. Yale was timely nominated as a candidate for the Board. On September 25, the same day ballots were mailed to unit owners, the Association's attorney sent a letter to Yale, via certified mail to Yale's attorney, advising her that she could not be placed on the ballot because she was not "a record owner of a Park Hoover Village Condominium unit as is required for eligibility pursuant to the governing documents of the Condominium." Appellant's Appendix at 250. The ballot was issued without Yale being listed as a candidate. Yale immediately responded in writing, advising that the Association's action was contrary to the By-Laws and demanding that a revised ballot be issued. The Association refused *15 to place Yale on the ballot for the election scheduled for October 10, 2000.

On October 4, Ardsley Park Hoover, Ardsley Realty, and Yale (referred to collectively as "Yale") filed their Verified Complaint for Temporary Restraining Order, Preliminary and Permanent Injunetion, and Declaratory Relief against the Association, asking the trial court to stop the scheduled election, declare Yale eligible, and order the Association to include her on the ballot. That same day, the trial court entered a temporary restraining order, prohibiting the Association from proceeding with the scheduled election. The Association filed a counterclaim for damages and attorney fees, alleging the temporary restraining order was wrongfully issued. The Association later filed a motion ~ to dismiss for lack of subject-matter jurisdiction.

On April 16, 2001, the trial court held a hearing on Yale's complaint for permanent injunction and declaratory relief, Thereafter, on May 10, the trial court denied the Association's motion to dismiss. On May 23, the court issued its Findings of Fact, Conclusions of Law, and Order of Judgment, granting the relief sought by Yale and dismissing the Association's counterclaim. The Association now appeals.

1.

The Association initially argues that the trial court lacked subject-matter jurisdiction in this case. Relying on Givens v. Superior Ct. of Marion County, 233 Ind. 235, 117 N.E.2d 553 (1954), and its progeny, the Association contends that it is a voluntary association and, as such, the courts cannot interfere with its internal affairs, absent fraud, illegality, or abuse of civil or property rights having their origin elsewhere.

In Givens, members of a voluntary trade union sought injunctive relief to force the acting officers to hold an election and place certain names as candidates on the ballot. Our supreme court held that the trial court lacked subject-matter jurisdiction to interfere with the election, explaining:

A voluntary association may, without direction or interference by the courts, for its government, adopt a constitution, by-laws, rules and regulations which will control as to all questions of discipline, or internal policy and management, and its right to interpret and administer the same is as sacred as the right to make them.
As a general rule courts will not interfere to control the administration of the constitution and by-laws of such association, or to enforce rights springing therefrom.
The jurisdiction and power of courts of equity to issue restraining orders is limited to the protection of civil and property rights.
c
The duty sought to be enforced is not one prescribed by the laws of the State of Indiana, but is one enjoined only by the constitution of the association (union).
* ose
Any attempt by the courts to compel the officers of the union to perform their duties pertaining to the election of officers, which duties are enjoined solely by the constitution of the union, would be an unlawful interference with, and a regulation of, its internal affairs.

Id. at 238-39, 117 N.E.2d at 555 (citations omitted).

Our supreme court has recently applied Givens in the context of a not-for-profit corporation. In IHSAA v. Reyes, 694 N.E.2d 249 (Ind.1997), the court held that, as to member schools, the Indiana High *16 School Athletic Association (IHSAA) is a voluntary membership association subject to the following rule:

Absent fraud, other illegality, or abuse of civil or property rights having their origin elsewhere, Indiana courts will not interfere in the internal affairs of voluntary membership association. This means, inter alia, that Indiana courts will neither enforce an association's interpretation or application of its rules.

Id. at 256 (citations omitted). The rule has also been applied in other settings involving not-for-profit corporations where membership is voluntary. See e.g., Lozanoski v. Sarafin, 485 N.E.2d 669 (Ind.Ct.App.1985) (church), trans. denied; Orchard Ridge Country Club, Inc. v. Schrey, 470 N.E.2d 780 (Ind.Ct.App.1984) (country club).

In the instant case, however, we do not believe the Association constitutes a voluntary membership association. Initially, we observe that membership in the Association is required upon ownership of a unit at Park Hoover. 3

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766 N.E.2d 13, 2002 Ind. App. LEXIS 536, 2002 WL 524365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/park-hoover-village-condominium-assn-v-ardsleypark-hoover-ltd-indctapp-2002.