Wittenburg v. Beachwalk Homeowners Ass'n

217 Cal. App. 4th 654, 158 Cal. Rptr. 3d 508, 2013 WL 3210811, 2013 Cal. App. LEXIS 512
CourtCalifornia Court of Appeal
DecidedJune 26, 2013
DocketG046891
StatusPublished
Cited by16 cases

This text of 217 Cal. App. 4th 654 (Wittenburg v. Beachwalk Homeowners Ass'n) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wittenburg v. Beachwalk Homeowners Ass'n, 217 Cal. App. 4th 654, 158 Cal. Rptr. 3d 508, 2013 WL 3210811, 2013 Cal. App. LEXIS 512 (Cal. Ct. App. 2013).

Opinion

Opinion

IKOLA, J.

Defendant Beachwalk Homeowners Association (association) held an election to amend its bylaws. Plaintiffs Paul Wittenburg and Raymond Dukellis filed suit to void the result of the election, claiming the association’s board of directors (the board) failed to comply with Civil Code section 1363.03, subdivision (a)(1) and (2). 1 Subdivision (a)(1) governs the use of “association media,” such as a newsletter or Web site, during a campaign. If an association permits any “candidate or member” to advocate a point of view using association media, the association must give members with opposing viewpoints equal access to the same media. Subdivision (a)(2) requires an association to permit free access to common areas for purposes reasonably related to an election. After a bench trial, the court entered judgment for the association, finding it violated neither subdivision.

Plaintiffs contend the court erred in three ways. First, they claim the court erroneously interpreted subdivision (a)(1) as containing an exception permitting the board to advocate a point of view using association media without triggering the equal-access requirement. Second, plaintiffs claim the court erroneously found certain communications from the board were merely informational rather than advocacy under subdivision (a)(1). Third, plaintiffs claim there is no substantial evidence supporting the court’s finding that the *658 association did not violate subdivision (a)(2) during the campaign. We agree on all three counts and reverse the judgment.

FACTS

Plaintiffs are individual homeowners and members of the association. The association is governed by a seven-member board who must be members of the association to serve and are elected by a vote of the members of the association.

The present conflict stems from paragraph 9 of the association’s covenants, conditions and restrictions (CC&R’s), which states, “no alterations, additions, or improvements, in connection with the common areas of the PRD [(Planned Residential Development)] shall be made at a cost of more than one thousand dollars ($1,000.00) without the approval of at least two-thirds (2/3) of the voting owners . ...” In October of 2010 plaintiffs sued the association, claiming the association had removed one pool, and were threatening to remove two more, without obtaining the two-thirds vote required by paragraph 9 of the CC&R’s. In November of 2010, the court granted a preliminary injunction preventing the removal of any more pools without obtaining the two-thirds vote required under paragraph 9. We refer to that lawsuit as the “pool litigation.”

Rather than obtain a two-thirds vote to remove the pools, the board instituted a series of elections to amend paragraph 9 of the CC&R’s to increase the dollar threshold for requiring a vote, and to reduce the number of votes required to approve expenditures. In November of 2010 the board sent a ballot and cover letter to the homeowners announcing an election to be held in December 2010. The cover letter, which was drafted by board members who supported the amendment, described paragraph 9 of the CC&R’s as “over broad, ambiguous, and open to interpretation on many levels.” The board warned, “As long as this subsection of the CC&R’s remains in force, there will be disputes about what constitutes an alteration or an improvement. Additionally, obtaining two-thirds voter approval of every project over $1000 will gridlock our operations and drive up our costs through constant ballots and legal expenses.” Accordingly, the board proposed the following revision to paragraph 9: “The Association shall maintain the common areas and Association-owned assets, except as otherwise provided in the CC&Rs. The spending for operational, maintenance, and repair expenses shall be limited by Section 1366 .... Moreover, the Board of Directors may not make capital improvements to the common areas in any one fiscal year in excess of two and one-half percent (2.5%) of the Association’s budgeted gross expenses for *659 that year without the approval of a majority of the membership.” 2 The letter praised this alternative as more flexible and reasonable, while still “a workable method of fiscal restraint.” The letter concluded by warning, “If we don’t take action now to resolve the situation with the CC&Rs, the Association is destined to become further mired in conflict and expensive litigation.” As one board member at trial commented, the letter “is making a strong case” in favor of the amendment and agreed it was “encouraging them to vote yes on Amendment 8.”

Accompanying the letter was a one-page attachment containing a section entitled “Case for amending the CC&Rs,” and another section entitled “Case against amending the CC&Rs.” The document was written by board members who supported the amendment. The board did not ask any opposing members for written input for the “Case against,” but did listen to their arguments at homeowner forums and attempted to incorporate those arguments. The board specifically decided not to include any opposition material.

The board’s proposal generated significant interest in the community. Fliers circulated throughout the community on almost a weekly basis.

Shortly after the board sent out the election materials, a homeowner requested use of the “rental side” of the clubhouse to put on a “town hall meeting” to support other candidates for the board who had a different view than the view expressed by the current board regarding the amendment. The association’s clubhouse is divided between one side available for free and another available for rental. The rentals are handled through the community manager and generally rental requests do not come before the board. The homeowner tendered a check to the community manager for $200 representing the cleaning deposit, believing he did not have to pay the usual $90 rental fee under subdivision (a)(2). Two days later, however, the community manager called the homeowner and stated the board had rejected the request to use the clubhouse for free. Accordingly, the homeowner paid the additional $90 fee. At trial one of the board members in support of the amendment testified the homeowner request never came before the board because it went through the community manager, but also acknowledged the board should have given the homeowner a refund.

In order to pass outright under the CC&R’s, the amendment required a yes vote from 75 percent of the members of the association. The board’s aim, however, was more modest; a yes vote from 50 percent of the members, which would allow the board to file a petition to have the CC&R’s amended *660 under section 1356, subdivision (c)(4). To achieve 50 percent, the board needed 227 yes votes. The December 2010 election fell short of that, gamering 188 yes votes, which amounted to 64 percent of the votes that were cast, but not 50 percent of the total number of association members.

The board scheduled another election for April of 2011. In February of 2011 the board sent ballots and voting materials to all of the members.

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Bluebook (online)
217 Cal. App. 4th 654, 158 Cal. Rptr. 3d 508, 2013 WL 3210811, 2013 Cal. App. LEXIS 512, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wittenburg-v-beachwalk-homeowners-assn-calctapp-2013.