Steele v. Diamond Farm Homes Corp.

The Court of Appeals affirmed the decision of the circuit court ruling in favor of a homeowner's association (Association) on its lawsuit against Diane Steele for unpaid assessments, holding that Steele owed the Association dues in the amount of $1,257.60.Steele owned a home in the Diamond Farm development of Montgomery County, which was managed by the Association. While in accordance with the Association's declaration of covenants, conditions and restrictions, the Association must obtain at least two-thirds of the members' total votes to increase annual assessments, assessment increases in 2007, 2011, and 2014 did not receive the requisite two-thirds vote for approval. Consequently, Steele ceased making payments. The Association subsequently brought suit seeking unpaid assessments and attorney's fees. The district court entered judgment in Steele's favor because the Association failed to establish the amount of dues owed. On de novo appeal, the circuit court ruled in favor of the Association. The Supreme Court affirmed, holding (1) the ultra vires statute, Md. Code Ann. Corps. & Ass'ns. 1-403, and the doctrine of equitable estoppel operated as a bar to Steele's defense that the Association's fee increase were invalid; and (2) the circuit court did not abuse its discretion in awarding $1,257.60 in attorney's fees. View "Steele v. Diamond Farm Homes Corp." on Justia Law