Civil Action - Dispute Resolution And Enforcement - CA Civil Law

Section § 5975

If you live in a housing development with shared rules (called covenants), these rules are generally binding on everyone unless they're found to be unreasonable. All homeowners and the homeowners' association can enforce these rules unless stated otherwise. Additionally, other documents besides the main declaration can also be enforced by either the homeowners' association or individual homeowners. If someone has to go to court to enforce these rules, the winner can get their legal costs covered.

(a) The covenants and restrictions in the declaration shall be enforceable equitable servitudes, unless unreasonable, and shall inure to the benefit of and bind all owners of separate interests in the development. Unless the declaration states otherwise, these servitudes may be enforced by any owner of a separate interest or by the association, or by both.

(b) A governing document other than the declaration may be enforced by the association against an owner of a separate interest or by an owner of a separate interest against the association.

(c) In an action to enforce the governing documents, the prevailing party shall be awarded reasonable attorney’s fees and costs.

covenants declaration equitable servitudes homeowners association separate interests governing documents unreasonable restrictions attorney's fees housing development rules enforceable agreements prevailing party legal costs binding rules property owners rule enforcement

(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)

Section § 5980

This law allows a community association to start, defend, settle, or get involved in legal actions or other formal proceedings on its own behalf without involving individual members. The association can do this when the case involves enforcing the community's rules, damage to shared areas, or damage to specific properties that the association is responsible for maintaining or repairing. Additionally, it covers situations where damage to individual properties is linked to damage to shared areas or other properties.

An association has standing to institute, defend, settle, or intervene in litigation, arbitration, mediation, or administrative proceedings in its own name as the real party in interest and without joining with it the members, in matters pertaining to the following:

(a) Enforcement of the governing documents.

(b) Damage to the common area.

(d) Damage to a separate interest that arises out of, or is integrally related to, damage to the common area or a separate interest that the association is obligated to maintain or repair.

association standing real party in interest governing documents enforcement damage to common area damage to separate interest maintenance obligations repair obligations litigation arbitration mediation administrative proceedings community association property damage shared areas legal actions

(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)

Section § 5985

This section talks about how damages are calculated when an association, like a homeowners' association, sues for damages. If the association or its managers are partly at fault, the damages they get will be reduced by their share of the fault. This fault can be used as a defense in court, but can't be the basis for a separate lawsuit against them if the only harm was to the association or its members. The section also allows someone being sued to argue that the association was partly at fault, even if the association isn't actively involved in the lawsuit. This applies to cases started after January 1, 1993, and doesn’t change existing liability rules for damages to others.

(a) In an action maintained by an association pursuant to subdivision (b), (c), or (d) of Section 5980, the amount of damages recovered by the association shall be reduced by the amount of damages allocated to the association or its managing agents in direct proportion to their percentage of fault based upon principles of comparative fault. The comparative fault of the association or its managing agents may be raised by way of defense, but shall not be the basis for a cross-action or separate action against the association or its managing agents for contribution or implied indemnity, where the only damage was sustained by the association or its members. It is the intent of the Legislature in enacting this subdivision to require that comparative fault be pleaded as an affirmative defense, rather than a separate cause of action, where the only damage was sustained by the association or its members.

(b) In an action involving damages described in subdivision (b), (c), or (d) of Section 5980, the defendant or cross-defendant may allege and prove the comparative fault of the association or its managing agents as a setoff to the liability of the defendant or cross-defendant even if the association is not a party to the litigation or is no longer a party whether by reason of settlement, dismissal, or otherwise.

(d) Nothing in this section affects a person’s liability under Section 1431, or the liability of the association or its managing agent for an act or omission that causes damages to another.

damages calculation homeowners' association comparative fault affirmative defense lawsuit damages association liability managing agents legal setoff allocation of fault action commencement Section 5980 partial fault defense in litigation legislature intent damages to association members

(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)

Section § 5986

This law explains that a homeowners' association board can start legal proceedings against property developers without needing approval from members, even if their governing documents say otherwise. If any members of the board are associated with the developer, only the independent board members can decide to take legal action. However, if non-developer board members include limitations in governing documents, those are valid. The law also retroactively applies to ongoing claims, unless they've been settled or resolved. It does not extend the time limits to file a lawsuit or affect any existing dispute resolution requirements.

(a) Subject to compliance with Section 6150, which requires the board to provide notice of a meeting with the members to discuss, among other things, problems that may lead to the filing of a civil action, before the board files a civil action against a declarant or other developer, or within 30 days after it files the action, if the association has reason to believe that the applicable statute of limitations will expire, and notwithstanding any provision to the contrary in the governing documents, the board shall have the authority to commence and pursue a claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. If the board includes members appointed by, or affiliated with, the declarant, developer, or builder, the decision and authority to commence and pursue legal proceedings shall be vested solely in the nonaffiliated board members.

(b) The governing documents shall not impose any preconditions or limitations on the board’s authority to commence and pursue any claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. Any limitation or precondition, including, but not limited to, requiring a membership vote as a prerequisite to, or otherwise providing the declarant, developer, or builder with veto authority over, the board’s commencement and pursuit of a claim, civil action, arbitration, prelitigation process, or legal proceeding against the declarant, developer, or builder, or any incidental decision of the board, including, but not limited to, retaining legal counsel or incurring costs or expenses, is unenforceable, null, and void. The failure to comply with those limitations or preconditions, if only, shall not be asserted as a defense to any claim or action described in this section.

(c) Notwithstanding subdivision (a) or (b), any provision in the governing documents imposing limitations or preconditions on the board’s authority to commence and pursue claims shall be valid and enforceable if the provision is adopted solely by the nondeclarant affiliated members of the association and the provision is adopted in accordance with the requirements necessary to amend the governing documents of the association.

(d) This section applies to all governing documents, whether recorded before or after the effective date of this section, and applies retroactively to claims initiated before the effective date of this section, except if those claims have been resolved through an executed settlement, a final arbitration decision, or a final judicial decision on the merits.

(e) Nothing in this section extends any applicable statute of limitation or repose to file or initiate any claim, civil action, arbitration, prelitigation process, or other legal proceeding. Nothing in this section shall affect any other obligations of an association contained in Title 7 (commencing with Section 895) of Part 2 of Division 2, or any other provision in the covenants, conditions, and restrictions of the association related to arbitration or other alternative dispute resolution procedures.

homeowners' association board authority developer lawsuits common interest development nonaffiliated board members governing documents membership vote requirement limitation unenforceability retroactive application statute of limitations legal proceedings prelitigation process arbitration settlement exceptions dispute resolution obligations

(Added by Stats. 2019, Ch. 207, Sec. 2. (SB 326) Effective January 1, 2020.)