Legal Question in Civil Litigation in Illinois
Financial Obligation in a Homeowners Association
Where I live I belong to a homeowners assoc. Another homeowners assoc adjacent to ours is demanding we pay for their legal fees, and interest on a loan they had to take out to pay for their road repairs. Earlier this year members of our assoc. met with theirs to try to establish an agreement. At the time we agreed to pay for 50% of their road repair cost as set forth in our covenant. Over the last ten years+ of the two exisitng assoc. the other assoc failed to collect dues from homeowners to pay for their road maintenance. They took out a loan to pay their share and are now paying interest on it, which they we are responsible for along with their attorney fees. They are threatening a lawsuit against all homeowners in our association. What can we do to stop this??
2 Answers from Attorneys
Re: Financial Obligation in a Homeowners Association
If what you say is accurate, and the other association is not willing to listen to reason, there is nothing you can do to prevent them from suing you or whomever else.
What you have however, is a good affirmative defense which you will then have to use in order to get the complaint dismissed. If the lawsuit is frivolous, you may also be entitled to recover attorney fees in the process.
The home owner association must hire an attorney to do all this.
I hope this helps,
Taradji Law Offices
Re: Financial Obligation in a Homeowners Association
If you feel that their threat is legitimate and that they will file suit, you may have grounds to file for a declaratory judgment to determine your obligation, if any. Chances are that will be less expensive then a lawsuit wherein they are seeking damages, etc. In a declaratory judgment a court will interpret the covenant, other agreements and whether they apply. The litigations is usually much shorter, less time consuming and less expensive then defending a complaint for damages.
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