Attorney’s Fee Recovery Against a Condominium Association
In Texas, the ability to recover attorney’s fees when suing a Condominium Association (COA) depends on the specific circumstances of the case and the statutory provisions under which the lawsuit is filed. Texas law provides various avenues for the recovery of attorney’s fees, but these often hinge on the nature of the legal dispute, the contractual agreements between parties, and specific legislative provisions that may allow for the recovery of such fees. Here are some general considerations and steps to follow when seeking attorney’s fees in a lawsuit against a COA:
- Review Governing Documents and Contracts
Start by reviewing the COA’s Declaration, Bylaws, and any applicable contracts or agreements. These documents may contain provisions related to dispute resolution and the recovery of attorney’s fees. Some agreements specifically stipulate that the prevailing party in a dispute is entitled to recover reasonable attorney’s fees from the other party.
- Consult Texas Statutes
The Texas Property Code pursuant to Texas Uniformed Condominium Act Section 82.161 allows for attorney’s fees to be recovered to a prevailing party. More specifically it states that the prevailing party in an action to enforce the declaration, bylaws, or rules is entitled to reasonable attorney’s fees and costs of litigation from the non prevailing party. Additionally, Texas Property Code Section 5.006 allows mandatory attorney’s fees that are reasonable and necessary if a restrictive covenant is breached.
- Consider the Nature of Your Claim
The ability to recover attorney’s fees often depends on the type of claim being filed. For instance, claims involving breach of contract, breach of restrictive covenants, declaratory actions allow for attorney’s fees. These are statutory and contractual in nature, thus lend to attorney fee recovery. Claims such as negligence, fiduciary duty breach, or fraud claims are tortious and lead only to actual damages and punitive or exemplary damages but not attorney’s fees.
- Seek Legal Advice
Because laws and legal procedures can be complex and vary widely based on the specifics of each case, it’s crucial to seek advice from a legal professional experienced in Texas condominium law and litigation. An attorney can provide guidance tailored to your situation and help maximize your chances of recovering attorney’s fees.
Remember, each legal situation is unique, and the success of recovering attorney’s fees will depend on the specific facts of your case, the applicable law, and the discretion of the court.
Julian Nacol
Nacol Law Firm P.C.
Dallas Texas Condominium Association Lawyer
(972) 690-3333
Redeeming a Property Within a Condominium Owner’s Association
Homeowners often begin to panic when they discover their Condominium Owner’s Association has either filed to foreclose or has already foreclosed on their property. Often, this happens (sometimes improperly) without the homeowner realizing or having knowledge the COA was about to foreclose. The question then becomes, what happens if the property is foreclosed on and sold? The answer to this question is governed by Texas Property Code Sec. 82.113.
After the property has been foreclosed on and sold, the redeeming lot owner has 90 days from the date of the property to redeem the unit. If the COA is the purchaser, the owner must pay the association the following:
- all amounts due the association at the time of the foreclosure sale,
- interest from the date of foreclosure sale to the date of redemption at the rate provided by the declaration for delinquent assessments,
- reasonable attorney’s fees and costs incurred by the association in foreclosing the lien,
- any assessment levied against the unit by the association after the foreclosure sale, and
- any reasonable cost incurred by the association as owner of the unit, including costs of maintenance and leasing.
If a party other than the association is the purchaser, the redeeming lot owner must pay the purchaser the following:
- an amount equal to the amount bid at the sale;
- interest on the bid amount computed from the date of the foreclosure sale to the date of redemption at the rate of six percent;
- any assessment paid by the purchaser after the date of foreclosure; and
- any reasonable costs incurred by the purchaser as the owner of the unit, including costs of maintenance and leasing.
The owner redeeming the property may also be required to pay the association any outstanding assessments as well as attorney’s fees and costs incurred by the association in foreclosing the lien.
Redemption can be a complex process. This article is in no way intended to encompass the entirety of the redemption process for properties within Condominium Owners Associations, rather, our intent is to lay out the basic timeline and requirements for post-foreclosure redemption. We highly recommend contacting us to help you through the process. Refer to Texas Property Code Sec. 82 for the relevant statutes.
COA Attorneys Dallas TX – Nacol Law Firm PC
Disclaimer: The information provided in this article is in no way intended to constitute legal advice. The information provided is merely an overview of the relevant law. Do not act on this information. Always consult an attorney for legal advice.
NACOL LAW FIRM P.C.
8144 Walnut Hill Lane
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Dallas, Texas 75231
972-690-3333
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Attorney Mark A. Nacol is board certified in Civil Trial Law by the Texas Board of Legal Specialization