Walworth State Bank v. Abbey Springs Condominium Association (Wisconsin)
This brief request addresses the case of a lender, who owned a unit as a result of a foreclosure, filed suit to recover $13,000 that it was required to pay in order for its purchaser to use recreational equipment that was owned or controlled by the Association. The recreational equipment was not common element and prior to the bank even lending on the unit years earlier, the association had adopted a policy that the assessments had to be paid to use the recreational equipment. The association utilizes the policy to manage the use of its assets and facilities, which are oversubscribed. In this case, the bank argues that this policy runs afoul by resurrecting assessments previously wiped out or eliminated through foreclosure and that denial of the use of recreational facilities to a new unit owner affects the quality of the unit’s title or marketability.
This case requires the Court to interpret certain provisions of Chapter 703 of the Wisconsin Statutes. Condominium associations may acquire and hold real property, and the board of directors for an association has the right to make policies for the association, including the requirements for the use of association-owned assets. Like Abbey Springs, many other condominium associations throughout Wisconsin and the United States have recreational facilities and other assets owned by the association, which facilities and assets are not common elements and which the boards of those associations must have the authority to control.
Brief
Prior Ruling: Lower Court Decision
Status: Pending
CAI Amicus Brief Author: Daniel Miske, Esquire
CAI Amicus Brief Review Committee: Robert Diamond, Esq; Richard Ekimoto, Esq; Stephen Marcus, Esq; Lara Anderson, Esq; Gary Kessler, Esq; Marc Markel, Esq.