The Currituck Club POA v. Mancuso Development, Inc. (North Carolina)
Currituck POA took action to claim approximately $122,000 in unpaid assessments owed by Mancuso Development, Inc. Mancuso Development argued that a previously entered agreement with the original owner/declarant excused any obligation it had to pay assessments.
The question raised in this case is whether an owner and member of an association may have their obligation to pay assessments waived by the declarant by contract with the declarant. The facts of the case present a Pandora’s Box of problems. Mancuso Development successfully argued against its obligation to pay assessments on Currituck POA’s property by virtue of arguments never before used in cases by builders attempting to avoid payment to an association. Mancuso argued that its third party relationship with the original declarant erased any claim held by the POA. However, a declarant cannot legally waive a builder’s obligation to pay assessments to an association.
This matter presents issues of importance to community association law in North Carolina and would have a substantive negative impact if affirmed by the North Carolina Court of Appeals. The amicus filing will address the principle that the previous ruling was based on a flawed concept; that side agreement would create uncertainty in community associations; the ruling would allow a developer to extinguish an existing obligation via a bulk transfer; and the ruling demonstrates that the court of appeal is anti-community association.
Brief: CAI's Amicus Brief
Prior Ruling: Superior Court Ruling
Status: Pending
CAI Amicus Brief Author: Jordan Price Wall Gray Jones & Carlton
CAI Amicus Brief Review Committee: David Ramsey, Esq; Stephen Marcus, Esq; Steve Weil, Esq; Mary Howell, Esq; Steven Sugarman, Esq.