Homeowner Associations: HOA Not Entitled To Fees Where Gist Of Successor Homeowner’s Suit Was Fraud Based

Denial Of HOA’s Fee Request Affirmed On Appeal.

            In Mims v. Park Hill on Pepper Avenue Community Association, Case No. E065990 (4^th Dist., Div. 2 Sept. 13, 2017) (unpublished), successor homeowner initially sued HOA on various fraud-based claims based on the failure to provide her notice that the property was within the HOA and subject to HOA fees, mainly under the Truth in Lending Act and other laws.  Importantly, plaintiff never cited the HOA’s CC&Rs in her pleadings and dismissed HOA after it filed an answer.  The lower court denied HOA’s request for fees under Civil Code section 5975(c) as a purported prevailing party.  The 4/2 DCA affirmed, agreeing with the trial judge that the lawsuit was not about enforcing CC&Rs but actually seeking an exemption from the governing HOA documents due to alleged violations of disclosure laws as well as misrepresentation.