Homeowner Associations: 50% Pro-Rata Fee Award To HOA By Arbitrator Affirmed On Appeal

$17,093.50 Reduced Award Upheld, With HOA Able To Seek Pro Rata Fees For Winning On Appeal.

            In Fairly-Haze v. Whitesails Community Assn., Case No. B311574 (2d Dist., Div. 6 May 4, 2023) (unpublished), HOA primarily won an arbitration proceeding which involved assignment of a handicapped car space in return for a surrender of another space by homeowners.  The arbitrator also awarded HOA $17,093.50 in fees (50% of the requested amount) under the mandatory fee-shifting provision contained in the Davis-Stirling Act.

            The 2/6 DCA affirmed the fee award after upholding the merits ruling in favor of HOA.  Homeowners, themselves, clarified later in the proceeding that CC&Rs were involved, which triggered Davis-Stirling fee exposure.  The reduced amount of the fee award was not erroneous, with the appellate court determining HOA could seek a pro-rata shares of its attorney’s fees for winning the appeal.