Homeowner Associations: Attorney’s Fees Are Not Fiduciary Duty Breach Tort Damages And $1.328 Million Fee Award Against Individual Directors Under Civil Code Section 5975 Reversed As A Matter Of Law.

Section 5975 Fees Only Awardable Against Nonprevailing HOA.

               In Colyear v. Rolling Hills Community Assn. of Rancho Palos Verdes, Case No. B308382 (2d Dist., Div. 4 Mar. 1, 2024) (partially published; fee discussion not published), plaintiff homeowner won a declaratory relief action based on a dispute over tree-trimming covenants in certain recorded Declarations, with the lower court awarding plaintiff over $1.328 million in attorney’s fees under Civil Code section 5975, the Davis-Stirling Act fee shifting provision involving CC&Rs against both the HOA and individual directors.  The appellate court reversed a breach of fiduciary duty judgment against HOA, determining that attorney’s fees are not damages for purposes of this tort.  With respect to the section 5975 fee award, the 2/4 DCA affirmed the fee award against HOA but reversed the award against individual directors, finding section 5975 did not apply to individual directors after reading sections 5975 and 5980 in tandem.