Real Property Law

In two actions by lot owner in a common interest community, one to foreclose a lien for unpaid assessments and the other to recover a money judgment for the amount of those assessments, the delinquent lot owner moved for summary judgment. The court granted the motion with respect to the action for a money judgment, concluding that the plaintiff lot owner lacked standing, but denied the motion with respect to the action to foreclose a lien, holding that question of fact precluded the grant of summary judgment.

The parties all own parcels in a common interest community on Lake George. All of the lots are subject to a declaration of covenants enforced by a homeowners' association (HOA), a not-for-profit corporation. The Declaration requires each owner to pay annual assessments to the HOA for maintenance and operation of the community, and provides that those obligations shall constitute a lien on each lot. The delinquent owner has, for 17 years, failed to pay assessments relative to each of its 11 lots, contending that it is entitled to offsets for work performed on the subdivision by its sole shareholder. The HOA has filed several liens against the delinquent shareholder's lots, and has commenced settlement discussions, but has not resolved the issues pertaining to the assessments and has not foreclosed on its liens. In 2017, plaintiff lot owner filed notices of lien against several lots owned by the delinquent owner “in the right of' the HOA, and then brought an action to foreclose on those liens. Plaintiff lot owner brought a second action, also “in the right of” the HOA for a money judgment in the amount of the annual assessments allegedly due on other lots owned by the delinquent owner. The delinquent owner sought summary judgment dismissing the complaint on a number of grounds, including lack of standing.