CV 060326, Ken Watts et al. v. Oak Shores Community Association

Defendant/Cross-complainant’s Attorneys:  Michael B. Wilk & Glenn T. Rosen

Verdict: Declaratory Relief for Defendant/Cross-complainant

Dept. 9, Hon. Charles S. Crandall

Three homeowners brought an action against Defendant HOA, located in the Lake Nacimiento area, challenging the legality of the CCR’s and the rules and regulations.  The project consisted of 851 lots, containing 660 single family dwellings, 80 of which are occupied year round, with the majority of HOA members being non-resident owners.  Plaintiffs alleged violations relating to the restriction of rental terms, the annual fees for renting units, mandatory garbage collection fees, boat and watercraft fees, building permit fees and property transfer fees.   Plaintiffs claimed the HOA board consisted of year-round residents whose rule-making decisions were against the interests of the majority non-resident owners.   HOA cross-complained for affirmative declaratory relief against Plaintiffs to establish breach of the CCR’s and the reasonableness of the CCR’s and rules and regulations.  After nineteen days of testimony with twenty-nine witnesses, the court decided in favor of the HOA, determining that the CCR’s and  association rules and regulations were not unreasonable or arbitrary, and did not impose burdens on the whole Association for the benefit of  a few resident owners.  The court found the board acted reasonably and in good faith.