Charter Club on the River Home Owners Association v. Walker

Randall M. Lipshutz

Practice Area:Real Estate

Outcome:Court invalidated HOA leasing restriction

Description:Walker owned property which she leased for residential purposes as permitted in the association covenants. The association amended the covenants by 2/3rds vote of the members but without consent of Walker to eliminate leasing in the association. Walker was told to stop leasing by the association. She sued to have the leasing restriction invalidated as to her property. The trial court and the Georgia Court of Appeals ruled that the leasing amendment to the covenants imposed a greater restriction on Walker's use of her property, and such an additional restriction was improper unless Walker agreed to the restriction. The restriction remained valid for those that consented to it, but not as to Walker who did not agree to give up her right to lease her property. A petition is still pending to the Georgia Supreme Court (as of 3/23/10) to review the case, but the court could choose to let the Court of Appeals decision stand without further review. If the Court of Appeals decision remains, there remains open for trial the issue of damages suffered by Walker for interference with leasing rights by the Association. The case number at the Georgia Court of Appeals is A09A2108.