Gordon Rees Scully Mansukhani Partner Bob Bragalone and Senior Counsel Ryan Fellman won a complete summary judgment on behalf of five board members who had been added to an HOA dispute by the defendant homeowners. The GRSM team resolved the matter within just 60 days of taking over the case, bringing an end to a legal battle that had lasted more than four years.
The dispute began when the HOA, as plaintiff, filed suit against the homeowners in Denton County District Court. The HOA alleged that the homeowners had violated the HOA’s Covenants, Conditions, and Restrictions by constructing a non-conforming carport and sought a declaratory judgment to resolve the issue. In response, the homeowners filed a counterclaim and third-party petition, adding the individual HOA board members to the lawsuit. They accused the board members—who were serving in a voluntary capacity—of mishandling the dispute and filed claims against them for intentional infliction of emotional distress, negligence, and gross negligence.
The court granted the dismissal of the intentional infliction of emotional distress claims against the board members, but the negligence claims remained. The homeowners sought millions of dollars in damages, along with over $1.2 million in attorneys’ fees. Once GRSM took over the defense, they moved swiftly to dismiss all remaining claims. After oral arguments, the court ruled in favor of the board members, dismissing them from the case with prejudice.
As a result of this decisive victory, the HOA has retained GRSM to represent it in the remaining counterclaims the homeowners are asserting. GRSM’s strategic intervention not only cleared the board members of any wrongdoing but also streamlined the case, refocusing it solely on the dispute between the HOA and the noncompliant homeowners.
Contact a member of GRSM’s Real Estate Practice Group for assistance with HOA disputes or other real estate-related matters.