§514A-94 - Attorneys' fees, delinquent assessments, and expenses of enforcement.
§514A-94
Attorneys' fees, delinquent assessments, and expenses of enforcement. (a) All costs and expenses, including
reasonable attorneys' fees, incurred by or on behalf of the association for:
(1) Collecting
any delinquent assessments against any owner's apartment;
(2) Foreclosing
any lien thereon; or
(3) Enforcing any
provision of the declaration, bylaws, house rules, and the Condominium Property
Act; or the rules of the real estate commission;
against an owner, occupant, tenant, employee of an
owner, or any other person who may in any manner use the property shall be
promptly paid on demand to the association by such person or persons; provided
that if the claims upon which the association takes any action are not
substantiated, all costs and expenses, including reasonable attorneys' fees,
incurred by any such person or persons as a result of the action of the
association, shall be promptly paid on demand to such person or persons by the
association.
(b) If any
claim by an owner is substantiated in any action against an association, any of
its officers or directors, or its board of directors to enforce any provision
of the declaration, bylaws, house rules, or this chapter, then all reasonable
and necessary expenses, costs, and attorneys' fees incurred by an owner shall
be awarded to such owner; provided that no such award shall be made in any
derivative action unless:
(1) The owner
first shall have demanded and allowed reasonable time for the board of
directors to pursue such enforcement; or
(2) The owner
demonstrates to the satisfaction of the court that a demand for enforcement
made to the board of directors would have been fruitless.
If any
claim by an owner is not substantiated in any court action against an
association, any of its officers or directors, or its board of directors to
enforce any provision of the declaration, bylaws, house rules, or this chapter,
then all reasonable and necessary expenses, costs, and attorneys' fees incurred
by an association shall be awarded to the association, unless the action was
filed in small claims court or prior to filing the action in a higher court the
owner has first submitted the claim to mediation, or to arbitration under part
VII of this chapter, and made a good faith effort to resolve the dispute under
any of those procedures.
(c) Anyone
contracted by the association of apartment owners to collect delinquent
assessments against any owner's apartment shall not share in any portion of any
penalties or late charges collected. [L 2007, c 244, pt of §2]