Pasco Common Condominium Assn., Inc. v. Benson

Syllabus

The plaintiffs, an association of unit owners in a common interest community that had been created pursuant to the Common Interest Ownership Act (§ 47-200 et seq.) and eighteen individual members of that association, brought this action alleging that the defendant B Co., the declarant, and the defendant B, the president and chief operating officer of B Co., violated the provisions of a condominium declaration recorded by B Co. by, inter alia, assessing common charges against unit owners on the basis of a formula that deviated from the terms of the declaration. The condominium complex was comprised of residential and commer- cial units, one of which was occupied by a restaurant. Since the inception of the condominium complex, B was in complete control of B Co. as its president and chief operating officer, and he owned almost all of its stock. Because B owned a majority of the units in the complex, he was also in complete control of the association. B, however, did not act in conformity with the declaration in several instances, including when he did not follow the formula defined in the declaration for assessing common charges to the unit owners, he made an agreement with the restaurant exempting it from paying common charges, and he expended association funds to finance repairs to units, for management fees, and for vehicle and paving expenses. In 2009, pursuant to the terms of the declaration, control of the association transitioned from an executive board consisting of B and two members of his family to three directors: B and two unit owners. B, however, continued to direct that common charges be assessed pursuant to his methodology, and B Co. continued to amend the declaration and exercise development rights through 2013, when the plaintiffs filed the present action. In their answer and special defenses, B and B Co. alleged that all of the plaintiffs' claims were barred by the three year statute of limitations applicable to tort actions (§ 52-577) and the six yea