Your Cmty. Bank, Inc. v. Woodlawn Springs Homeowners Ass’n, Inc.

In 1994, C. Barr and Joann Schuler subdivided their property, thereby creating the Woodlawn Springs Subdivision. Each phase of development was subject to a Declaration of Covenants, Conditions, and Restrictions (Declarations). The Schulers also incorporated the Woodlawn Springs Homeowners Association, Inc. (Association). The Schulers borrowed money from Your Community Bank, Inc. (Bank) to finance the construction. After the Schulers died, First Bankers Trust Company (First Trust) executed a deed in lieu of foreclosure conveying fifty subdivision lots to the Bank and a written Assignment and Assumption of Developer Rights (Assignment) in favor of the Bank. In 2011, the Association demanded that the Bank pay $15,000 in Association fees on the subdivision lots it acquired. The Bank refused to pay the fees and filed a declaration of rights action. The circuit court granted summary judgment for the Bank. The court of appeals reversed. The Supreme Court reversed, holding that, pursuant to the deed in lieu of foreclosure and the Assignment, the Bank had succeeded to all of the Developer’s rights under the Declarations, and therefore, was exempt from paying the Association fees. View "Your Cmty. Bank, Inc. v. Woodlawn Springs Homeowners Ass’n, Inc." on Justia Law