The Orange County Appellate Division concludes in Huntington Continental v. JM Trust that the Davis-Stirling Common Interest Development Act compels a homeowner’s association to accept and apply partial payments that reduce delinquent assessments owed, but not any other amounts due such as late fees, interest, attorney fees, and costs. This is true even if an action has been commenced to foreclose the lien since there is nothing in the Act precluding the acceptance of partial payments of delinquent assessments once litigation has commenced. Continue reading
The California Supreme Court in Pinnacle Museum Tower Assn. v. Pinnacle Market Development reverses the Court of Appeal and holds that a clause in the recorded CC&Rs of a common interest development providing that the HOA and the individual owners agree to resolve any construction dispute with the developer through binding arbitration in accordance with the Federal Arbitration Act is binding on the HOA and is not unconscionable.