HF 3384

as introduced - 86th Legislature (2009 - 2010) Posted on 03/04/2010 09:40am

A bill for an act
relating to real estate; enhancing remedies for residents of common interest
communities when the community association or its board of directors violates
state law or the association's own governing documents; amending Minnesota
Statutes 2008, sections 515B.1-114; 515B.4-116.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 515B.1-114, is amended to read:

515B.1-114 REMEDIES TO BE LIBERALLY ADMINISTERED.

(a) The remedies provided by this chapter new text begin , including those provided in section
515B.4-116, paragraph (d), new text end shall be liberally administered to the end that the aggrieved
party is put in as good a position as if the other party had fully performed. However,
consequential, special, or punitive damages may not be awarded except as specifically
provided in this chapter or by other rule of law.

(b) Any right or obligation declared by this chapter is enforceable by judicial
proceeding, unless the provision declaring it provides otherwise.

Sec. 2.

Minnesota Statutes 2008, section 515B.4-116, is amended to read:

515B.4-116 RIGHTS OF ACTION; ATTORNEY'S FEES.

(a) In addition to any other rights to recover damages, attorney's fees, costs or
expenses, whether authorized by this chapter or otherwise, if a declarant or any other
person violates any provision of this chapter, or any provision of the declaration, bylaws,
or rules and regulations any person or class of persons adversely affected by the failure to
comply has a claim for appropriate relief. The association shall have standing to pursue
claims on behalf of the unit owners of two or more units.

(b) The court may award reasonable attorney's fees and costs of litigation to the
prevailing party. Punitive damages may be awarded for a willful failure to comply.

(c) The remedies provided for under this chapter are not exclusive and do not
abrogate any remedies under other statutes or the common law, notwithstanding whether
those remedies are referred to in this chapter.

new text begin (d) In addition to other rights and remedies provided under section 515B.1-114 and
under this section, a unit owner may submit to the board of directors a written objection to
an action taken or not taken by the association or by the board of directors that the unit
owner believes violates this chapter or the articles of incorporation, declaration, or bylaws
of the common interest community. The written objection may state what action or other
response the unit owner requests from the board of directors.
new text end

new text begin The board of directors shall, within 90 days after receiving the objection:
new text end

new text begin (1) take remedial action to bring the common interest community into compliance
and eliminate or compensate for any harm caused by the action taken or not taken; or
new text end

new text begin (2) explain in writing to the unit owner why the board of directors did not do so.
new text end

new text begin If the board of directors takes neither of those actions, or if the unit owner is not
satisfied with the board of directors' response, the unit owner has a cause of action under
this paragraph against the association. The unit owner need not have been adversely
affected by the action or nonaction complained about. If the court determines that the
action taken or not taken by the association or by the board of directors did violate this
chapter or the association's articles of incorporation, declaration, or bylaws, the court may
award the unit owner appropriate injunctive relief and damages for any adverse effect upon
the unit owner, the unit owner's costs and disbursements, and reasonable attorney's fees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2010, and applies to action
taken or not taken by the association on or after that date.
new text end