In Channel View East Condominium Association, Inc. v Ferguson, an unpublished Michigan Court of Appeals opinion, Defendants purchased a unit in the site condominium. The condominium documents required construction to be completed within 12 months. Defendant failed to do so and the association began levying fines of $1,000 per month and recorded a lien to secure the fines. When the work was still not completed, the Association filed suit seeking injunctive relief, money damages (137,800 in fines), and foreclosure of its lien. The parties moved for summary disposition on cross motions. The court granted judgment in favor of the Association and the co-owner appealed.
The appeals court ruled that the association had the authority to levy fines against the unit, but that the reasonableness of the fines was a question of fact to be determined by the trier of fact. The court also held that neither the condominium documents nor the MI Condominium Act authorized a lien or its foreclosure solely for unpaid fines. In interpreting MCL 559.208, the court held that the words “together with” in the statute indicate that interest, late charges, advances, attorney fees, and fines are secured by a lien, but only if there is a lien for unpaid assessments. The court remanded the case for a determination of the reasonableness of the fines.
This is the parties second trip to the Michigan Court of Appeals; the result from the first appeal can be found here.