Harder Prevails in HOA Dispute

Foley & Mansfield partner Thomas A. Harder won a victory for the defense in a long running dispute between his client, a Minnesota homeowner’s association, and plaintiff, an adjoining retail association. 

The plaintiff was a retail association that shared common property with the homeowner’s association.  Following a series of failed negotiations over construction defect and related financial issues, the plaintiff filed a motion against our client seeking to have a receiver appointed over the homeowner’s association, as well as for declaratory and injunctive relief relating to alleged construction defects at their shared property. 

After argument, the Court ruled from the bench that the plaintiff failed to establish even one of the three required factors for appointing a receiver (insolvency, waste, and insufficient security).  The Court also denied the plaintiff’s motion for declaratory and injunctive relief, holding that there were no exigent circumstances requiring immediate Court intervention, and suggested the parties work together to resolve their differences.  The ruling from the bench was significant for our client as it confirms its right to make decisions concerning the property.

Harder was assisted by attorney Kyle Eidsness, both of the firm’s Minneapolis office.