HOA wins right to sue developer

Law of the Land

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Pinnacle Market Development and sister entities (referred to here as "Pinnacle") built and sold units in a San Diego, Calif., condominium development called the Pinnacle Museum Tower Condominiums. Pinnacle drafted and recorded a set of covenants, conditions and restrictions (CC&Rs) creating a homeowners association, the Pinnacle Museum Tower Association, to manage and maintain the development.

Pinnacle conveyed the development’s common areas and facilities to the association, and deeded a fractional ownership interest in the HOA to each unit’s owner at the time they purchased their unit; owners were required to remain members of the HOA and to pay HOA dues and assessments.

A dispute developed between Pinnacle and the HOA, which argued that Pinnacle was responsible for damages to the development’s common areas, common property and some property of individual unit owners/HOA members.