In re Accetta v. Brooks Towers

Brooks Tower was comprised of 566 residential units, 13 commercial units, and 297 associated garage units. Plaintiff Anthony Accetta and his wife owned a condominium in the Tower. All Brooks Tower unit owners are governed by a Declaration, which allocated condominium fees among the unit owners based on the “value” of each unit. As pertinent here, this value (1) “may or may not be the list price of the Unit as quoted to prospective third-party purchasers” as of the date of the declaration; (2) was determined “in Declarant’s sole and arbitrary discretion”; (3) was to be used for the purpose of computing the unit owners’ percentage interests in Brooks Tower’s common elements; and (4) “shall be final and conclusive.” Accetta claimed his unit was allocated association dues that were over fifty percent higher than the dues allocated to comparable units, and that this misallocation resulted in hundreds of dollars in monthly overcharges. Accordingly, he filed the underlying action against the Brooks Towers Residences Condominium Association, Inc. seeking, among other things, a declaratory judgment invalidating the portion of the Declaration allowing the Declarant to allocate values in its “sole and arbitrary discretion,” rather than by way of a formula that allocates percentage ownership consistently among comparable units. The district court ordered plaintiff to join the approximately 500 individual unit owners in Brooks Tower as indispensable parties to his suit, rather than proceeding solely against the Association. The Colorado Supreme Court determined the Association could adequately represent the interests of the absent unit owners for the purposes of Accetta's declaratory judgment claim in this case, and according, he needed not to join those owners as parties. The Court reversed the district court and remanded for further proceedings. View "In re Accetta v. Brooks Towers" on Justia Law