Homeowners can find themselves entangled in disputes with their homeowners’ associations (HOAs). North Carolina law provides some relief to homeowners by allowing them to recover attorney fees in certain circumstances. If you are a homeowner considering taking your HOA dispute to court, when can you recover attorney fees in a lawsuit?
Being the prevailing party
To recover attorney fees, you must be the prevailing party in the lawsuit. You must have won the lawsuit, or your HOA has dismissed it.
However, the ability to recover attorney fees can depend on the specific circumstances of the case. Not all lawsuits of prevailing parties will automatically result in the awarding of attorney fees.
Violations of the law
The court may award attorney fees if the HOA violated the law. According to the North Carolina Planned Community Act, homeowners have certain rights and protections that HOAs must follow.
For example, you could win a lawsuit if your HOA has committed a breach of contract by not enforcing rules. You could also win a lawsuit if your HOA does not follow procedures for fining or penalizing you.
Declaratory judgment actions
A declaratory judgment action allows you to seek the court’s interpretation of a contract or statute. If you win a declaratory judgment action against your HOA, you may be able to recover attorney fees as well as clarify your rights and duties under the contract.
Exceptions to attorney fee awards
Meanwhile, the court may or may not award attorney fees if you settle a lawsuit with your HOA, depending on the circumstances. Additionally, the court may reduce or deny attorney fees if your actions were a significant factor in causing the dispute.
Making informed decisions about your HOA case
Your HOA lawsuit can be a challenging process. With legal counsel, you may know your rights and receive guidance for determining whether you can recover attorney fees. In addition, a legal advocate may help you navigate other complex issues so you can make informed decisions about your case.