West Oaks Estates HOA / Builder Dispute Settled

Yesterday we successfully resolved the dispute existing by and between 17 families residing in the West Oaks Estates subdivision, and their San Antonio HOA (West Oaks Estates Homeowners Association) and builder (McMillin Homes). R L Wilson, P.C. Law Firm serves as attorneys for the 17 families, who were sued (each in different suits) by McMillin and their homeowners association (the "WOEHOA") in November 2008.

The skirmish involved the failure of the builder/developer to annex Unit 2 of the development into the Restrictive Covenants established for Unit 1 PRIOR TO selling homes to the 17 families. This gaffe resulted in our clients' homes not being subject to mandatory membership in the HOA, and the homeowners not being legally required to pay association dues or abide by the restrictions applicable to those residents who purchased homes after the discrepancy was cured by the builder. We characterized their homes as a "donut hole" in the rules and payment obligations imposed upon the subdivision by the late-filed Restrictions.

When the builder asked the 17 families to voluntarily submit to the restrictions and voluntarily pay HOA dues, they refused, citing what they deemed to be past abuses by the developer-controlled HOA. When various "incentives" offered did not entice them to voluntarily join the HOA, our clients were served with lawsuits filed jointly by McMillin and the WOEHOA. They brought those suits to our firm, and asked us to vigorously defend them and preserve their freedom from what they consider to be an oppressive HOA. As lawyers who regularly litigate claims involving homeowners associations in Texas, we were glad to step up to the plate.

Along with Answering the suits on behalf of the 33 Defendants, we sought and achieved consolidation into a single action, and then advanced various counter-claims against the builder related to promises of community facilities that were never delivered, including a "resident's park." Other counter-claims that were asserted related to fraud in the inducement, conversion of HOA dues paid prior to the time the residents realized they were not required to pay, and fraud in a real estate transaction.

Fortunately, after yesterday's 9 hour marathon mediation session --- in which both sides fought hard but finally succumbed to reason -- the case was settled. In the end, our firm's clients were not required to join the HOA, but did agree to pay a reasonable and reduced "license fee" as their "fair share" of the cost of maintaining the development's gates and roads. This seemed to be a satisfying resolution to all involved, and I was thrilled to receive a late-night "thank you" e-mail from the client representative.

We are proud of the work our law firm did in the case, and of our track record as lawyers in lawsuits involving HOAs in and around San Antonio, Texas. We look forward to the "celebration bar-b-q" our clients invited us to!