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Tyra Summit Condominiums II Association, Inc. v. Clancy

Court of Appeals of Colorado, First Division

May 18, 2017

Tyra Summit Condominiums II Association, Inc., a Colorado nonprofit corporation, Petitioner-Appellee,
v.
Katherine Jean Clancy and Heather Clancy, Appellants.

         Summit County District Court No. 16CV30071 Honorable Edward J. Casias, Judge

          Winzenburg, Leff, Purvis & Payne, LLP, Wendy E. Weigler, Littleton, Colorado, for Petitioner-Appellee

          The Klug Law Firm, LLC, Noah Klug, Breckenridge, Colorado, for Appellants

          Taubman and Navarro, JJ., concur.

          GRAHAM JUDGE.

         ¶ 1 This case requires us to address certain provisions of the Colorado Common Interest Ownership Act (the Act), sections 38-33.3-101 to -402, C.R.S. 2016. The Act sets forth a "uniform framework for the creation and operation of common interest communities, " such as condominiums and cooperatives. § 38-33.3-102(1)(a), C.R.S. 2016. Among other things, the Act creates a judicial procedure for amending a declaration - the recorded instrument that creates a common interest community and sets forth the owners' rights. §§ 38-33.3-103(1), -205, -217(7), C.R.S. 2016.

         ¶ 2 Two condominium owners argue that the district court should not have granted a petition by their condominium association to amend its declaration because the association failed to satisfy all of the statutory requirements. We agree with the condominium owners that the association failed to comply with all statutory requirements because it did not give owners sufficient notice of an association meeting, and we therefore reverse.

         I. Background

         ¶ 3 Katherine Jean Clancy and Heather Clancy (the Owners) own a condominium unit at the Tyra Summit Condominiums II in

          Breckenridge, Colorado (Tyra II). Tyra II is administered by the Tyra Summit Condominiums II Association, Inc. (the Association). Each person or entity who owns a condominium unit at Tyra II is a member of the Association, and the Association is run by a Board of Managers (the Board).

         ¶ 4 The Association was established by a declaration recorded in1983 and is governed by that declaration and various amendments recorded thereafter (collectively, the Declaration).[1] In 2016, the Association sought judicial approval of its attempt to amend the Declaration (the Amendment), which effectively rewrote the 1983 Declaration "[b]ecause the original document [was] so outdated, the Board felt it was necessary to start over from the beginning."

         ¶ 5 The Owners objected to the Amendment, arguing that the Association failed to meet several statutory requirements and that the Amendment improperly changed their allocated interests. After a hearing, at which the parties offered documentary evidence and oral argument, but no testimony, the district court found that the Association had met all the statutory requirements and approved the Amendment in an oral ruling; the court later signed a brief written order to the same effect.

         ¶ 6 The Owners appeal the order, arguing that (1) the judicial amendment procedure is unconstitutional both on its face and as applied; (2) the Association failed to meet several statutory requirements; and (3) the Amendment improperly changes their allocated interests. We do not address the Owners' first argument because it is not preserved, but we agree with the Owners that the Association failed to meet all statutory requirements because it failed to give proper notice of the association meeting at which the Amendment was discussed. ...


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