A recent Court of Appeals decision found that an Association was not permitted to bring a foreclosure action against a co-owner solely on the basis of unpaid fines. See Channel View E Condo Ass'n v. Ferguson, Unpublished Court of Appeals Decision No. 351888 (Decided February 25, 2021).
In the Channel View Case, the Association conveyed a property to the Defendant upon which the Defendant planned to build a home. The Association's Bylaws required that all construction be completed within 12 months. When the Defendant failed to complete the construction project within 12 months, the Association began assessing fines. Eventually, the Association recorded a lien against the property and initiated judicial foreclosure proceedings. The amount owed by the Defendant consisted solely of the unpaid fines. The Court noted that “the fines levied against [the defendant] may not be treated as assessments and therefore plaintiff did not have authority under its bylaws to file a lien" and pursue foreclosure. Therefore, the Michigan Condominium Act (MCL 559.208) did not authorize foreclosure in this case.
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