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Update: POA challenges are dismissed

September 2nd, 2008 · No Comments · Real Estate

Lawsuits that challenged the authority of two Virginia homeowners’ associations have been thrown out of court since the latest edition of the Business Law Bulletin of Virginia went to press.

The winners are property owner groups in both the large-scale gated community of Lake Holiday in Frederick County and the small Dogwood Valley subdivision in Greene County.

In the Lake Holiday case, as reported by Virginia Lawyers Weekly, the judge dismissed the suit that sought to invalidate the Lake Holiday Country Club as a POA under the Virginia Property Owners’ Association Act.

In the Dogwood Valley case, U.S. District Judge Norman K. Moon rejected claims of racketeering and extortion against the Dogwood Valley Citizens’ Association.  Even though the group had no authority to make special assessments, it “simply tried to collect the monies necessary to maintain the roads and common areas as required by the deeds of declaration and the DVCA bylaws.”  Moon’s opinion is here.

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