California Appellate Tracker

Desert Pine Villas Homeowners Assn. v. Kabiling (In re Kabiling)

June 21, 2016

A homeowners’ association was properly ordered to pay compensatory damages to the bankrupt for knowingly violating the bankruptcy discharge injunction by suing to quiet title, following non-judicial foreclosure of its lien on the bankrupt’s condo, based in part on pre-bankruptcy unpaid HOA dues.

After non-judicially foreclosing on homeowners association liens for non-payment of homeowners’ association dues, Desert Pine filed a quiet title action against the Kabilings who had filed a Chapter 7 bankruptcy and received a discharge of which the homeowners association had actual notice. Held, the bankruptcy court properly awarded compensatory damages against the homeowners association for contempt of the discharge injunction since its quiet title complaint relied heavily on unpaid pre-bankruptcy dues, debts that were discharged in bankruptcy.

United States Bankruptcy Appellate Panel of the Ninth Circuit (Barash, J.); June 14, 2016; 2016 WL 3355825

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Desert Pine Villas Homeowners Assn. v. Kabiling (In re Kabiling)

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