Property Law

Property Law

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Bankruptcy Court further limits association's superpriority lien (1)

by Jean Stevens, posted Wed, Feb 1, 2012 10:20 AM

In a further setback to attempts of condominium associations to recover their costs in enforcing their liens, a bankruptcy court judge has ruled that the association's priority over the first mortgage for attorney's fees and costs is limited to those incurred in the court action to enforce the lien. The court read the statute strictly to hold that the association's priority "does not extend to fees incurred later to enforce the lien or to enforce, defend, or further establish its priority." The case is RBS Citizens, N. A. v. Longyear at Fisher Hill Condominium Trust. It can be found on the court's website ( Look under the opinions for Chief Judge Bailey.


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