Unit Owners Ass'n of Buildamerica-1 v. Gillman
Fairfax County · VA · Supreme Court of Virginia
Member win · fines
What happened
Harry and Saundra Gillman operated a trash-hauling business from industrial condo warehouse units at Buildamerica-1. After years of use, the association levied fines for alleged rule violations (including garbage trucks on common elements), recorded liens, and sued to enforce liens and enjoin truck access. The Gillmans sought declaratory and other relief. The trial court held the bylaw fine provision unlawful/unenforceable, granted the association some injunctive relief and counsel fees. On appeal, the Supreme Court of Virginia addressed the association's fine/lien theory (1982).
What the court (or agency) held
The Virginia Condominium Act authorized assessments for common expenses and lawsuits for damages or injunctive relief; it did not authorize a board to levy fines, penalties, or forfeitures and then lien those amounts. The bylaw fine-collection scheme was unenforceable. (Association still obtained some injunctive relief below; the core member win was invalidation of the fine/lien mechanism.)
Why this matters for members
This result is MIXED — a partial win, not a clean sweep on every claim. Without statutory authority, condo fine-and-lien bylaws exceed the Act. Associations must use authorized remedies (assessments for true common expenses; damages/injunction suits) rather than homemade penalty regimes.
What the member did
Challenged the fine-and-lien scheme as unauthorized under the Condominium Act; appealed the injunction for lack of specific, reasonable standards.
What did not work
Laches and estoppel against the association failed. Reasonable, specific parking/weight rules adopted in the governing documents can still be enforced if they survive a reasonableness review.
Questions for the board
- Do our bylaws authorize fines, and what Virginia statutory authority (if any) currently supports them?
- Are we recording liens for amounts that are penalties rather than lawful assessments?
- For commercial/industrial condo uses, have we enforced rules evenly regarding vehicle access?
Questions for a lawyer
- What does the current Virginia Condominium Act allow regarding fines, and how does Gillman still limit homemade penalty schemes?
- How should we challenge liens that appear to secure fines rather than assessments?
- What injunctive exposure remains even if fines are invalidated?
Citation
Unit Owners Ass'n of Buildamerica-1 v. Gillman, 223 Va. 752, 292 S.E.2d 378 (1982); Record Nos. 800180, 800171 (1982-06-18). Supreme Court of Virginia. Outcome chip: MIXED — fines authority — later VA statutes may allow limited fines w/ notice/hearing. Flags: MIXED, statute-changed. Source: https://law.justia.com/cases/virginia/supreme-court/1982/800180-1.html
_General information, not legal advice. Outcomes turn on facts and current law._
General information, not legal advice. Outcomes turn on facts and current law.