Green v. Lake Montowese Ass'n
Jefferson County · MO · Missouri Court of Appeals, Eastern District
MIXED · other
What happened
Lake Montowese's water system became unreliable over decades. The association pursued a new system and levied a $2,000 special assessment after a majority ballot, intending to transfer the system to Jefferson County. Homeowners (Greens and Beckers) who had been barred from connecting as a condition of purchasing sued. The trial court declared the special assessment inequitable and void as applied to them and awarded them attorney fees. The Eastern District affirmed the assessment judgment but reversed the fee award for lack of an American-Rule exception (Dec. 18, 2012).
What the court (or agency) held
The court of appeals affirmed declaratory judgment that a $2,000 special assessment for a new subdivision water system was inequitable and null and void as applied to homeowners who had been denied access to the old system as a purchase condition. The attorney-fee award to those homeowners was reversed for insufficient evidence of an exception to the American Rule—mixed result.
Why this matters for members
This result is MIXED — a partial win, not a clean sweep on every claim. Special assessments that charge owners who were excluded from the benefit (here, water-system access) can be struck as inequitable even if a majority approved the project. Fee awards still need a recognized exception to the American Rule with record support.
What the member did
Documented denial of the amenity being funded and well costs; sought as-applied equitable declaratory relief rather than only a global "no power to assess" claim.
What did not work
Attorney-fee award under special-circumstances exception—reversed on appeal absent evidence of spiteful or intentionally wrongful association motive.
Questions for the board
- Before levying a special assessment, have we identified which lots receive the benefit and whether any owners were historically excluded?
- What ballot/notice record exists for the assessment, and how were equity objections handled?
- Do our documents authorize special assessments for utility replacements and on what vote threshold?
Questions for a lawyer
- What Missouri standards govern challenging a special assessment as inequitable as applied?
- What fee-shifting theories (if any) remain viable after Green's American-Rule holding?
- Should relief be framed as declaratory judgment limited to particular lots?
Citation
Green v. Lake Montowese Ass'n, 387 S.W.3d 413 (Mo. Ct. App. 2012); No. ED 98091 (2012-12-18). Missouri Court of Appeals, Eastern District. Outcome chip: MIXED. Flags: MIXED. Source: https://hallapproved.com/mo/cases/appeals/2012/5283912/
_General information, not legal advice. Outcomes turn on facts and current law._
General information, not legal advice. Outcomes turn on facts and current law.