In Oak Valley Estates Homeowners Assn v Livingstone, an unpublished Michigan Court of Appeals opinion, the co-owner made alterations to her condominium unit by installing solar panels, a wind turbine, and a generator without obtaining written permission from the association as required by the condominium bylaws. The association began fining the owner for the violations on a daily basis and eventually filed suit seeking an injunction for removal of the unauthorized installations. The appeal in this case concerned only the fines and attorney fees due from the co-owner.
The court applied the “lode-star” method of determining attorney fees. The court first determines a reasonable hourly rate for the attorney based upon surveys or other reliable evidence. The court then determines the amount of time that was reasonably expended in the case. The multiplication of the rate times the hours expended determines the base fee due, which can then be adjusted up or down for certain enumerated factors. This is the first case applying the lode star method to the determination of attorney fees in a condominium case.
The court also upheld the assessment of $12,875 in fines against the co-owner for the unauthorized installations. The court did not have to rule on the issue, but the court appeared ready to uphold daily fines for the violations, as the court upheld the levying of a fine for each day that the association received a complaint regarding the installations.