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Anderson v. Lake Arrowhead Civic Association (opens in new window)

This was the first case regarding the Virginia Property Owners' Association Act (VPOAA) of 1989 to make it to the Supreme Court (1997). The Supreme Court of Virginia (SCOV) established basic ground rules for determining whether an association met the conditions for  applicability under the Act. The SCOV stated that "... it is clear that in order to qualify under the POAA, an association must possess both the power to collect a fixed assessment or to make variable assessments and a corresponding duty to maintain the common area." SCOV ruled that the Lake Arrowhead Civic Association (LACA) did not qualify under the VPOAA, and held that "...LACA cannot enforce an assessment, in excess of that provided for in covenant 13, under the common law of easements." It did not state that LACA could collect or seek liens under any other provision of the law, including VPOAA.

Dogwood Valley Citizens Association, Inc. v. Winkelman (opens in new window)

This case specifically addresses a case where a non-judicial lien was recorded without authority of law. Dogwood Valley Citizens Association (DVCA) had recorded Memoranda of Lien against two vacant lots that Winkelman owned, which were not the lots upon which assessments were in arrears. DVCA sold the two lots at a nonjudicial sale.  Winkelman claimed that DCVA was not an association within the intendment of the VPOAA, and that DVCA had no authority to record extrajudicial liens. Alternatively, Winkelman argued, if DVCA were determined by the court to qualify under the VPOAA, then DVCA had no authority to record liens on any property other than the property that was subject to the lien. The trial court held that DVCA did qualify under the VPOAA, but ruled that VPOAA barred any action against property not specified in the lien. The deed of sale of the two lots were voided by the trial court. At appeal, the SCOV reversed the trial court and held that DVCA did not qualify under the VPOAA, and then upheld the portion of the trial court decision that voided the liens. (Courts can uphold a ruling if it was decided for the wrong reason but was still the correct decision when considering a different reason).

Dogwood Valley Citizens Association, Inc. v. Shifflett (opens in new window)

DVCA wasn't very happy with the SCOV ruling, so it went back to work attempting a way around it. It modified its bylaws and article of incorporation to require DVCA to maintain the common areas, and then filed those documents in the land records of the county. It then, interestingly enough, filed warrants-in-debt against certain property owners who refused to pay a special assessment, which would be allowed under the VPOAA. The District court denied the claims, and DVCA appealed to the Circuit court, which ruled that the articles of incorporation and bylaws did not qualify DVCA under the VPOAA. On appeal to SCOV, the court said, "Articles of incorporation and bylaws are not instruments that apply to real property..."