The CC&Rs for most homeowners associations ("HOAs") provide that in the event of a dispute which goes to arbitration or a lawsuit, the prevailing party is entitled to cover the fees and expenses charged by its attormeys. Even if the CC&Rs do not include an attorney fees provision, under the Davis-Stirling Act, the prevailign party is entitled to such reimbursement in almost all lawsuits to enforce the CC&Rs, but there are some exceptions.
The amount of the fees and expenses is the actual amount you incur. Courts aren't stupid. If your attorney claims some unreasonable amount, the court is likely to only allow reasonable fees. There was a recent HOA-CC&Rs case where the Court of Appeal reduced the fees granted by the trial court from over $1,000,000.00 to less than but close to $750,000.00.
You and your attorney better be absolutely sure you are right. If you lose, you will end up paying both your own attorney fees and the HOA's, double-or-nothing.
Homeowners almost always lose such lawsuits. The HOA Board of Directors will get advice from professional managers of the project and if the issue is complex or difficult, the manager will consult with an attorney knowledgable in this area of law.
If you lose and don't pay the fees awarded to the HOA, it can foreclose on your home, evict you, and sell your home, to pay the fees, interest, and the expenses of the foreclosure, without going back to court!
On the other hand, if the conduct of the HOA is so bad that DOJ is prosecuting the HOA, then you're probably right. DOJ almost never takes on cases arising from disputes between homeowners and HOAs. Personally, I have never heard of any. I know several former Deputy US Attorneys who have left DOJ, and I have heard from them how difficult and rare it is for a case to get to them. If DOJ has already taken it on, then you have a good case. If you're just hoping they'll take it on, I am afraid that I have to advise you that is not likely.
If you would like to discuss what the HOA has done or failed to do and the chances your case would be successful, please call me.
Dana Sack
510-286-2200
Answered on Apr 12th, 2015 at 6:03 PM