November 23, 2008

Venue and Michigan Case Law on Amendment of CC&Rs

2008 November 23
Initial post: 2009 Apr 07. Click History for a list of changes and updates.

__The continuation of this post is an email to MOA Board Director Jay Welter concerning the board's proposal to seek an amendment to the Declaration of Covenants, Conditions and Restrictions ("DMCCR") defining venue for all purposes to be the courts in Otsego County. The reason for considering the amendment is a companion decision of the board to pursue collection of unpaid dues and special assessments in small claims court in Otsego County.

__Two significant questions are involved: (1) the requirements for amending the DMCCR for a new provision; and (2) whether or not third parties can change a resident's right of Michigan law that the venue for lawsuits is the county of the defendant (owner) for personal debt. Consequently, the amendment would affect venue only for owners of restricted property in Michaywé who are residents of another county or state. The effect of the amendment is to transfer the inconvenience of which court from MOA to the individual non-Otsego County resident.

__The analysis indicates that unanimous approval for such an amendment would likely be required to effect a redefinition of venue for litigation against an individual owner. To respect the rights of owners/members, the board should ensure that the proposed action is unquestionably valid under the law and governing documents.

Don Nordeen
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Please be advised that the writer is not an attorney, and this is not legal advice. The information is based on research on information available in the public domain. ------------------------------------------------------------------------------------------------------
  • Key Words:_ Attorney Issues; Governing Documents,; Members' Rights venue; amendment; governing documents; CC and Rs; Covenants Conditions and Restrictions; restrictive covenants
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