By: Derek Hawkins//May 4, 2016//
WI Supreme Court
Case Name: Walworth State Bank v. Abbey Springs Condominium Association, Inc. et al
Case No.: 2015AP940
Focus: Property Lien – Condominium Law
The membership and guest policy revived a lien against the property that former unit owners had extinguished.
“Although Abbey Springs concedes that Walworth State Bank had no legal obligation to pay the former owners’ unpaid assessments following foreclosure, the policy dictates that any unpaid assessments stay with the unit and transfer to the new owners rather than travel with the former unit’s owner who actually incurred the debt. The policy does so by preventing a new purchaser of any unit, whose only connection to the unpaid assessments is through the unit itself, from accessing the recreational facilities if the prior owner failed to pay his or her assessments. As a result, the policy effectively allows Abbey Springs to assert a right against the property for the prior owner’s unpaid assessments in violation of well-established foreclosure law. Furthermore, the policy violates the Foreclosure Judgment that eliminated “all right, title, interest, lien or equity of redemption” of Abbey Springs in and to the foreclosed units. Because we conclude that the condominium policy violates well-established foreclosure law and the Foreclosure Judgment entered in the underlying foreclosure action, we do not address Walworth State Bank’s argument that the policy renders the unit’s title unmarketable.
Affirmed
ABRAHAMSON, J. dissents, joined by BRADLEY, A. W., J.