Gier’s Liquor & Sporting Goods v. Association of Unit Owners of Driftwood Shores Surfside Inn Condominium

Gier’s Liquor & Sporting Goods (Gier’s) (plaintiff) owned a condominium unit at Driftwood Shores Surfside Inn Condominium complex in Oregon. After a restaurant and conference center that were part of the condominium were destroyed by fire, the condominium association (the association) (defendant) levied an assessment to purchase property adjacent to the condominium complex to replace the restaurant and conference center. Gier’s failed to pay the assessment. The association filed a lien against Gier’s condominium unit because of Gier’s failure to pay, and Gier’s sued the association. Gier’s argued that the association violated state law that allowed a condominium association to annex real property only if the condominium association’s declaration complied with state law and the condominium association recorded a supplemental declaration and plat, neither of which was done. Gier’s also argued that the association’s declaration and bylaws did not authorize the purchase without an amendment and vote of 75 percent of the owners, which also did not occur. Finally, Gier’s alleged that any bylaw authority the association had to make purchases was limited to things necessary for its day-to-day operations. The association counterclaimed to foreclose its lien and argued that state law, its declaration, and its bylaws, which should be broadly construed, authorized its actions. The trial court found for the association, and Gier’s appealed.