What court would a lien dispute be heard in?

If our association placed a lien on a property and now the property has sold and we will be receiving payment for the lien from the title company. Can the homeowner take the Association to Small Claims court for the lien? It was our understanding that small claims does not have any jurisdiction over lien? Can anyone give us some insight?

Thank you so much!!!!!

Partly because he disputes the reason. Long story, but the jest is this homeowner (who refused to even talk to us) rented the property. The tenant was an employee of the Licensed daycare across the street and was taking in infants because the Licensed daycare did not - we filed a complaint with the licensing agency about the tenant running an unlicensed daycare out of the residence, which is a violation of our CCR's. The homeowner refused to cooperate with us so we hired an attorney and filed a lien. Now that he has sold the property and the lien paid to us at closing he has filed a small claims action which indicates we filed a "fictitious lien, etc..."

I'm assuming the small claims court will just throw it out, anyone have any thoughts on this??

KarenT,

I’m certain you will receive additional advice as I’m just beginning to understand everything about association living. From the information I have obtained over the years. I believe that the lien has been satisfied. Therefore, the lien wouldn’t be “fictitious”,

If a lien was filed and the association received payment at closing why would the filed lien be consider fictitious?

Best of luck.

Chuck W.

By "fictitious" lien, I'm guessing he's alleging that there was no legitimate money owed and that your HOA committed fraud to collect money that you weren't due?

A lien may have been placed and released after payment received at closing. However, it appears he is alleging the claim for the money was fictitious to begin with.

I'm guessing a judge will not just throw it out without the HOA providing some proof that the lien was legitimate. So it will definitely be in your HOA's best interest to gather the appropriate documents and obtain the sufficient level of legal counsel and respond in court to the lawsuit.

However, as Glen said, I would be sure that the attorney seek to recover costs for having to defend yourself against his apparently facetious lawsuit.

Best of luck!

Attorneys usually can't appear in small claims court. They will immediately kick it up to superior court where the attorney can be heard. Your choice: if you want the attorney to handle it, its going to cost more, but that should be recoverable if you win. In small claims, it will be the owner vs. a board member, with a judge that probably knows little about associations. Let an attorney handle it.

Joe

In our state and some others I'm aware of, attorneys aren't allowed in small claim court. You're right, they should check with their state courts. However, it has been my experience that judges in small claims courts often try to settle mattters, more like a mediator, then decide who is right or wrong, and know very little about community association law, often resulting in decisions that severely undercut or go against the CC&R's of an association. It may be a little easier now that there is a larger body of case law that someone can provide to a small claims judge to support their case, but that doesn't mean they'll take the time to read or understand it. Small claims is about moving cases in and out rapidly. I guess because I had some weird experiences in small claims, I'm just a little leery of them.

Joe