- Community Associations, Legal Updates
- Indiana
Kovitz Shifrin Nesbit (KSN) is proud to share a significant appellate victory on behalf of our client, Treyburn Lakes Homeowners Association, Inc. In Treyburn Lakes Homeowners Association, Inc. v. Solomon L. Scott (Indiana Court of Appeals Case No. 25A-CC-646, decided October 31, 2025), the Indiana Appellate Court reversed a trial court decision that had substantially reduced the association’s attorney fee award without holding a hearing.
A Brief Background on the Legal Case
Treyburn Lakes HOA pursued collection efforts against a homeowner who had failed to pay assessments, obtaining multiple judgments that included attorney’s fees. The association then recorded a lien securing those amounts and ultimately filed a foreclosure action.
The Association ultimately pursued a foreclosure of its lien. The Association’s foreclosure was uncontested; However, when entering judgment in the foreclosure case, the trial court excluded the previously awarded attorney fees from the lien foreclosure and significantly reduced the Association’s attorney fee request without conducting an evidentiary hearing.
The Appellate Court’s Ruling
On appeal of the trial court’s ruling, the Indiana Appellate Court agreed that the trial court abused its discretion on both issues. The Court held that:
- The Association’s recorded lien secured the previously awarded attorneys’ fees, and they must be included in the foreclosure judgment.
- The trial court erred by unilaterally reducing the Association’s attorneys’ fee request without conducting an evidentiary hearing.
The appellate opinion makes clear that before a trial court may reduce an association’s attorneys’ fee request, it must hold a hearing to allow the association to present evidence regarding the reasonableness of the fees. The Court reversed the trial court’s ruling and remanded the case for an evidentiary hearing.
Why This Decision Matters
This appellate decision is a significant win not only for the Treyburn Lakes HOA but for community associations across Indiana, particularly in collection and foreclosure cases. The decision reinforces that attorney fee awards secured by an association’s lien must be respected and that trial courts cannot arbitrarily reduce those fees without giving associations an opportunity to be heard. While trial courts are still the arbiter of whether the attorneys’ fees requested are “reasonable,” they must base that decision on the evidence before it. Trial courts cannot simply reduce the attorneys’ fee award supported by evidence without providing an articulable reason for the reduction.
Community associations rely on assessments to fund essential operations, maintenance, and services. When owners fail to pay, the association must take legal action to protect the community’s financial health. The right to recover reasonable attorney fees is a critical part of that process.
This appellate decision reaffirms that associations are entitled to a fair evaluation of their attorney fee requests and that courts must follow due process before reducing them. Moreover, it provides greater clarity, consistency, and leverage when enforcing liens and recovering the full cost of collecting delinquent assessments.
Legal Resource
Do not hesitate to contact our law firm if your association has questions about assessment recovery, collection policies, or other legal concerns.
Please call 855-537-0500 or visit www.ksnlaw.com.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
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