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December 3, 2012
Court of Appeals Ruling Preserves Eisenhower Client's Ownership Interest in Condo Assessment Lien Foreclosure

Fairway Estates vs. Young, et al and Sand Point Country Club.

In a published decision by Court of Appeals for the State of Washington filed on December 3, 2012, Eisenhower’s client, Sand Point Country Club, located in Seattle, prevailed in defeating an attempt by the Fairway Estates condominium association to eliminate SPCC’s ownership interest in property through a condo assessment lien foreclosure.  In 1973, SPCC leased a portion of its property for construction of an 80-unit condominium complex under an 88 year ground lease.  In 2011, the Fairway Estates condo association filed suit in King County Superior Court to foreclose an assessment lien against a leasehold unit owned by the Youngs, and named SPCC in the lawsuit.  Fairway sought to eliminate SPCC’s fee ownership interest in the unit in the lien foreclosure.  In a decision interpreting provisions of the pre-1990 and post-1990 condominium acts, along with the complex documentation of the ground lease condominium, the court rejected Fairway’s argument and held that the statutory lien on a condominium unit for unpaid assessments attaches solely to the owner’s (Young’s) leasehold interest in that unit.  SPCC was also awarded attorney fees at the trial court level and on appeal.  SPCC was represented by Bob Casey at the trial court and on appeal.


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