SMALL-CLAIMS ASSESSMENT COLLECTION

Associations are allowed to simultaneously file a lien on a property for delinquent assessments and sue for a money judgment, but must ultimately select a remedy. If the association sues and obtains a judgment, it must release its assessment lien.

Limitations. In small claims, the association's claim is limited to $5,000. A significant downside to small claims is that a delinquent owner may appeal an adverse judgment but the association may not. In other words, if the court rules against the association, its claim is wiped out. It cannot appeal and it cannot switch to a different means of collection. On the other hand, if the association obtains a judgment against the delinquent owner, he/she can appeal the decision into superior court. In superior court, both parties are allowed to be represented by an attorney. Even if the association prevails a second time, it cannot collect all of its attorneys' fees. It is limited to $150. Code Civ. Proc. §116.780(c)

Collecting the Judgment. If the association receives a money judgment, the board can levy against the owner's bank account, sell personal property (vehicles, boats), garnish the owner's wages, levy any rental income he/she may have, and record a judgment lien against his/her real property.

See small claims menu for more information.

Updated by ADAMS KESSLER 9/19/2008