A Clayton County judge has sided with a homeowner’s association in its dispute with a couple who say they were blindsided by thousands of dollars in fines when they tried to sell their home.
Clayton Magistrate Court Judge John Parker has dismissed a lawsuit filed by Richard and Tae Haupt against Rivercrest Homeowners Association, which put a $5,665 lien against their property in late 2023.
Parker said because the Haupts settled the fee prior to closing on the home, the voluntary payment doctrine applies and rules out recovery of the lien. The voluntary payment doctrine mandates that to recover a payment, it has to have been made involuntarily because some facts were not known at the time of the transaction or a valid reason existed for failure to determine the truth, the court said.
“The court finds that the plaintiffs knew of the material facts at the time of closing and payment to the defendant, and that the voluntary payment doctrine therefore bars reimbursement,” Parker wrote.
The dispute comes as homeowner associations have come under increasing scrutiny over the past year from Georgia legislators considering reforms for the organizations. In hearings on the matter last year, homeowners called some associations’ actions predatory and spoke of an avalanche of fees that led to bankruptcy.
The Haupts argued in a hearing before Parker last month that Rivercrest sent notices of violations at the home, which they operated as rental property, to an incorrect address. They paid the fine to avoid losing the buyer.
“We had the proverbial ticking time bomb or the proverbial gun to the head,” he said.
The violations, which date back to 2016, included the need to repair a dented garage door, the repainting of a mailbox and the removal of mold on the home’s north side. The Haupts said each of the issues had been addressed prior to the home’s sale in September 2023.
But Rivercrest Homeowners Association President Neil Robinson said the notices were sent to the house where the violation occurred and it is the homeowner’s responsibility to collect that mail.
“It is their responsibility to pick up said mail at that address,” he told the court during the hearing.
Robinson could not be immediately reached for a reaction to the judge’s ruling.
In an email, Rick Haupt said he was disappointed in the outcome of his case, but said he supports discussions about changing how homeowner’s associations operate.
“We’re grateful to the state legislators and HOA industry leaders who’ve listened to us thus far to help prevent future abuses in Georgia, whether that be through improved legislation, industry standards or training and compliance,” he said.
About the Author
