Court Says Owners Cannot Withhold Payment of Assessments to Protest Board Actions or Alleged Wrongdoing
Homeowners and condominium associations often find themselves balancing the duty to collect assessments with the responsibility of the association to act fairly and transparently toward members. This case decision offers important insight into how courts view that balance—particularly when owners challenge the legality of board actions while simultaneously owing unpaid assessments. Although the decision was issued under Illinois law, its reasoning highlights common issues that associations across the country can learn from.
The case involved a longstanding dispute between a condominium owner (“Owner”) and her condominium association (“Association”) over unpaid assessments and a special assessment that had been levied years earlier to pay legal expenses from prior litigation.
In defense of an action filed by the Association, Owner denied owing the amounts claimed and filed two counterclaims alleging: (i) the special assessment was illegal because board members who voted for it had conflicts of interest; and (ii) the association violated owners’ rights to inspect records under the Illinois Condominium Property Act.
The trial court struck both counterclaims, held a bench trial, and entered judgment for the association in the amount of $24,434.75, plus possession of Owner’s unit. The possession order was temporary—consistent with condominium law that allows the association to collect rent or rents during the delinquency period. Owner appealed the trial court’s decision, raising numerous procedural and substantive challenges.
The appellate court affirmed the judgment in full. The appellate court held that Owner’s challenges to the legality of the special assessment and record inspection rights were not germane to the core issue in the eviction case—whether assessments were owed. The court based its decision on case precedents that a unit owner’s obligation to pay assessments is not contingent on the association’s performance of its duties. In other words, owners must “pay now, dispute later.” The appellate court emphasized that recordkeeping violations, conflict-of-interest claims, and fiduciary issues cannot be litigated as defenses or counterclaims in a collection or possession case. Instead, those disputes must be filed separately in a different action. The appellate court also found other procedural deficiencies in the manner in which Owner pursued her claims.
Commentary:
This decision reflects the prevailing law that an owner’s payment obligation is absolute, even when the owner alleges mismanagement or improper board conduct. Owners cannot withhold payment of assessments to protest board actions or alleged wrongdoing. Claims of misconduct, fiduciary breaches, or denied record access must be brought in a separate lawsuit, not in an eviction or assessment collection case.
While the decision arose under Illinois law, the court’s reasoning echoes the following principles seen in other states’ condominium and HOA statutes: (i) assessment obligations are statutory, not purely contractual; (ii) boards are entitled to rely on business judgment and procedural regularity; and (iii) Owners’ remedies for board wrongdoing are separate and do not excuse nonpayment.
Illinois Appellate Court decision (October 16, 2025)
See case decision: 832_Oakdale_Condo._Assn_v._McBride