Background
Kun Jiang challenged actions taken by the Haslet Homeowners Association concerning his continuing violation of the community’s governing documents. The Association notified Jiang in writing on February 24, 2023, that fines would begin accruing on March 11, and it later gave him an opportunity to be heard during a June 27 Zoom meeting at which he spoke for 40 minutes.
In a July 24, 2026 memorandum opinion resolving exceptions, the Court deferred deciding whether the fines imposed on Jiang were reasonable and whether attorneys’ fees should be shifted under Section 81-417(a) of the Delaware Uniform Common Interest Ownership Act. After supplementing the record, the Association identified $33,810 in fines as of August 7, 2026, and requested $95,944.57 in attorneys’ fees, costs, and expenses.
The Court’s Holding
The Court held that the $33,810 in fines levied as of August 7, 2026, was reasonable under 25 Del. C. § 81-302(a)(11). Jiang received ample notice and an opportunity to correct the violation but refused to do so. The Court also found the escalating daily rate—$20 per day for the first 30 days and $30 per day thereafter—reasonable in light of Jiang’s continued noncompliance and the costs imposed on the community.
The fine will continue accruing at $30 per day until Jiang remedies the violation, unless the Court orders otherwise. The Court nevertheless denied the Association’s request to shift attorneys’ fees under 25 Del. C. § 81-417(a). Although the Association prevailed on most issues, several of Jiang’s positions had merit, indicating that his arguments were neither frivolous nor brought in bad faith; the Court also concluded that imposing fees on top of the sizeable fine would be unjust.
Key Takeaways
- DUCIOA permits reasonable association fines after the owner receives notice and an opportunity to be heard.
- The Court approved $33,810 in accrued fines and allowed fines to continue at $30 per day until the violation is remedied.
- Fee-shifting under Section 81-417(a) is discretionary, and prevailing on most issues does not automatically entitle an association to recover its attorneys’ fees.
Why It Matters
The decision illustrates that Delaware common-interest communities may enforce substantial, continuing fines when procedural protections are satisfied and an owner refuses to cure an ongoing violation. At the same time, even a largely successful association may be denied litigation expenses when the opposing party raised some meritorious positions and an additional financial award would be inequitable.