Proposed Amendment to the Michigan Condominium Act: House Bill 4919 (2015): Authorizes board of directors to initiate or defend legal actions on behalf of and against co-owners without restriction

On September 29, 2015, representatives Klint Kesto (primary sponsor), Brandt Iden and Hank Vaupel introduced House Bill 4919, which would modify the Condominium Act, MCL 559.101, et. seq. House Bill 4919 would amend MCL 559.160 as follows:

Sec. 60. (1) Actions on behalf of and against co-owners shall be brought in the name of  the association of co-owners.  The association of co-owners may assert, defend, or settle claims on behalf of all co-owners in connection with the condominium project.

(2) The board of directors of an association of co-owners has the power to assert, defend, or settle claims on behalf of all co-owners in connection with the condominium project.

(3) The articles of incorporation for an association of co-owners and the condominium documents shall not restrict the power of the board of directors granted under subsection (2). Any provision in the articles of incorporation or the condominium documents that requires a vote of the co-owners to authorize the board of directors of an association of co-owners to incur legal fees and costs in the exercise of the power granted under subsection (2) or that otherwise seeks to restrict that power is void.

Later that same day, the proposed bill was referred to the Judiciary Committee.  Our law firm will be monitoring House Bill 4919 throughout the legislative process.  If you have any questions regarding this potential new change in the law or any other condominium issues, please contact our office.

Kevin Hirzel is a partner and practices out of the Clinton Township, Traverse City and Livonia office locations. He concentrates his practice on commercial litigation, community association, condominium law, construction law and real estate law. He has extensive litigation and trial experience in a wide variety of real estate and complex commercial litigation matters. Mr. Hirzel represents builders, community associations, condominium associations, cooperatives, co-owners, developers, homeowner associations, investors, property owners, and property managers throughout Michigan. He may be reached at (734) 261-2400 or khirzel@cmda-law.com.