Reference no: EM133313296

Assignment:

Discussion: Read the case below and answer the two questions which follow. Remember to research HOA authority on google.

Mitigation of Damages:

Liquidated Damages versus Penalties. Every homeowner in the Putnam County, Indiana, subdivision of Stardust Hills must be a member of the Stardust Hills Owners Association, Inc., and must pay annual dues of $200 for the maintenance of common areas and other community services. Under the Association's rules, dues paid more than ten days late "shall bear a delinquent fee at a rate of $2.00 per day." Phyllis Gaddis owned a Stardust Hills lot on which she failed to pay the dues. Late fees began to accrue. Nearly two months later, the Association filed a suit in an Indiana state court to collect the unpaid dues and the late fees. Gaddis argued in response that the delinquent fee was an unenforceable penalty. [Gaddis v. Stardust Hills Owners Association, Inc., 804 N.E.2d 231 (Ind.App. 2004)]

If you were a judge trying to decide who is right in this case, what questions would you ask each party? Write at least one question you would ask Stardust and at least one question you would have for Phyllis Gaddis. Note: this question is less about the details of the HOA case and more about assessing your ability to examine a situation and come up with questions that would help you make a legal decision.

Should the Association's rule regarding the assessment of the fee be enforced? Explain.