Bankruptcy Court further limits association's superpriority lien (1)
In a further setback to attempts of condominium associations to
recover their costs in enforcing their liens, a bankruptcy court
judge has ruled that the association's priority over the first
mortgage for attorney's fees and costs is limited to those incurred
in the court action to enforce the lien. The court read the statute
strictly to hold that the association's priority "does not extend
to fees incurred later to enforce the lien or to enforce, defend,
or further establish its priority." The case is RBS Citizens, N. A.
v. Longyear at Fisher Hill Condominium Trust. It can be found on
the court's website (http://www.mab.uscourts.gov/mab/).
Look under the opinions for Chief Judge Bailey.