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Two boards claimed to run a Delaware HOA. Chancery picked one and sent the rest elsewhere

Two boards claimed to run a Delaware HOA. Chancery picked one and sent the rest elsewhere
Delaware · Courts

Two boards claimed to run a Delaware HOA. Chancery picked one and sent the rest elsewhere

When a Delaware homeowners association ends up with two groups each claiming to be the board, the Court of Chancery's answer is not to decide quickly who is right. It is to keep somebody in charge and send the question of legitimacy to the proceeding built for it.

Billings v. Hickory Hollow Homeowners Association, C.A. No. 2025-1265-JRB, decided February 20, 2026 by Magistrate in Chancery Jessie R. Benavides, denied a temporary restraining order and preliminary injunction and entered a status quo order restoring the board as constituted on December 5, 2025 pending final resolution.1

What is alleged to have happened

A member alleged that in June 2024 the board amended and recorded amendments to the community's covenants, conditions and restrictions without notice to the community and without owner approval. The amendments, on the allegations, imposed weekly non-compliance fees and stripped voting rights from members with outstanding architectural-review violations and fines.

In October 2025 a second amendment was recorded, asserting that the first had been properly noticed.

Then, amid the litigation, a member-run “Special Election” purported to remove the sitting board. Both sides claimed to be the lawful board.

Why the injunction failed

The court applied the ordinary Delaware standard: a colourable claim or reasonable probability of success, imminent irreparable harm as a necessary element, and a balance of equities.

The claim was colourable — the court said so. What was missing was imminent irreparable harm. A generalised assertion that members' votes are being ignored does not supply it, and the disputed general election had already been postponed by agreement, so nothing was about to happen that an order needed to stop.

The equities then ran the other way. The incumbents showed the community would be harmed without a functioning board: the management company was resigning.

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The remedy the court chose instead

A status quo order restoring the board as it stood on December 5, 2025 — and, expressly, no ruling on the validity of the special election.

The petitioner had put that question before the court in a separate action under 8 Del. C. § 225, the Delaware provision for determining the validity of a corporate election or the right to hold office. The court left it there.

That is the procedural map, and it is the most useful thing in the decision. In Delaware, a contested association board takeover splits into two proceedings:

The § 225 action answers who is lawfully the board. It is summary in nature and it is the correct vehicle. Most Delaware associations are nonstock corporations, so the Delaware General Corporation Law's machinery is available to them.

The plenary action answers whether the amendments were validly adopted, whether the fees are enforceable, and whether anyone breached a duty. That is slower.

An owner who files only for an injunction is likely to get what happened here: a finding that the claim is colourable, no relief, and the incumbents left in place while the real question waits in another docket.

What the case does not decide, and it matters

The substantive allegation — that a Delaware board amended and recorded CC&Rs without notice or owner approval, and then recorded a second amendment asserting the first was properly noticed — is entirely undecided. So is whether weekly non-compliance fees are reasonable, and whether voting rights may be conditioned on being current with fines.

On that last point, Delaware law is not silent even though this case is. DUCIOA § 81-104 provides that, except as expressly provided in the chapter, its provisions may not be varied by agreement and rights it confers may not be waived. Whether an amendment can strip a member's vote for an unpaid fine is exactly the kind of question that provision exists to answer — and no Delaware decision we found has answered it.

The practical lesson on amendments

Recording an amendment does not make it valid. It makes it recorded. A subsequent amendment asserting that an earlier one was properly noticed does not cure a notice defect either, for the obvious reason that the assertion is not the fact.

For boards, the defensible file for any amendment is: the notice actually sent, the date it was sent, the vote tally with ballots or proxies retained, and the recording. Our Delaware board elections page sets out the meeting and voting requirements that make a vote count.

For owners, the observation from the Ombudsperson's own complaint records is that this is not rare. Its 2024 report lists bylaws that were “improperly amended” and elections problems — including refusal or failure to hold annual elections, and “signature verification with no authority for signature comparison” — among its top recurring categories.

How this differs from a fine dispute

It is worth separating two things that look similar. In the Haslet Park case the Court of Chancery upheld substantial accrued fines because DUCIOA requires only notice and an opportunity to be heard. That concerns the exercise of a fine power the association already had.

Hickory Hollow is about whether the instrument creating the power was validly adopted at all. A fine levied under an invalidly adopted amendment is not saved by a perfect hearing.

What to watch next

Both the merits and the parallel § 225 action remain live. This is the Delaware docket most worth following for anyone dealing with a contested amendment, because the notice-and-approval question is squarely presented and no appellate authority addresses it.

Note also that a status quo order is not a ruling on the merits and creates no precedent about who should govern. It is a holding action, and the court was explicit that it declined to go further.

Related Delaware HOA Topics

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  1. Billings v. Hickory Hollow Homeowners Association, C.A. No. 2025-1265-JRB (Del. Ch. Feb. 20, 2026) (Benavides, Mag.) — TRO/PI denied; status quo order granted
  2. 25 Del. C. ch. 81, subch. I — General Provisions (§ 81-104, provisions may not be varied by agreement)

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