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Delaware: HOA governance disputes belong in Chancery, and nowhere else

Delaware · Courts

Delaware: HOA governance disputes belong in Chancery, and nowhere else

Delaware splits its trial courts between law and equity, and for community association disputes that split is not a technicality — it decides whether a case can be heard at all. A Sussex County owner who sued over assessments, an elevator contract, meetings, elections and late fees had the whole case dismissed because he filed it in the wrong court.

Vaughan v. Summerlyn Association of Owners, Inc., C.A. No. CPU6-25-000290, was dismissed by Judge Rae M. Mims of the Court of Common Pleas on October 17, 2025.1

What he complained about

The plaintiff owned a unit in a Sussex condominium governed by the Unit Property Act, its declaration and code of regulations, “and subject to certain provisions of DUCIOA.” His claims were the ordinary catalogue of association grievances: assessments changed from monthly to quarterly; an elevator maintenance contract; meetings not held as the governing documents require; unfair elections; renters voting; and late fees.

Why none of it could be heard

Under 10 Del. C. § 341, only the Court of Chancery hears causes in equity.

The court worked through what the plaintiff was actually asking for and found it equitable throughout. A request to change how an association operates, how it interprets its contracts, how it sets assessments and late fees, how it runs owner meetings, elections and quorum — these ask a court to compel or restrain conduct. They are not monetarily compensable, and the Court of Common Pleas cannot grant them.

The one claim that might have belonged there — breach of contract — was dismissed under the court's Rule 12(b)(6) for failure to plead a contract, a breach, and monetary damages.

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  1. Vaughan v. Summerlyn Association of Owners, Inc., C.A. No. CPU6-25-000290 (Del. Ct. Com. Pl. Oct. 17, 2025) (Mims, J.) — motion to dismiss granted ↩
  2. 10 Del. C. ch. 3 — Court of Chancery (§ 341, jurisdiction over causes in equity) ↩

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