Utah: suing a sloppy HOA board can pay for itself
Utah: suing a sloppy HOA board can pay for itself
2026-09-19 · Utah · Courts
A Utah owner sued his own association's board, won nothing in damages, lost the underlying dispute when the membership voted against him — and kept a $21,000 attorney fee award. The Court of Appeals explained why on September 12, 2024.
Behar v. Johnson, 2024 UT App 129, is published, and the fee holding is the part with reach.1 The statutory hook is § 16-6a-612(5)(a) of the Revised Nonprofit Corporation Act, which allows a fee award in a derivative action that confers a substantial benefit on the corporation.
The benefit the court found
It was procedural, and the district court described it in plain terms the appellate court quoted at paragraph 32: the suit “caused the HOA to start crossing their T's and dotting their I's[, w]hereas before, [the HOA] was sloppy, to be generous.”
And at paragraph 33: “a non-monetary benefit, including the promotion and vindication of shareholders' voting rights, can be a substantial benefit in the context of a derivative action.”
Paying the judgment did not forfeit the appeal
The association paid the $21,000 “under protest” and then appealed it, and the court addressed head-on whether that payment waived the appeal. It did not. At paragraph 25, quoting earlier Utah authority, a judgment debtor “does not waive [its] right to appeal” where intent to preserve the right “is made to appear clearly on the record.” A stipulation reserving “defenses or legal theories” was enough to do it.
That is a practical point for any Utah association facing a fee judgment while it decides whether to appeal.
What was mooted, and how
The substantive dispute was about who may remove a trustee. The district court ordered new elections; the membership then voted 86 of 96 — over 75% — to remove the plaintiff and re-elect the incumbents. The court treated the governing-document interpretation and board-composition claims as moot: the members had answered the question themselves.
The sequence is worth noting. An owner can win the procedural point, force the vote, lose the vote, and still have conferred the benefit the fee statute rewards. Our Utah board elections page covers the removal machinery and the default at § 16-6a-808(1)(c) that applies where the bylaws are silent.
Where an association's own fee rules sit
Associations write fee-shifting into their rules, and Utah's ombudsman has upheld it. In Advisory Opinion 2026-13 (Wiser v. Swan Creek Village, March 30, 2026): “The Association's rule requiring a homeowner to pay for legal fees resulting from a violation is valid…Consequently, the Association did not violate the law by adopting the Rules.”2
Fees run in the other direction too, in several places. Section 57-8a-227(5)(c) makes an association that misses a records deadline liable for the requesting owner's reasonable attorney fees and costs. Section 57-8a-702 awards costs and fees to the prevailing party in a solar-access action. Section 57-8a-231(4)(a)(iv) does the same for a water-wise landscaping action. And § 57-8a-306 governs costs and fees in a lien-enforcement action.
The ombudsman's fee lever
Since September 2025 there has been one more. Section 13-79-104(10) provides that where the office issues an advisory opinion, the same issue is later litigated, and the court rules for the same party, the court “may award the substantially prevailing party…reasonable attorney fees and court costs relating to the development of the cause of action from the date the office delivers the advisory opinion to the date of the court's resolution,” plus a civil penalty of up to $5,000 for a knowing and intentional violation.
Our Utah mediation and dispute resolution page sets out how that sits against Utah's arbitration provisions.
What to watch next
Utah's fee architecture now has three layers — the derivative-suit statute Behar construes, the section-specific awards scattered through Title 57, and the advisory-opinion trigger in Title 13. No reported case has yet applied the third.
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