A winning Vermont association lost a quarter of its fees
A winning Vermont association lost a quarter of its fees
2026-09-19 · Vermont · Courts
A Vermont condominium association won its case, asked for $62,485.71 in fees and costs, and was awarded $28,576.65. The decision is the most detailed roadmap yet of what an association actually recovers under Vermont's fee-shifting statute.
Village Square at Pico Condominium Owners' Association, Inc. v. Carol Adams, No. 24-CV-00746, was decided by the Vermont Superior Court, Rutland Unit (McManus, J.) on July 2, 2026.1 It is a trial-court decision and is not binding precedent.
How the association got there
The association sued a unit owner over accumulation in her unit that obstructed its limited easement to enter and inspect common facilities — power, gas and heating — on reasonable notice, and that risked a pest nuisance. Its summary-judgment motion failed: the photographs were unauthenticated, there was no proof of advance notice, and the association had never put the operative amended and restated Declaration into the record.
After a three-day bench trial in November 2025 the court found for the association in March 2026, ordered access, enjoined the excessive piles, and authorised removal and off-site storage at the owner's expense.
The count the association lost
Judgment went to the owner on the private-nuisance count. The court held such a claim “could not be asserted by an association of all unit owners against a condominium unit owner” — a clean holding that an association cannot sue one of its own members for private nuisance.
The fee statute
27A V.S.A. § 4-117(a) is a fee-shifting exception to the American Rule. The court described it, following Official Comment 1, as permitting “court costs and attorney's fees to be awarded in the discretion of the court to any party that prevails in an action”, citing Post & Beam Equities Group, LLC v. Sunne Village Development Property Owners Ass'n, 2015 VT 60, ¶ 47, 199 Vt. 313 — still the controlling Vermont authority on association fee awards.
Note the shape of it. It is discretionary, it runs to any prevailing party, and it is not limited to associations.
Where the money went
The court applied the lodestar method and cut the request by roughly 25 percent as excessive, declining a line-by-line explanation on the authority of In re Sullivan. The awards:
- $10,010 for one attorney, whose $395 hourly rate the court found poorly supported;
- $18,117 for a second attorney at $330 rising to $380 per hour, with eleven years' experience, accepted as reasonable for Rutland County;
- $449.65 in costs;
- total $28,576.65, payable within 60 days.
What counts as “costs”
The court followed Epsom v. Crandall, 2019 VT 74, ¶ 35, 211 Vt. 94: filing fees, service fees, witness fees at $30 per day, mileage, plus discretionary deposition and mediation fees — and nothing else. It read all 59 pages of invoices and allowed four line items.
That is the number to hold onto. A three-day trial produced $449.65 in recoverable costs.
What the fee ruling turned on
Rates must be supported. The $395 rate was not rejected as unreasonable in the abstract; it was poorly evidenced. The $380 rate was accepted with eleven years' experience behind it and a county-market comparison.
Billing narrative is the evidence. A court that reads every page and grants 75 percent is not punishing the association for losing. It is declining to pay for entries that do not justify themselves.
Get the declaration into the record. The association's first motion failed in part because the operative amended and restated Declaration was never filed. Every hour spent recovering from that was billed, and some of it was cut.
What to watch next
Section 4-117 applies retroactively to Vermont communities created before January 1, 1999 through 27A V.S.A. § 1-204(a)(1), so the fee shift is available to older condominiums as well as newer ones. It runs both ways: an owner who defeats an association's claim is a prevailing party too.
Related Vermont HOA Topics
Stay on top of Vermont HOA law
Every week: new Vermont legislation, court rulings, and regulatory developments affecting condos, planned communities, and property managers. Free.
No spam. Unsubscribe anytime.