## Facts

- William B. Miller owned a condominium unit in the San Antonio Villa Del Sol complex and held a fractional interest in the common elements.
- The condominium declaration and bylaws charged the homeowners association with maintaining, repairing, and replacing common elements and authorized the levy and collection of assessments from unit owners.
- In November 1984, a gas leak was discovered; an inspection determined the gas pipelines required replacement rather than temporary repair.
- The association’s board solicited bids, accepted a $61,500 bid to replace the gas lines, and voted to impose a special assessment on unit owners to fund the work.
- Miller refused to pay his share of the special assessment ($454.86) and later stopped paying monthly maintenance assessments ($117.37), which funded common expenses (including gas and water service).
- The association filed a lien and sued to collect unpaid monthly assessments and the special assessment; it also warned that nonpayment would lead to disconnection of gas and water, and it disconnected portions of Miller’s utilities.
- Miller sued the association and related defendants alleging harassment based on the utility disconnection.
- After a bench trial, the trial court held the special assessment invalid, found the association lacked authority to terminate utilities, awarded the association unpaid monthly assessments (subject to an offset for Miller’s moving costs), and denied the association prejudgment interest.
- The association appealed, challenging (1) the invalidation of the 1984 special assessment and (2) the denial of prejudgment interest.

## Issues

1. Whether the condominium declaration and bylaws authorized the association to levy a 1984 special assessment to replace common-element gas pipelines.
2. Whether the association was entitled to prejudgment interest on the unpaid assessments found due from Miller.

## Decision

- The appellate court reversed the trial court’s determination that the 1984 special assessment was invalid and held the association had authority under the governing instruments to impose it for replacement of the common gas lines.
- The appellate court held the trial court erred in denying prejudgment interest on amounts due that were fixed or readily ascertainable.
- The case was remanded for entry of judgment consistent with the appellate holdings.

## Legal Principles

- Condominium declarations and bylaws are construed under contract principles; courts give effect to their plain language and the association’s expressed purposes.
- When governing instruments authorize maintenance, repair, and replacement of common elements and authorize assessments, an association may impose a special assessment reasonably related to those authorized purposes, including extraordinary expenses to replace common elements.
- A unit owner who takes title subject to recorded condominium instruments is bound by validly adopted assessments and may be compelled to pay a proportionate share.
- Prejudgment interest is generally recoverable on obligations that are liquidated or readily ascertainable and due on determinable dates, including fixed assessment debts.

## Conclusion

The court held that a condominium association acting within the authority granted by its declaration and bylaws may levy a special assessment to replace common-element infrastructure and may recover prejudgment interest on unpaid, sum-certain assessment obligations.


San Antonio Villa Del Sol Homeowners Ass'n v. Miller, 761 S.W.2d 460 (Tex. App.—San Antonio 1988)