## Facts

- BuildAmerica-1 was a condominium consisting of a large industrial structure with 26 warehouse/garage-type units and surrounding common-area parking in Fairfax County, Virginia.
- Harry F. and Saundra K. Gillman bought two units (1976–1977) and used them for a trash-service business, including repairing, cleaning, and parking garbage trucks overnight.
- The condominium was governed by a unit owners association whose bylaws created a Board of Managers with authority to manage common elements and adopt rules and regulations.
- Governing rules restricted nuisances and “noxious or offensive activities” disturbing occupants and regulated parking on common elements.
- After complaints about truck size, parking, leaks, and odor, the Association demanded removal of the trucks and warned of towing and charges.
- The Association purported to levy escalating fines under a bylaw provision (Article III, ¶ 2(m)) and treated unpaid fines as lienable charges against the Gillmans’ units.
- The Association recorded liens for unpaid fines and sued to enforce the liens and to enjoin the Gillmans from bringing garbage trucks onto the common elements.
- The Gillmans filed a separate action seeking declaratory and injunctive relief challenging the fine-and-lien provision; the cases were consolidated.

## Issues

1. Whether a condominium association’s bylaws may authorize the board to impose monetary fines for rule violations and enforce those fines through liens on individual units without express statutory or recorded-instrument authority.
2. Whether the trial court properly granted injunctive relief enforcing valid use restrictions, rejected laches and estoppel defenses, and awarded attorneys’ fees.

## Decision

- The Supreme Court of Virginia held the bylaw provision authorizing fines and liens invalid and unenforceable because it exceeded authority granted by the Virginia Condominium Act and the recorded condominium instruments.
- The Court affirmed injunctive relief to the extent it enforced valid restrictions against nuisance-like conditions associated with the Gillmans’ truck use.
- The Court rejected the Gillmans’ laches and estoppel defenses and declined to invalidate the injunction as impermissibly vague when read in light of the proven conditions and governing restrictions.
- The Court affirmed the $1,250 attorneys’ fee award, finding no abuse of discretion given the Association’s partial success.

## Legal Principles

- A condominium association and its board may exercise only powers granted by condominium statutes and the recorded condominium instruments; bylaws cannot expand those powers.
- Statutory authorization of assessments and assessment liens does not, without more, permit creation of punitive fines secured by liens.
- Because liens affect significant property rights and may lead to foreclosure, authority to impose and enforce liens must be clearly provided by statute or governing instruments.
- Even when monetary fine-and-lien remedies are unavailable, associations may enforce valid use restrictions through traditional judicial remedies, including injunctions.
- Laches requires more than delay; and estoppel is not readily applied to bar enforcement of recorded restrictions addressing continuing harmful conditions.

## Conclusion

The court invalidated a condominium bylaw that attempted to create board-imposed fines secured by liens, while affirming tailored injunctive relief enforcing legitimate use and nuisance restrictions and upholding a modest attorneys’ fee award.


Unit Owners Ass’n of BuildAmerica-1 v. Gillman, 292 S.E.2d 378 (Va. 1982)