Attorney Ben Kuhn Secures Judgment Against Developer Challenging Illegal Private Transfer Fees
January 15, 2014
Lead Attorney Ben Kuhn secured judgment on behalf of a Plaintiffs’ class of hundreds of past, present and future condominium residents of The Cedars of Chapel Hill, a continuing care retirement community which is part of the Meadowmont community. The case, one of first impression in North Carolina, challenged certain covenants in a condominium Declaration governing property at The Cedars.
The Declaration required condo owners to pay tens of thousands of dollars in private transfer fees upon the purchase of each unit at any time the unit is conveyed (forever), as well as tens of thousands more thereafter as monthly “Corporate Overhead Fee” payments (forever). Since 2004, the amount of illegal fees paid by the residents has exceeded $30 million. The Court also entered a permanent injunction halting the payment and collection of these fees which will also save the Cedars owners tens to hundreds of millions of dollars in the future. Chapel Hill attorney Michael Pipkin is co-counsel with Ben Kuhn.