Lake Arrowhead Chalets Timeshare Owners Ass'n v. Lake Arrowhead Chalets Owners Ass'n

Factual and Procedural Background

The Lake Arrowhead Chalets is a 62-unit residential condominium project. It is governed by the Lake Arrowhead Chalets Owners Association (Condominium Association). Of the 62 units, 24 are operated as time-share facilities. The time-share units are governed by the Lake Arrowhead Chalets Timeshare Owners Association (Timeshare Association).

A meeting of the members of the Condominium Association was held on February 1, 1992, to elect new members of the association’s board of directors and to vote on a proposed third amendment to the association’s bylaws. Mr. Dave Burdick, a member of the boards of directors of both the Condominium Association and the Timeshare Association, appeared at the meeting, purporting to be empowered to vote on behalf of the owners of the 24 time-share units. Burdick cast the votes of those 24 units against the proposed bylaws amendment, but the Condominium Association refused to recognize either his authority or the validity of his vote. Accordingly, the third amendment was declared to have been adopted by a vote of 36 to 0.

In March of 1992, the Timeshare Association and Bruce Rummer, an individual member of the…