4.3. Recovery of Post-Judgment Legal Fees and Costs of Collection (10/8/2015)

AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS, EASEMENTS AND RESTRICTIONS

(Recovery of Post-Judgment Legal Fees and Costs of Collection)

THIS AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS, EASEMENTS AND RESTRICTIONS (“Amendment”) is made this 8th day of October, 2015 by GlenRiddle Community Association, Inc. (the “Association”).

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WITNESSETH:

WHEREAS, GlenRiddle Community Association, Inc. (hereinafter the “Association”) is a duly created homeowners association by virtue of the recordation of its Declaration of Covenants, Conditions, Easements and Restrictions and Bylaws (hereinafter the “Governing Documents”) on or about September 16, 2003 among the Land Records for Worcester County, Maryland in Liber 3070, Folio 001, et seq.; and,

WHEREAS, pursuant to Article 17, Section 17.1 of the Declaration and Section 11B-116 of the Maryland Homeowners Association Act (hereinafter the “Act”), the Association has the right and power to amend the Association’s Governing Documents in order to promote and attain the purposes of the Association; and,

WHEREAS, the Association has determined that it is necessary to amend Article 6 of the Declaration pertaining to the remedies of the Association for the non-payment of assessments, pursuant to the Maryland Court of Special Appeals’ ruling in Suntrust Bank v. Goldman, el al., 201 Md. App. 390, which holds that the entry of final judgment on a contract case extinguishes any contract-based right to seek further attorneys’ fees collecting upon a judgment because any lingering claim for attorneys’ fees has no legal ground upon which to stand after the underlying contract is merged into the final judgment and ceases to exist as an independent cause of action; and,

WHEREAS, the holding in Suntrust prevents the Association from seeking further attorney’s fees and costs which it incurs in collecting upon a judgment awarded in its favor against a delinquent Owner, unless the Association amends its Declaration; and,
WHEREAS, pursuant to Article 17, Section 17.1 of the Declaration and Section 11B-116 of the Act, the Declaration may be amended by an instrument signed by, or the affirmative vote of, the Owners of not less than sixty-seven percent (67%) of the Living Units, provided that any amendment to the Declaration shall require the prior written consent of the Declarant during the Declarant’s Rights and Obligations Period; and,

WHEREAS, Owners representing at least sixty-seven percent (67%) of the Living Units have approved this Amendment to the Declaration at a duly held meeting and the Declarant has provided the prior written consent approving of such Amendment, as evidenced by the Certificate of the Secretary attached hereto.

NOW THEREFORE, the Declaration of GlenRiddle Community Association, Inc. is hereby amended as follows by adding the following Section 6.5 to Article 6 of the Declaration:

Section 6.5. Post-Judgment Attorney’s Fees and Costs. The Association shall be entitled to recover from a defaulting Owner all attorneys’ fees and all costs of collection that are actually incurred by the Association to collect said assessments and related charges, or any installment thereof, which are more than fifteen (15) days delinquent. The Association shall be further entitled to recover from a defaulting Owner all attorneys’ fees and costs of collection actually incurred by the Association to collect upon any judgments entered against said Owner by a court of competent jurisdiction. By way of example, such attorneys’ fees and costs of collection may include, but are not limited to, those incurred to prepare and file garnishment of property or wages, oral examinations, writs of execution, and interrogatories in the aid of enforcement of judgment. The attorneys’ fees and costs so incurred may be claimed in a suit or lien separate and apart from the suit in which the underlying judgment was obtained. Such attorneys’ fees and costs are hereby deemed to have been incurred and are not merged into that underlying judgment.

IN WITNESS WHEREOF, the Association has executed this Amendment, the day and year first above written.

BOARD OF DIRECTORS GLENRIDDLE COMMUNITY ASSOCIATION, INC