Q–Our condominium association throws a party every year where drinks are served to owners and guests. Some of us feel that the association should have dram shop insurance for this party to cover any potential liability in case of an accident during or after the party.
The position of the board of directors is that the association does not need this insurance because drinks are not sold at the gathering.
Regardless of whether the association is giving alcohol away or charging for it, we feel that in either instance we should be properly insured. What is your opinion?
A–The association does not need dram shop insurance, but should have host liquor liability coverage included with its general liability policy.
Host liquor liability insurance is coverage for serving liquor and is usually included in most commercial general liability policies.
If the association is not in the business of selling or serving liquor, and does not violate any law, such as serving liquor to minors, host liquor coverage should be sufficient. The board should confirm that host liquor coverage is included with the basic general liability policy, and if not, your insurance agent should include the coverage as an endorsement.
Q–I live in a condominium in the south suburbs and reside in a first floor unit. One of the units above me has approximately 25 hanging plants and other flower baskets on her patio.
The owner waters and fertilizes the plants on a regular basis. She does not have drain dishes under these plants, so all the water and fertilizer comes pouring down onto my patio. I cannot enjoy my own privacy area.
I have written to the condominium board of directors, but they will not do anything to correct this problem. The president of the association is the mother of this resident owner.
I have been told that if I do not like the situation, I should move. I do not feel this is fair to me.
Is there a law prohibiting so many plants on a patio? I also have a medical problem and should not be around so much fertilizer.
A–You are absolutely correct. While the plants shown on the pictures you enclosed are attractive, your neighbor has no legal right to create a nuisance from the excessive plant growth.
Your condominium declaration should provide that a unit owner may not create a situation which is a nuisance or annoyance to others. You have every right to expect that the board of directors will enforce this regulation.
If the board declines to control the upstairs neighbor because of the relationship with the president, the directors are breaching their fiduciary duty.
Too often, condominium residents forget that they do not reside in a single-family home and, thus, their condominium unit is not their castle. Living in close proximity to other residents requires condominium owners to limit the scope of their lifestyle.
You have a legitimate litigation claim. The facts you describe indicate that the board may be acting in bad faith and, in that case, you may also have a claim for attorneys’ fees. Unfortunately, such litigation will require you to expend significant fees.
To avoid this process, if possible, request a meeting with the board of directors. The board should make your upstairs neighbor scale back her growth of plants and provide the necessary drainage.
PMI update
The Community Associations Institute reports that a bill modifying requirements for private mortgage insurance has passed both houses of Congress.
The bill applies to new mortgages and will permit most homeowners with good mortgage payment records to cancel private mortgage insurance when the equity in their home reaches 20 percent. The bill further states that private mortgage insurance will be automatically canceled when a homeowner’s equity reaches 22 percent.
Through the assistance of CAI, the bill includes a provision which states that condominiums and cooperatives are included within the coverage of the legislation.
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Mark Pearlstein is a Chicago lawyer who specializes in condominium law. Write to him c/o Condominiums, Real Estate Section, Chicago Tribune, 435 N. Michigan Ave., Chicago, Ill. 60611. Sorry, he can’t make personal replies.
