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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>The application of statutes of limitations to challenges to association actions keeps coming up as I regularly have to deal with old amendments that seem to very often have ignored the proper procedures when enacted. So I finally decided to do the research, Here it is, please let me know if I am missing something:<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>What about using the statute of limitations to support an association's action? When can an association simply say, ok, it was not done properly, but it was within our corporate powers, so it was voidable, not void, and the statute of limitations has run so it's too late now to argue about it?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>First, this will only apply if the association is sued. If the association sues to collect assessments or remediate property or behavioral violations, and the member makes a counterclaim that the exercise of the corporate powers was defective and that the voidable action underlying the association's claim is therefore invalid; then the association may not be able to say, you can't challenge that because you are too late. Association counsel will want to consider how to strategize around this. Make them sue the association. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>If the association is sued and the statute of limitations can't be used as a defense to a responsive claim, the doctrine of ratification, Ebel v. Fairwood Park, 136 Wash. App 987 (2007) and other decisions may rescue the association's actions. Or laches, or regular estoppel, or any other equitable defense that applies. These do apply to respond to claims by defendants. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>If the statute of limitations is in play, here are some of the rules: <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoListParagraphCxSpFirst style='margin-bottom:12.0pt;text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:14.0pt;line-height:115%;font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:14.0pt;line-height:115%;font-family:"Times New Roman","serif"'>Statutes of limitations only apply as defenses to claims of a Plaintiff, not as defenses to a Defendant's responsive claims. Allis-Chalmers Corp. v. City of N. Bonneville, 113 Wash. 2d 108 (1989).<o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:-.25in;line-height:normal;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:14.0pt;font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>A corporation must act within its own authority. If an action is beyond its corporate authority, it is void ab initio. Twisp v. Chelan, 16 Wash. 2d 264.<o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:-.25in;line-height:normal;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:14.0pt;font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>If an action is within its corporate authority but taken improperly, it is voidable. It can be challenged, but the statute of limitations is an affirmative defense. Keller v. Sixty-01 Assocs. of Apartment Owners, 127 Wash. App. 614<o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:-.25in;line-height:normal;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:14.0pt;font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>If an action is within its corporate authority, but taken improperly, a party who/which benefits from the action cannot challenge it. This is another affirmative defense. Twisp v. Chelan, 16 Wash. 2d 264; Hartstene Pointe Maint. Ass'n v. Diehl, 95 Wash. App. 339<o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:-.25in;line-height:normal;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:14.0pt;font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>If a statute requires a procedure and says that an action that does not follow that procedure is void, then it is void; this includes a broad interpretation in Keller. The better discussion is in Bilanko v. Barclay Court Owners Ass'n, 185 Wash. 2d 443: mere failure to follow statutory process is not enough, there needs to be direct language in statute that makes failure to follow void. This is another affirmative defense. <o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:-.25in;line-height:normal;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:14.0pt;font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>If an action is fraudulent or seriously contrary to public policy (or if it exceeds the legal authority of the association, see Twisp), then it is also void and not void. Bilanko. This is another affirmative defense. <o:p></o:p></span></p><p class=MsoListParagraphCxSpLast style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:-.25in;line-height:normal;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-size:14.0pt;font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>The recent unpublished Parker v. Pattison has dictum that is seriously wrong on several of these doctrines. Parker Estates Homeowners Ass'n v. Pattison, No. 47402-6-II, 2016 WL 7468226 (Wash. Ct. App. Dec. 28, 2016)<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>Rob<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>Robert D. Wilson-Hoss <br>Hoss & Wilson-Hoss, LLP <br>236 West Birch Street <br>Shelton, WA 98584 <br>360 426-2999<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><a href="www.hossandwilsonhoss.com"><span style='color:blue'>www.hossandwilson-hoss.com</span></a><br><a href="mailto:rob@hctc.com"><span style='color:blue'>rob@hctc.com</span></a></span><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'><i><span style='font-family:"Times New Roman","serif"'>This message is intended solely for the use of the addressee and may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If you are not the addressee, you are hereby notified that any use, distribution, or copying of this message is strictly prohibited. If you received this message in error, please notify us by reply e-mail or by telephone (call us collect at the number listed above) and immediately delete this message and any and all of its attachments. Thank you.<o:p></o:p></span></i></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Times New Roman","serif";text-transform:uppercase'>This office does debt collection and this e-mail may be an attempt to collect a debt, Any information obtained will be used for that purpose. </span></b><span style='font-size:10.0pt;font-family:"Times New Roman","serif"'>To the extent the Federal Fair Debt Collection Practices Act (15 U.S.C. § 1692) applies this firm is acting as a debt collector for the condominium/homeowners' association named above to collect a debt owed to it. Any information obtained will be used for collection purposes. You have the right to seek advice of legal counsel.</span><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>