Beadles v. Lago Vista Prop. Owners Ass'n (2002)
In Beadles v. Lago Vista Prop. Owners Ass'n, No. 03-02-00228-CV (Tex. App.--Austin Nov. 2, 2002, pet. denied), Beadles, a property owner, filed suit for declaratory judgment against the property owners' association in 2000, seeking a declaration that the maintenance-fee assessments levied by the association were invalid. Id.
His challenge to the validity of the fee assessments was based in part on his allegation that a 1992 amendment to the association's voting procedures violated the Texas Non-Profit Corporation Act, thereby rendering all subsequent actions of the association invalid, including the fee assessments. Id.
The association asserted the affirmative defense of limitations, arguing that Beadles could not complain about changes made to the voting procedures more than four years after they were amended. Id.
In defense to the statute of limitations, Beadles argued that the entire corporate structure of the association, after the 1992 amendment, constituted an illegal contract and, therefore, each vote taken by the association perpetuated the underlying cause of action and defeated the running of the limitations period. Id.
The Court rejected Beadles's argument that the 1992 amendment instituted an illegal voting mechanism in violation of the Non-Profit Corporations Act. Id.
Therefore, the Court held that any complaint regarding the change in voting procedures "arose from the procedure of amending and publishing them, which took place in 1992," more than four years before Beadles brought his complaint. Id.