Wisconsin Supreme Court rules 5-2 in favor of Walworth State Bank
Walworth State Bank recently triumphed in a Wisconsin Supreme Court case against Abbey Springs Condominium Association.
In a 5 to 2 ruling, the Supreme Court held in favor of the bank in Walworth State Bank versus Abbey Springs Condominium Association, 2016 Wl 30. The Supreme Court reversed the decision of the Court of Appeals.
The case involved a condominium association’s policy, rule or by-law requiring the foreclosing bank to pay for past due property assessments before the new owner could use common condominium facilities.
Attorney Edward F. Thompson, of Clair Law Offices in Delavan, argued before the Wisconsin Supreme Court in a case on behalf of one of the bank clients and for thousands of financial institutions whose mortgage loans and liens were at serious jeopardy, according to a press release from the law office.
Thompson argued that a condominium association’s policies which forbid the use of all recreation facilities to owners of any unit upon which assessments are delinquent, regardless of whether the association’s rights were eliminated by foreclosure, violates Wisconsin statutes. Thompson also argued that a policy requiring the bank or its successors in interest to pay unpaid condominium dues and assessments incurred prior to the confirmation of sale to the bank affects the quality of the unit’s title or marketability, also violating Wisconsin statutes.
The court eventually ruled condominium policy effectively revived the lien against the property that the Order of Judgment on Foreclosure entered against the condominium and the former unit owners had extinguished. Furthermore, the court rules the condominium policy violated well-established foreclosure law.
“The opportunity to present oral argument to the Justices of the Supreme Court is always a professionally awesome experience,” Thompson said. “We are delighted with the Supreme Court’s decision.”
According to the press release, the decision is not only great new for banks and financial institutions, but also for purchasers of condominiums.
“This was a tremendous win for our law firm and the entire lending industry and we are proud of everyone at Clair Law Offices who worked on this case,” CEO J. Edward Clair said.
