THE LAW CREST SECURES JUDGEMENT FOR THE INCORPORATED TRUSTEES OF ROXBURY HOMES OWNERS ASSOCIATION, LEKKI, LAGOS IN DISPUTE OVER ESTATE COMMON AREAS
The Law Crest LLP (‘TLC”) successfully represented The Incorporated Trustees of Roxbury Homes Owners Association, Lekki – Lagos (the “Home Owners” or “Claimant”)in a dispute with the Roxbury Leisure Homes Limited (the “Estate Developer”)regarding the rights of ownership and use of the management building which is within the common areas of Roxbury Leisure Homes Estate (“Roxbury Estate”).
This case arose after the Estate Developer, having sold all residential units within Roxbury Estate, sought to sell the management building to a third party in assertion of its purported ownership rights over the building. The Home Owners, now organized as a registered association, opposed this action and brought a suit to assert their rights to the common areas of Roxbury Estate and prevent the Estate Developer from selling the management building to a third party.
Representing the Home Owners, TLC argued that the management building was part of the common areas, meant solely for the collective benefit of residents. TLC demonstrated that prospective home buyers were attracted by the promise of shared spaces, as described in the Estate Handbook which was incorporated by reference into the contract of sale between the Home Owners and the Estate Developer. In Clause 2 (i), the Handbook defines common areas to include the “management building, entrance gate, driveways, recreational spaces, and other shared facilities.”
Although Clause 4 of the same Estate Handbook ambiguously grants exclusive property rights of these common areas to the Estate Developer, TLC contended that this language must be interpreted to allow residents unfettered access to, and use of the common areas, in line with the contract’s overall purpose and the residents’ expectations at purchase.
In its defence, the Estate Developer argued that the management building belonged to it for use as its personal office and that the Estate Handbook was not binding on parties. It further contended that even if it was binding, Clause 4 of the Estate Handbook vested exclusive ownership of the common areas (including the management building) in it. The Estate Developer also heavily posited that the association of the homeowners (the Claimant) was a different entity from the individual home owners and that there was no privity of contract between the Estate Developer and the registered association which the individual residents of the estates formed themselves into.
After listening to the submissions of both parties, the Court ruled in favor of the Home Owners, concurring with TLC’s submissions that:
1. The Home Owners Association, as a registered body, could maintain the action to protect members’ common rights.
2. A holistic interpretation of the contract between the parties (encapsulated in the Contract of Sale, Deed of Assignment, and Estate Handbook) shows that the rights of use and access to common areas reside with the Home Owners. Accordingly, the Estate Developer’s right of exclusive ownership was subject to the resident’s rights of use and access to the common areas and as such, the Estate Developer could not do anything to impede or limit the resident’s right of use over the common areas.
The Court granted the reliefs sought by the Claimant and consequently awarded N10,500,000(Ten Million, Five Hundred Thousand Naira) in general damages and costs against the Defendants.
The well-considered judgment of the Court is significant regarding the use of common areas within residential estates or other gated communities and establishes that developers of such estates cannot simply appropriate or sell the common areas to third parties without considering the rights of the residents.
The delighted claimants in expressing their gratitude noted that “The Law Crest team demonstrated an admirable level of professionalism, dedication, and commitment to the cause”.
The Law Crest LLP’s team was led by our Partner, Okechukwu Umemuo and our Senior Associate, Ambrose Onyemakonor.
