Supreme Court Decision Great News for Lenders and Condominium Buyers

MADISON, WI (April 29, 2016)


Clair Law Offices is proud to announce that Attorney Edward F. Thompson argued before the Wisconsin
Supreme Court in a case on behalf of one of our Bank clients and for thousands of financial
institutions whose mortgage loans and liens were at serious jeopardy.


In Walworth State Bank v. Abbey Springs Condominium Association, 2016 WI 30, in a 5 to 2 ruling, the
Supreme Court on April 29, 2016 held in favor of the Bank.


"The opportunity to present oral argument to the Justices of the Supreme Court is always a
professionally awesome experience. We are delighted with the Supreme Court's decision," said
Attorney Ed Thompson. The Supreme Court reversed the decision ofthe Court of Appeals. The saga of
the case can best be described as: "When worlds collide- Foreclosure law v. Condominium law."


The case involved a condominium association's policy, rule or by-law that required the foreclosing
bank to pay for the past due property assessments, before the new owner could use the common condominium
facilities. Attorney Thompson presented arguments that a condominium association's policies which
forbid the use of all recreational facilities to owners of any unit upon which assessments are
delinquent, regardless of whether the association's rights were eliminated by foreclosure, violated
Wis. Stats. §703.165(2); and, that a condominium association's 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, affected the quality of the unit's title or marketability in
violation of Wis. Stats. §703.10(6).


In the complex case, the Supreme Court ruled that the 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.The Supreme Court further held that the condominium
policy violated well-established foreclosure law.


The Supreme Court's decision is great news for banks and financial institutions and for purchasers
of condominium purchasers. "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." said J.
Edward Clair, CEO of Clair Law Offices.


Read the full text of the decision here: Walworth State Bank v. Abbey Springs Condominium Association