A Delaware court has ruled on a case involving Gwendolyn Colston, a homeowner at The Greens at Wyoming, and her claims against the community's homeowners association and its developer. The court's decision, issued on October 5, 2026, addresses various allegations related to the management and maintenance of the community. This ruling is significant as it impacts how homeowner associations operate and the rights of homeowners in Delaware.
Colston filed her original complaint on January 24, 2024, asserting multiple claims against The Greens at Wyoming Homeowners Association, Inc., its developer The Greens at Wyoming, LLC, and several individuals associated with the community. The dispute centers around the management of the community, including financial issues and maintenance responsibilities. The case reached the Court of Chancery of Delaware after Colston sought a default judgment against the developer for failing to respond to her amended complaint.
Initially, on September 3, 2025, Colston submitted an amended complaint that included the developer as a defendant. Following this, she filed a motion for default judgment on February 10, 2026, arguing that the developer had not responded to her claims. However, the court denied her initial request for default judgment on May 20, 2026, stating that Colston had not properly served the developer with the necessary legal documents.
After Colston successfully served the developer on July 6, 2026, she filed a second motion for default judgment seeking various forms of relief, including a forensic audit of the homeowners association's finances, maintenance of community ponds and ditches, and disclosures regarding a loan allegedly taken out against the association. The court's ruling addressed each of these claims in detail.
The court ruled that default judgment was appropriate against the developer due to its failure to respond. However, the court also noted that not all of Colston's claims were valid. Judge Christian Douglas Wright stated, "Declarant has failed to appear, plead, or otherwise defend after being served with process, so entry of a default judgment is appropriate under Court of Chancery Rule 55(b)." The court found that some of Colston's claims did not meet the legal standards necessary for relief.
Specifically, the court determined that several sections of the Delaware Uniform Common Interest Ownership Act (DUCIOA) cited by Colston did not apply to her community because it was established before the act's effective date. As a result, the court could not grant her requests for an audit or other remedies under the DUCIOA. The court also ruled that Colston's claims under the Delaware Insurance Code and the Administrative Procedures Act were not applicable, as they pertained to different entities.
However, the court did grant Colston's request for an order directing the developer to maintain the community's ponds and ditches, stating that the developer remains responsible for these areas until legally transferring ownership. The court emphasized that Colston is entitled to an order directing the Declarant to maintain properly the Community’s ponds and ditches, but it could not grant her monetary relief for these claims.
Additionally, the court ordered the developer to provide Colston with information regarding a loan allegedly taken out against the homeowners association. Colston had raised concerns about a $44,329.59 loan, and the court ruled that the developer must disclose details about the loan, including the lender and the loan's current status.
This ruling has important implications for homeowners and homeowner associations in Delaware. It clarifies the responsibilities of developers and associations in managing community resources and finances. Homeowners may feel empowered to pursue similar claims if they believe their associations are not fulfilling their obligations.
Looking ahead, it remains to be seen whether the developer will appeal the court's decision or if any related cases will arise from this ruling. The court's order is not a final report, meaning that further actions may still take place in this case. Colston's efforts to ensure proper management of her community may inspire other homeowners facing similar issues.