Court upholds attorney's fees in property dispute case

The Texas Court of Appeals recently upheld a lower court's decision to award attorney's fees to Masha Davis in her legal battle against the Davis Spring Property Owners' Association (POA). This ruling, issued on September 29, 2026, affects homeowners and property owners' associations across Texas, as it clarifies the circumstances under which attorney's fees can be awarded in disputes involving restrictive covenants.

The case, Davis Spring Property Owners' Association, Inc. and Amanda Mock v. Masha Davis, was filed under docket number 03-24-00592-CV. It arose from a conflict over the POA's denial of Davis's application to build an accessory structure on her property. The court's decision is significant because it reinforces the rights of property owners in similar situations and sets a precedent for how attorney's fees are handled in such disputes.

Background

Masha Davis is a resident of the Davis Spring Subdivision in Williamson County, Texas. The community is governed by a set of restrictive covenants outlined in a Master Declaration of Covenants, Conditions, and Restrictions. The POA, which includes Amanda Mock as its President, is responsible for enforcing these covenants and has an Architectural Review Committee (ARC) that reviews construction applications.

In 2020, Davis, who had previously served on the Board of Directors of the Association, submitted an application to the ARC to construct a home office in her backyard. The ARC denied her application, claiming that the proposed structure exceeded height restrictions. Davis contended that no such height restrictions existed in the governing documents and subsequently filed a lawsuit against the POA, alleging violations of the Declaration and other claims.

The lawsuit included accusations of breach of fiduciary duty and violations of both the Federal and Texas Fair Housing Acts. Davis sought declaratory relief, asserting that the ARC's denial was invalid. The case progressed through various motions, including a motion for partial summary judgment that Davis filed, which the district court granted. The court ruled that the ARC had no authority to deny Davis's application based on height restrictions.

The Ruling

The Texas Court of Appeals ultimately affirmed the district court's decision to award attorney's fees to Davis. The court ruled that Davis was entitled to reasonable attorney's fees under Section 5.006 of the Texas Property Code, which allows for such fees in actions involving breaches of restrictive covenants. The court stated, "The POA failed to preserve this issue for our review," indicating that the POA did not adequately challenge Davis's entitlement to fees during the trial.

Additionally, the court addressed the POA's argument that Davis had failed to segregate her attorney's fees, which is often required when a party seeks to recover fees for multiple claims. The court noted that Davis's attorney provided sufficient evidence that the claims were intertwined and that segregation was not necessary. The ruling emphasized that the district court had the discretion to award fees based on the evidence presented, stating, "We cannot conclude on this record that the district court abused its discretion in the amount of its award of attorney’s fees to Davis."

Impact

This ruling has significant implications for property owners and associations in Texas. It clarifies the legal standards surrounding the awarding of attorney's fees in disputes over restrictive covenants. Homeowners who believe their applications for property improvements are unjustly denied may now have a clearer path to seek both relief and compensation for legal expenses incurred in the process.

The decision also reinforces the importance of proper procedural conduct in court. The court highlighted that the POA's failure to raise certain arguments during the trial limited its ability to contest the fee award on appeal. This aspect of the ruling serves as a reminder for property owners' associations to be vigilant in their legal strategies and responses to homeowner claims.

What's Next

The POA has the option to appeal this decision to the Texas Supreme Court, although details regarding any such plans were not available in the court filing. The outcome of this case may influence similar disputes in the future, as it sets a precedent for how attorney's fees can be handled in cases involving property owners' associations and their enforcement of restrictive covenants.