Georgia Appreciation Property, Inc.v.Enclave At Riverwalk Townhome Association, Inc.
Georgia Appreciation Property challenged a townhome association amendment that restricted owners from leasing their units. The trial court dismissed the action for lack of standing and also entered summary judgment for the association on the merits. The Georgia Court of Appeals held that the owner’s challenge was a direct action because it alleged an unauthorized abridgment of its own property rights rather than harm to the association. It therefore reversed the trial court’s conclusion that the action was derivative. The court nevertheless held that the trial court correctly dismissed the action for lack of standing on the separate grounds addressed in the opinion, and that the purported merits judgment was void because the dismissal had ended the case. The court vacated the merits portion of the order and remanded for entry of the proper disposition under its jurisdictional ruling.
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