Opinion ID: 2276676
Heading Depth: 1
Heading Rank: 8

Heading: Before the June 2006 assignment

Text: The new DeBaliviere Place Association first billed Veal in 2003 to collect assessments owed under the declaration from the date in 1997 when Veal bought the properties until 2003. The declaration expressly provides that the association shall enforce the covenants and restrictions herein set forth. The billing and enforcement of the assessments are one of the covenants that the association is authorized to enforce. The declaration provides that the association shall mean and refer to DeBaliviere Place Association, a Missouri not-for-profit corporation, the former association's successor and assigns. When interpreting the declarationwhich is simply a contractit is necessary to ascertain the intent of the parties and give effect to that intention. J.E. Hathman, Inc. v. Sigma Alpha Epsilon Club, 491 S.W.2d 261, 264 (Mo. banc 1973). In an unambiguous contract, the intent of the parties is to be discerned from the contract alone. Id. The declaration gives authority to: a) the DeBaliviere Place Association that existed at that time or b) any successor or assign in interest. The declaration states that the association shall enforce the covenants and restrictions herein set forth. The declaration says `Association' shall mean and refer to DeBaliviere Place Association, a Missouri not-for-profit corporation, its successors and assigns. Because the new DeBaliviere Place Association did not exist when the declaration was written, it cannot be the DeBaliviere Place Association referred to in the declaration. As importantly, the new association in 2003 was neither the former association's successor nor assignee. Black's Law Dictionary defines successor as a corporation that, through amalgamation, consolidation, or other assumption of interests, is vested with the rights and duties of an earlier corporation[,] and assign as one to whom property rights or powers are transferred by another. BLACK'S LAW DICTIONARY, 114, 1446 (7th ed.1999). For the new DeBaliviere association to be either a successor or assign there must have been a transfer of the rights and duties from the former DeBaliviere association to the new DeBaliviere association. Before the June 2006 assignment, no rights held by the former DeBaliviere association had been transferred to the new DeBaliviere Place Association; therefore, the new DeBaliviere Place Association was not a successor or assignee entitled to enforce the declaration until the assignment was made. Between 1997 and June 2006, the new DeBaliviere association was not an entity entitled to enforce the contract and, therefore, was not authorized to file the 2005 lien against the property or foreclose on the lien in the 2006 circuit court action to enforce the declaration. Before the June 2006 assignment, the new DeBaliviere association in 2005 attempted to collect the amount Veal owed under the covenant running with the land. At that time, the new association was not authorized to bill or collect any amount owed under the declaration. The circuit court erred in foreclosing on the 2005 liens because, at the time, the new DeBaliviere association did not have authority to exercise the authority that belonged to the former association. Cf., Pioneer Point Homeowners Ass'n, Inc. v. Booth, 179 S.W.3d 397 (Mo.App. 2005).