Ralston W. STEENROD, Appellant
LOUISVILLE YACHT CLUB ASSOCIATION, INC.; and Commonwealth of Kentucky, County of Oldham, Revenue Cabinet, Appellees. Louisville Yacht Club Association, Inc., Cross-Appellant
Ralston W. Steenrod, Cross-Appellee.
David L. Vish, Louisville, KY, T. Morgan Ward, Jr., Chadwick A. McTighe, Louisville, KY, for Appellant/Cross-Appellee.
David Domene, Tyler M. Jolley, Louisville, KY, for Appellee/Cross-Appellant, Louisville Yacht Club Association, Inc.
Before MAZE, STUMBO, and TAYLOR, Judges.
Ralston W. Steenrod brings Appeal No.2011-CA-001444-MR from a June 10, 2010, summary judgment granted by the Oldham Circuit Court in favor of Louisville Yacht Club Association, Inc. (Yacht Association) for condominium assessments; a July 11, 2011, order denying a motion to reconsider; and a July 11, 2011, order awarding the Yacht Association attorney's fees in this action. The Yacht Association brings Cross-Appeal No.2011-CA-001493-MR from the July 11, 2011, order awarding it attorney's fees. We reverse and remand Appeal No.2011-CA-001444-MR and dismiss Cross-Appeal No.2011-CA-001493-MR as moot.
These appeals center upon the legal question of whether the Louisville Yacht Club (Yacht Club) was properly organized and established as a condominium property regime by Louisville Yacht Club, LTD, pursuant to the statutory laws of this Commonwealth. The Yacht Club consists of a boat marina and other ancillary property located at Pond Creek on the Ohio River in Oldham County, Kentucky. Steenrod maintains that the Yacht Club
was not validly organized as a condominium property regime and, thus, the Yacht Association has no authority to assess any type of fees;  conversely, the Yacht Association argues that the Yacht Club was a validly organized condominium property regime under Kentucky law at the time it was created in 1984. The circuit court rendered summary judgment concluding that as a matter of law the Yacht Club was a valid condominium property regime and the Yacht Association's assessments were properly levied under the Master Deed.
Summary judgment may be granted in Kentucky where there exists no material issue of fact and movant is entitled to judgment as a matter of law. Kentucky Rules of Civil Procedure 56; Steelvest, Inc. v. Scansteel Service Center, Inc., 807 S.W.2d 476 (Ky.1991). For the following reasons, we conclude that the circuit court erred by rendering summary judgment in favor of the Yacht Association.
In 1984, a " Master Deed, Declaration of Condominium, Horizontal Property Regime of Louisville Yacht Club" (Master Deed) was executed and filed of record by its developer, Louisville Yacht Club, LTD. The Master Deed set forth its specific purpose as follows:
1. Purpose. The purpose of this Master Deed for a Condominium Property Regime established under the Condominium Property Laws, Section 381.805 through 381.910, of the Kentucky Revised Statutes (" KRS" ). This is a Condominium Property Regime for boat slips and certain other uses as set forth herein, and shall constitute covenants running with the land and are binding on and for the benefit of present and future owners, lessees, and mortgages of any part of the Regime.
Pursuant to the Master Deed, 158 individual " Boat Slip Units" were created as part of the marina, and these Boat Slip Units were defined as " a part of the condominium property which is subject to private ownership."  Concomitantly, the Master Deed defined a " Boat Slip Unit Owner" as " the fee simple owner of a Boat Slip Unit." Also, the Master Deed provided that each Boat Slip Unit Owner possessed an undivided share in common elements, including swimming pool, dock, and clubhouse. The Yacht Association was specifically created as the governing body of the Yacht Club in the Master Deed and consisted of all boat slip owners. It is clear that the Master Deed attempted to create a condominium property regime consisting of common property and individually owned Boat Slip Units that comprised the marina.
In this Commonwealth, the creation and establishment of a condominium property regime is governed by Kentucky Revised Statutes (KRS) 381.805 to KRS 381.910 and is specifically referred to ...