COMMUNITY DEVELOPMENT ASSOCIATION [ CDA ] : SUPREME COURT RULE ON RESIDENTS OBLIGATIONS
All Residents Are Bound by the Rules and Regulations of Estate Associations, Supreme Court Pronounces in Landmark Judgement
Published by
Emmanuel Eze
Supreme Court Rules on Estate Associations
The Supreme Court has made a landmark decision on Community/Estate Development Associations. Estate residents’ or community associations formed in “gated communities” in the major urban centres in Nigeria usually levy annual charges to provide security, sanitation and other services.
The associations are mostly democratically run, giving all residents the opportunity to run for elections in executive committees or serve in sub-committees and are governed by robust constitutions. The associations resort to measures such as preventing residents who have not paid dues from leaving the estate with their cars or preventing the visitors of such residents from driving into the estates.
Residents who have been at the receiving end of such enforcement measures argue that the measures are a violation of their rights of freedom of movement, claiming that they cannot be forced to join the estate residents’ associations. The associations on the other hand argue that all residents enjoy the sanitation, security etc services that they provide. The Supreme Court has put this conflict to rest, ruling that all residents of an estate are bound by the rules and regulations of the estate residents’ or development association.
The Rules of Estate Associations are “Enforceable” Against All Residents Regardless of Membership Status
In the case of FAMAKINWA & ORS V. ODOFIN OLOJA ESTATE RESIDENTS ASSOCIATION & ORS (2016) LPELR-41066(SC), the Supreme Court held that:
1. Non-members bound by rules: Residents of an estate are bound by the rules and regulations of the estate association, even if they are not members of the association.
2. Estate association’s powers: The court recognized the estate association’s powers to make rules and regulations for the management and maintenance of the estate.
3. Enforceability: The court held that these rules and regulations are enforceable against all residents, regardless of membership status.
Rationale
The Supreme Court based its decision on the following grounds:
1. Implied consent: By purchasing or renting property within the estate, residents impliedly consent to abide by the estate’s rules and regulations.
2. Interest in the estate: Residents have a vested interest in maintaining the estate’s amenities and services, which are regulated by the association.
3. Public policy: Allowing non-members to disregard estate rules would undermine the association’s ability to maintain order and manage the estate effectively.
Limitations
However, the court also emphasized that:
1. Rules must be reasonable: Estate association rules must be reasonable and not arbitrary or oppressive.
2. Procedural fairness: Residents must be given fair notice and an opportunity to be heard before any sanctions or penalties are imposed.
In summary, Nigeria’s Supreme Court has established that residents of an estate are bound by the rules and regulations of the estate association, even if they are not members. However, the rules must be reasonable, and procedural fairness must be observed.
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