The Ruling
On October 19, 2026, the Washington Court of Appeals, Division One, issued a published opinion in Hillius v. 18 Paradise LLP, a case that began with homeowners at the Homestead community in Lynden.
It matters to anyone who lives in a planned community, a condo, or any neighborhood that charges monthly fees.
The court did two big things.
It rejected the homeowners' Consumer Protection Act claim, and it sent the case back to the trial court with instructions to issue a money judgment.
No amount has been set yet.
How the Fight Started
Homestead is a planned residential development of roughly 250 acres with homes, condominiums, a golf course, and shared open space, according to the opinion.
In 2013, a company called 18 Paradise bought the development, and in 2017 it hired MJ Management to run the golf course and collect fees.
In 2019, the opinion says, MJ tried to change the community's governing document to add a one-time $83 assessment per resident and to raise the monthly maintenance fee from $36 to $93.
In 2020, homeowners sued, and a trial court later certified them as a class of owners.
The trial court found the increases were void because MJ never got the permission it needed from 18 Paradise before making them.
That ruling was a declaratory judgment, which is a court's statement of what the parties' rights are, without necessarily ordering anyone to pay.
Why the Homeowners Still Had No Money
After the trial court declared the fees unlawful, the owners asked for refunds.
According to the opinion, they tried for about a year to get money back, and the trial court refused to order a money judgment in November 2025.
The Court of Appeals reversed that decision.
It wrote that without a money judgment, the homeowners would be left with a hollow declaratory judgment.
It sent the case back to the trial court to issue a judgment for money damages.
The opinion does not set the amount, so what the homeowners will actually receive is not yet known.
What the Court Rejected
The homeowners also argued that the unauthorized fees violated Washington's Consumer Protection Act.
To win under that law, a plaintiff has to show the conduct affects the public interest, not just the people in the dispute.
The court agreed with the trial court that the homeowners had not shown that.
It also declined to say that a 2009 statute replaced the older public interest test from a case called Hangman Ridge.
Neither side was awarded attorney fees on appeal.
What Is Still Unsettled
Cascadia Daily News reports that ownership of the golf course and common areas is itself in question, with a firm called IMM Capital Advisors saying it took over from 18 Paradise to satisfy a debt.
The paper reports that the county assessor's records still list 18 Paradise as the owner, and that IMM's attorney has asked Whatcom County Superior Court for help finishing the title paperwork.
The Lynden City Council has also been looking at the community's water rights ahead of a 2027 deadline tied to the Nooksack adjudication, per the same report.
Those are developments reported in the news, and I have not verified them in court or county records.
I also have not found anything saying whether either side will ask for further review of the appeal decision.
Lessons for Homeowners
This is general information about a published court opinion, not legal advice.
Read your governing documents.
The case turned on who was allowed to raise fees and what steps they had to follow.
The declaration and any amendments tell you what is allowed in your community.
Ask who approved a fee change.
The trial court found these increases void because the right permission was never obtained.
If a fee increase arrives, it is fair to ask who approved it and under what section.
A declaration is not a refund.
These owners won a ruling that the fees were unlawful and still needed another round to ask for money back.
A community association attorney can explain what relief to ask for.
Not every unfair fee is a consumer protection violation.
The court held that these homeowners did not show the public interest the law requires.
Keep your records.
Statements, notices, and receipts show what you were charged and when.
If you are buying in a planned community, ask for the governing documents, the budget, and any recent fee changes before you write an offer.
If you are already an owner and a fee change looks off, a real estate attorney who handles community association matters can tell you what applies to your community.
If you would like to talk through buying or owning in a planned community, you can schedule a 15-minute call with me.
