Below is a review of the posts on Facebook and LinkedIn from the past week. You can check out the full posts by clicking on the links.
NOTE: remember that we now post every other day.
The posts on Monday 2/16/2026, here and here, noted condo association files for bankruptcy with over $40M debt. Just read the facts …
This is a 55-and-older condo community. Palm Greens at Villa Del Rey Recreation Condominium Association in FL that manages the recreational facilities and amenities for the community filed for Chapter 11 reorganization on Jan. 28. It reported $43.7 million in liabilities. Lennar Homes is the largest creditor with a $25 million claim (so over half of the total debt).
The bankruptcy filing follows a series of legal disputes between Lennar and the Association over alleged breaches of agreements tied to managing and forming the community’s shared amenities. Both Lennar and the Association had filed lawsuits in April 2025 in separate Florida counties.
Lennar have a statement to Realtor.com, asserting that it had fulfilled all required obligations. It then specified some things it had done – see the post. Lennar’s statement also included a reference to the Association’s bankruptcy filing and one of the reasons it filed, along with the status of the state-court suits. Again, see the post for more details.
The second largest creditor listed in the bankruptcy filing is the Number 2 Condo Association, which is owed $18.5 million. It’s labeled “Number 2” because Palm Greens at Villa Del Ray has two separate condo associations within the same larger community, with each one responsible for its own group of residential units and governing documents.
The official reasons behind the bankruptcy have not yet been released (but must be part of the Association’s Chapter 11 Plan when filed. Realtor.com reached out to the attorney representing the condo association, but received no response.
These types of bankruptcy filings are not unusual. And, in fact, they are becoming more common, often due to mismanagement.
So hat does a Chapter 11 filing do? It let the HOA keep running while it restructures its financial obligations under bankruptcy court supervision. And what about daily operations including collection of assessments? See the post. The plan developed as part of the bankruptcy filing is required to contain many things and allows the Association to take actions relative to its debts including those listed in the post.
So why would an association file for bankruptcy? The main reason is that it triggers an “automatic stay” which halts most lawsuits and collection actions against the association. Some of the things the bankruptcy filing (and automatic stay) do NOT do are listed in the post. Owners must be aware of the (lack of) effect on them as related to their obligations. And if an owner does not fulfill their obligations? See the post.
And despite owners still being required to perform legal obligations, there might be adverse actions as a result of the association’s bankruptcy filing. Some examples are in the post. There might also be changes to assessments (usually by way of increase). Owners must also keep in mind that an association’s bankruptcy filing might adversely affect the ability to sell homes in the community as both potential buyers and lenders will know about the filing.
TAKEAWAY: A condo or homeowners’ association bankruptcy filing may be necessary in some circumstances, but there can be affects to owners. Make sure to consult a community association lawyer with extensive knowledge of bankruptcy.
The posts on Wednesday 2/18/2026, here and here, told us Marriott Hotels companies settle EEOC claim they revoked employee’s Sabbath accommodation. This is becoming a broad trend after the Groff decision …
Marriott agreed to settle allegations it discriminated against an employee by revoking her religious accommodation despite there being no undue hardship. Let’s look at the details.
The former worker was a Seventh-Day Adventist. She had asked to avoid Saturday shifts to observe her Sabbath. Marriott initially granted that accommodation. But after a change in management, it began scheduling her to work Saturdays despite her complaints. She came to a crossroads – see the post.
So now Marriott will pay $175,000 to the former worker and also provide must non-monetary relief as detailed in the post (where the consent decree is linked).
The EEOC considers having specific days of the week off for religious reasons as a religious accommodation that is generally expected and protected under Title VII. This past September the EEOC sued Apple for allegedly discriminating against a long-time Jewish worker on the basis noted in the post. The EEOC also sued Omni Hotels Management in June – see the post for more on that. Both of those cases are still pending in the courts.
The EEOC’s position results from the Supreme Court’s 2023 decision in Groff v. DeJoy. There a US Postal Service employee’s religious request for Sundays off was at issue along with the employer’s obligation to accommodate. See the post for a reminder of the holding and basis.
Circling back to the post, Marriott did not admit liability (as happens in most if not all settlements).
TAKEAWAY: Especially when an employer has been providing an accommodation for some time, it is more difficult not to continue to accommodate. An employment lawyer can help.
The posts on Friday 2/20/2026, here and here, reported that condo association sues high-rise property owner – effect of owner of large number of units not paying assessments!
The condominium association governing Fort Collins’ tallest building is suing a company that owns property on five floors of the tower, alleging the company has failed to pay required association fees. You probably know of an association that has had to collect assessments from owners who have not fulfilled their payment obligations. But when the owner has many units, the effect of a failure to pay is magnified. Let’s dive deeper here.
The suit was filed on February 11th by the Laurel Condominium Association which oversees the Laurel, a 16-story high-rise in downtown. The association claims that the company that owns property on five floors of the building has not paid its required assessments, which are used to cover maintenance, utilities, and other shared expenses. So what happens now? The court will determine if the property owner company was required to pay the amounts claimed due by the association and what penalties or remedies may apply if they should have been paid.
TAKEAWAY: All owners are responsible to pay assessments; when they don’t, it is harder for the association to operate, including maintaining common elements. Collections are a part of life for an association – talk to a community association lawyer about collections and more.