After a recent OBA webinar, the following question was asked: Is it possible for a homeowner to bring an action contesting a decision by a HOA in Small Claims Court? Small claims courts would not seem to have jurisdiction based on the statute but it seems incongruous that an individual would have to hire an attorney to bring a claim for a dispute of this type.
It is true that small claims courts in Oklahoma are courts of limited jurisdiction. 12 OS 1751 provides that actions under the Small Claims Procedure Act are limited to actions for the recovery of money under $6000.00, except those sounding in defamation, and for the recovery of property under replevin. Declaratory actions and those seeking injunctive relief may not be brought in small claims court.
Regarding a challenge to an HOA action, if the intended relief is for a declaratory ruling, setting aside an election under the Oklahoma General Corporation Act, or injunctive relief, then the action must be brought in district court.
However, see the unpublished case of Robert Glenn v. Coffee Creek Homeowners Association, Inc., No.95,427, Division 4, Court of Civil Appeals, September 18, 2001, where a homeowner brought suit in small claims court ostensibly for collection of money damages, but in reality sought to change an HOA board's decision. Judge Glenn Jones wrote a fantastic opinion setting out the parameters of the rule of reasonableness.
One should keep in mind that often the least expensive and most effective method of overturning an HOA board's decision is to have a special meeting called of the membership or have a new board elected who will make the decision you want. Of course, this method requires heavier lifting than filing a petition in district court.