HOA Approval for ADU

Eng v. Opperman
A170737 (First Appellate District, December 22, 2025)

​The Oppermans applied to their HOA for approval to construct an accessory dwelling unit (ADU) by converting their garage and building a new garage. The HOA Design Review Committee referred the application to the Board because of an admitted lack expertise in ADUs. The Board denied the combined ADU and garage proposal, citing concerns about traffic and fire safety. In the meantime, the Engs, adjacent property owners, filed a quiet title action against the Oppermans regarding a non-exclusive easement affecting the area in front of the Oppermans’ garage.

In response to the Eng action, the Oppermans filed a cross-complaint against the Portola Ranch Association (the HOA), asserting claims including breach of governing documents, breach of fiduciary duty, interference with business expectancy, and declaratory relief. The HOA moved for summary judgment relying on the business judgment rule and its authority under the governing documents. The trial court granted summary judgment for the Association, finding that the Board acted properly and that the business judgment rule applied. 

The Court of Appeal reviewed the judgment de novo and affirmed the trial court’s summary judgment. The appellate court held that the Board had authority under the Association’s governing documents to review and deny the combined application based on safety concerns and that its decision was protected by the business judgment rule and the doctrine of judicial deference articulated in Lamden v. La Jolla Shores Clubdominium Homeowners Assn.