K & L CRYSTAL BEACH, LLC, and ROBERT E. BOHMAN v. THE CRYSTAL BEACH CONDOMINIUM ASSOCIATION, INC., an Idaho Non-Profit Corporation; MARVIN ASKEY, ROBERT SCHWENKFELDER, EDWARD BARRETT, CHRISTOPHER BRAZIL, RONALD GROVE, MICHAEL VIRDEN, MARY MARTIN, PATTI ZATICA, TYLER BUTTERFIELD, DARRELL CARNEY, JOHN DOES 1-60 AND JANE DOES 1-60, Encroachers
CourtIdaho Supreme Court
Date FiledOctober 30, 2026
Docket52887
StatusPublished
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Full Opinion
IN THE SUPREME COURT OF THE STATE OF IDAHO
Docket No. 52887
K & L CRYSTAL BEACH, LLC, and )
ROBERT E. BOHMAN, )
)
Plaintiffs-Appellants, )
)
v. )
)
THE CRYSTAL BEACH CONDOMINIUM ) Boise, August 2026 Term
ASSOCIATION, INC., an Idaho non-profit )
corporation; MARVIN ASKEY, ROBERT ) Opinion Filed: October 30, 2026
SCHWENKFELDER, EDWARD BARRETT, )
CHRISTOPHER BRAZIL, RONALD ) Melanie Gagnepain, Clerk
GROVE, MICHAEL VIRDEN, MARY )
MARTIN, PATTI ZATICA, TYLER )
BUTTERFIELD, DARRELL CARNEY, )
JOHN DOES 1-60 AND JANE DOES 1-60, )
Encroachers, )
)
Defendants-Respondents. )
Appeal from the District Court of the Fourth Judicial District, State of Idaho, Valley
County. Jason D. Scott, District Judge.
The decision of the district court is affirmed in part, reversed in part, and remanded.
Wright Brothers Law Office, Twin Falls, for Appellants. Brooke B. Redmond
argued.
Eberle, Berlin, Kading, Turnbow & McKlveen Chartered, Boise, for Respondents.
Evan M. Westerfield argued.
_____________________
MEYER, Justice.
The Crystal Beach Condominium Association, Inc., (“CBCA”) is an Idaho non-profit
corporation serving as the owners’ association for the Crystal Beach Condominiums in McCall,
Idaho. In 2020, CBCA recorded an amended condominium declaration that altered the allocation
of owners’ common area interests and assessments, along with new rental rules and moorage rules.
Two unit owners in the complex, K & L Crystal Beach, LLC, and Robert E. Bohman (collectively,
“K&L”), filed suit against CBCA and former members of CBCA’s board of directors (collectively
“the Association”). K&L alleged claims for declaratory relief, slander of title, quiet title,
encroachment, and breach of contract, which were premised on K&L’s contention that the
Association unlawfully changed K&L’s ownership and rental rights under Idaho law or under the
Association’s declaration. K&L also filed a claim seeking to compel the Association to remeasure
unit square footage and reallocate ownership interests pursuant to Idaho Code section 55-
1505(1)(c) of the Condominium Property Act.
The district court granted summary judgment on K&L’s claims in favor of the Association,
concluding that K&L’s first five claims were barred because K&L failed to satisfy the statutory
requirements for bringing derivative claims under Idaho’s Nonprofit Corporation Act. The court
also concluded that K&L failed to establish that the Association acted in bad faith when it
reallocated ownership interests in 2020; therefore, K&L was not entitled to specific performance.
On appeal, K&L contends the district court erroneously granted summary judgment on its
first five claims because (1) Idaho’s Condominium Property Act, not the Nonprofit Corporation
Act, governed its claims and expressly grants unit owners “standing and authority” to enforce the
declaration and bylaws under Idaho Code section 55-1516; (2) even if the Nonprofit Corporation
Act governed, its claims were not derivative because the individualized harm to K&L’s property
interests were independent of its membership status. K&L also argued that the district court erred
in dismissing its claim seeking to remeasure and reallocate ownership interests under section 55-
1505(1)(c) because the question of bad faith was a disputed issue of material fact. For the reasons
set forth below, we affirm in part, reverse in part, and remand.
I. FACTUAL AND PROCEDURAL BACKGROUND
A. Factual Background
In October 1971, CBCA was organized as an Idaho non-profit corporation for a waterfront
condominium complex located in McCall, Idaho. About a month later, the Association recorded
the Condominium Declaration for the Crystal Beach Condominiums (the “Original Declaration”).
“A declaration is essentially a master deed which defines the rights and duties of the developer,
the owners of the individual condominium units and the management body of the project.”
Thompson v. Ebbert, 144 Idaho 315, 317, 160 P.3d 754, 756 (2007) (citation modified). Pertinent
to this appeal, the Original Declaration provides in Article XIV that amendments to the Original
Declaration require the consent of owners representing an aggregate ownership interest of 85%
and “all holders of any recorded Mortgage covering or affecting any or all of the Condominiums”:
This Declaration shall not be revoked nor shall any of the provisions herein
be amended unless the Owners representing an aggregate ownership interest of 85%
or more of the Condominiums, as reflected on the real estate records of Valley
County, Idaho, and all holders of any recorded Mortgage covering or affecting any
or all of the Condominiums, whose interests as Mortgagees appear in such records,
consent and agree to such revocation or amendment by instruments duly recorded.
Any such revocation or amendment shall be binding upon every Owner and every
Condominium whether the burdens thereon are increased or decreased by any such
amendment and whether the Owner of each and every Condominium consents
thereto.
Article XVI, section 16.1 of the Original Declaration provides “the Association on behalf
of the Owners, or, in a proper case, by an aggrieved Owner” may maintain “an action to recover
sums due and damages or injunctive relief” when an owner fails to comply with the Association’s
declaration or by-laws:
Each Owner shall comply with the provisions of this Declaration, the Articles of
Incorporation and the By-Laws of the Association, and the decisions and
resolutions of the Association adopted pursuant thereto as the same may be lawfully
amended from time to time. Failure to comply with any of the same shall be grounds
for an action to recover sums due and damages or injunctive relief or both,
maintainable by the Association on behalf of the Owners, or, in a proper case, by
an aggrieved Owner.
Lastly, Article X, section 10.1 provides that the units may be leased or rented.
Bohman and K&L Crystal Beach, LLC, each own a unit in the complex. “[C]ondominium
ownership is a hybrid form of interest in real property, entitling an owner to (1) fee simple
ownership of a unit and (2) an undivided interest in common with the other unit owners in the
common areas.” McLaughlin v. Moore, 176 Idaho 726, ___, 582 P.3d 11, 20 (2025) (citing I.C. §§
55-1503(a), 55-101B). Under the Original Declaration, each unit carries a 1.595% common-area
ownership and voting share, for a combined allocation of 3.19%. Kathleen Glover is the sole
member of K&L Crystal Beach. Defendants Marvin Askey, Robert Schwenkfelder, Edward
Barrett, Christopher Brazil, Ronald Grove, Michael Virden, Mary Martin, Patti Zattica, Tyler
Butterfield, and Darrell Carney are past members of the CBCA’s board of directors (the “Board”).
In 1993, Marvin Askey purchased a two-bedroom “loft” unit with a balcony area that “had
been enclosed by exterior doors” and an attic space that “is only accessible from within” the unit.
In 2013, Askey remodeled his unit, with the Board’s approval, by adding a vaulted ceiling in one
bedroom.
In May 2018, Bohman sent a letter to the Board raising concerns that members had
encroached on common or limited common areas while remodeling attic and patio spaces.
Thereafter, the Board held several meetings to discuss the alleged encroachments, and, on August
21, 2018, it approved an audit of three buildings in the complex by architect Cathy Sewell.
However, according to Glover’s declaration submitted in opposition to summary judgment, Askey
voted against the audit, and “[t]he then president of the board Patty Ely, never signed the agreement
with Cathy Sewell to allow her to do the work.”
In December 2018, the Board received advice of its attorney, Amy Pemberton, regarding
the encroachment issue and whether a member’s remodeling would require the Board to
recalculate the ownership percentages under Idaho Code section 55-1505(1)(c). Pemberton opined
that (1) a recalculation would only be required if the unit’s useable square footage was expanded
beyond its original boundaries, and (2) that any unit that added cubic space beyond the original
boundaries during a remodel would constitute an encroachment into the general common area. She
further stated that “finishing off a loft to be livable space would increase the square footage of the
[u]nit” and advised the Board on the procedure for amending its governing documents to
accommodate a reallocation of the owner’s interest in the common area. According to Glover, “the
board president, now Robert Schwankfelder, did not sign the agreement with Cathy Sewell
allowing her to measure the units and resolve the square footage issues.” Thereafter, the Board did
not move forward with Sewell’s audit.
In January 2020, the Board provided its members with six options for amending the
provisions of the Original Declaration, which addressed, among other things, a reallocation of
owner’s interests in common areas and liability for assessments. Pertinent here, “Option #5”
allocated ownership interests “according to relative square footage, and voting and assessments as
they are today.” Owners representing an aggregate ownership interest of 88.33% consented to
adopting Option 5. About two weeks later, the Board recorded an Amended and Restated
Declaration for the Crystal Beach Condominiums (the “Amended Declaration”). Notably, while
the Original Declaration allocated each of K&L’s units a 1.595% of undivided interest in the
common area, the Amended Declaration allocated each unit a 1.397% “Percentage Ownership [i]n
Common Area” and 1.595% “Assessment Allocation Percentage.”
After the Amended Declaration was recorded, Craig Marcus, a mortgagee, sent a letter to
the Board stating that its recording of the Amended Declaration did not comport with Article XIV
of the Original Declaration, which required the consent of all mortgagees. Thereafter, Marcus
recorded a “Mortgagee’s Notice of Refusal to Consent or Agree to Amendment[.]” In his notice,
Marcus stated that his recorded consent was required to approve amendments to the Original
Declaration under Article XIV and that he did not consent.
In February 2020, the Board disseminated rental rules governing owners’ rights to rent
their units. These rules are not in the record, and their contents are unknown. According to a
declaration submitted by Glover in opposition to summary judgment, the Board “threatened fines
or evictions if people failed to comply with the rules and regulations.” In response, Glover sent a
letter to the Board alleging that the proposed rules violated former Idaho Code section 55-115,
which prohibited “homeowner’s association[s]” from enforcing restrictions that limit “the
rental . . . of any property, land or structure thereon within the jurisdiction of the homeowner’s
association, unless expressly agreed to in writing at the time of such addition or amendment by the
owner of the affected property.” I.C. § 55-115(3) (2020). Bohman also objected to the rental rules,
stating that he would not consent and that they violated section 55-115(3) (2020). The record does
not clarify what actions, if any, the Board took on the 2020 rules.
In 2022, the Board again disseminated rental rules along with amendments to its moorage
rules. It is unclear whether these rules were the same rules disseminated by the Board in 2020. The
rental rules included, among other things, limits on pets and maximum occupancy and that renters’
guests could not “utilize the common areas” or “stay in the units overnight.” The moorage rules
provided in part that vessels must be titled in the name of the unit owner or the owner’s children,
and that the transfer of a unit’s ownership during an estate administration to an adult child would
not affect moorage license priority. Thereafter, Glover sent a letter to the Board, again claiming
that the rental rules violated Idaho Code section 55-115(3) (2020) (the law was recodified as Idaho
Code section 55-3211 as of July 1, 2022). She further stated that she had “not received a ballot for
the rental rules or the moorage rules and advised that [she] would be voting” against the proposed
rules.
B. Procedural History
In May 2022, K&L filed suit against the Association, asserting claims for declaratory relief,
slander of title, quiet title, encroachment, breach of contract, and to compel a remeasurement and
reallocation of ownership interests under section 55-1505(1)(c). In its prayer for relief, K&L
requested, among other things, that the court “nullify” (1) the Amended Declaration, (2) the new
moorage license policy, (3) the new rental rules, and (4) “any rules” that placed restrictions on
renting that were not contained in the Association’s bylaws at the time K&L purchased their
properties. It further requested that the court “find” that the Association was “wrong [in] not
[a]uditing the common area attic and allowing such encroachments to be made and that such
wrongful actions were willful and wanton; and a conflict of interest by Board members that had
encroached.” The Association filed an answer and demand for jury trial.
K&L and the Association filed cross-motions for summary judgment. In relevant part, the
Association argued that K&L’s claims were derivative because the injuries alleged by K&L
equally applied to the Association’s members; therefore, it was entitled to judgment as a matter of
law on each claim because K&L failed to comply with the pleading requirements for derivative
actions. In response, K&L contended that its claims were direct, not derivative, because it sought
to enforce individual property rights.
Following a hearing, the district court granted the Association’s motion for summary
judgment and denied Appellants’ motion. First, the district court determined that K&L’s claims
for declaratory relief, slander of title, quiet title, encroachment, and breach of contract were
derivative in nature because each claim challenged the validity of the Amended Declaration and
rental and moorage rules on the grounds that the Association lacked the power to act. Therefore,
the court determined that K&L was required to pursue its claims in a derivative proceeding
pursuant to Idaho Code section 30-30-304(2). However, because K&L lacked five percent of the
aggregate voting power in the Association to pursue a derivative claim as required by Idaho Code
section 30-30-411(1), the court concluded that K&L’s claims were statutorily barred. Next, the
district court determined that K&L’s statutory claim concerning reallocation of ownership interests
was a direct claim. However, the court concluded that the claim failed on the merits because K&L
did not establish that the Association acted in bad faith when it reallocated membership interests
in 2020. The court also noted that the Association established “the absence of bad faith” through
its deliberative reallocation process that ultimately was approved by 88% of the members.
K&L filed a motion to reconsider, arguing that sections 30-30-304(2) and -411(1) of the
Idaho Nonprofit Corporation Act did not govern its claims. Instead, K&L contended that its claims
were governed by Idaho Code section 55-1516, part of Idaho’s Condominium Property Act, and
Article 16.1 of the Original Declaration, both of which authorized direct enforcement actions by
owners. K&L further argued that there was a genuine issue of fact whether the Board acted in bad
faith during the reallocation process in 2020.
The district court denied K&L’s motion. First, the district court acknowledged that section
55-1516 granted condominium owners’ “standing and authority, unless otherwise provided, to
enforce the provisions of the declaration . . . .” (Emphasis omitted.) However, the court ruled that
the Nonprofit Corporation Act “otherwise provided” because it limited the authority of owners to
pursue derivative claims on behalf of a condominium association that is organized as a nonprofit
corporation. Next, the court declined to reconsider its dismissal of K&L’s bad faith claim, again
noting that proof of bad faith was lacking.
The district court entered an amended judgment dismissing K&L’s claims with prejudice,
and K&L appealed.
II. STANDARDS OF REVIEW
“When reviewing a trial court’s decision to grant or deny a motion for reconsideration, this
Court utilizes the same standard of review used by the lower court in deciding the motion for
reconsideration.” Gregory v. Stallings, 167 Idaho 123, 128, 468 P.3d 253, 258 (2020) (alteration
omitted) (quoting Wickel v. Chamberlain, 159 Idaho 532, 536, 363 P.3d 854, 858 (2015)). “This
Court exercises de novo review of a grant of summary judgment . . . .” Summerfield v. St. Luke’s
McCall, Ltd., 169 Idaho 221, 228, 494 P.3d 769, 776 (2021) (quoting AED, Inc. v. KDC Invs.,
LLC, 155 Idaho 159, 163, 307 P.3d 176, 180 (2013)).
Summary judgment is proper “if the movant shows that there is no genuine dispute as to
any material fact and the movant is entitled to judgment as a matter of law.” I.R.C.P. 56(a). “[A]
mere scintilla of evidence or merely casting a slight doubt of the facts will not defeat summary
judgment.” Fragnella v. Petrovich, 153 Idaho 266, 271, 281 P.3d 103, 108 (2012) (citation
omitted). When determining “whether the evidence shows a genuine issue of material fact, the trial
court must liberally construe the facts, and draw all reasonable inferences in favor of the
nonmoving party.” Id. (citation omitted). “The interpretation of a statute is a question of law over
which this Court exercises free review.” City of Idaho Falls v. H-K Contractors, Inc., 163 Idaho
579, 581, 416 P.3d 951, 953 (2018) (alteration omitted) (quoting Regan v. Owen, 163 Idaho 359,
362, 413 P.3d 759, 762 (2018)).
III. ANALYSIS
A. We affirm the district court’s conclusion that K&L’s first five claims were derivative
claims for which it did not have standing under the Idaho Nonprofit Corporation Act.
On appeal, K&L argues the district court erred by concluding it lacked standing to pursue
its claims for declaratory relief, slander of title, quiet title, encroachment, and breach of contract.
“Standing is a threshold determination by this Court before reaching the merits of the case.”
Associated Press v. Second Jud. Dist., 172 Idaho 113, 118, 529 P.3d 1259, 1264 (2023) (quoting
Reclaim Idaho v. Denney, 169 Idaho 406, 418, 497 P.3d 160, 172 (2021)). “At its most basic level,
standing is ‘[a] party’s right to make a legal claim or seek judicial enforcement of a duty or right.’”
A.C. & C.E. Invs., Inc. v. Eagle Creek Irrigation Co. (“Eagle Creek II”), 173 Idaho 252, 264, 540
P.3d 349, 361 (2023) (alteration in original) (quoting Standing, Black’s Law Dictionary (11th ed.
2019)). “The right to make a claim is often dependent on the type of action being brought.” Id.
In this case, the district court concluded that the derivative suit and standing requirements
of the Idaho Nonprofit Corporation Act (“NCA”) supplanted the Condominium Property Act’s
(“CPA”) broad grant of standing to condominium owners to enforce an association’s declaration
and by-laws. The district court further determined that, under the NCA, K&L’s first five claims
were derivative claims that K&L lacked standing to assert. On appeal, K&L challenges both
conclusions, which we address in turn.
1. The Idaho Nonprofit Corporation Act supplants the Condominium Property Act.
“Statutory interpretation begins ‘with the literal words of the statute; those words must be
given their plain, usual, and ordinary meaning; and the statute must be construed as a whole.’” N.
Henry’s Lake Homeowners Ass’n, Inc. v. Norton, 176 Idaho 751, ___, 582 P.3d 36, 40 (2026)
(quoting Verska v. Saint Alphonsus Reg’l Med. Ctr., 151 Idaho 889, 893, 265 P.3d 502, 506
(2011)). “[T]he Court must give effect to all the words and provisions within the statute to ensure
that none are void, superfluous, or redundant.” Id. (quoting Latah County v. Idaho State Tax
Comm’n, 175 Idaho 841, 846, 571 P.3d 962, 967 (2025)). “Where a statute is clear and
unambiguous, the expressed intent of the legislature shall be given effect without engaging in
statutory construction.” Eller v. Idaho State Police, 165 Idaho 147, 154, 443 P.3d 161, 168 (2019)
(quoting Marquez v. Pierce Painting, Inc., 164 Idaho 59, 63–64, 423 P.3d 1011, 1015–16 (2018)).
“In addition, where two statutes conflict, courts should apply the more recent and more specifically
applicable statute.” Id. (citations omitted).
In this case, two competing acts potentially address K&L’s authority to pursue its claims:
the Condominium Property Act (CPA) and the Nonprofit Corporations Act (NCA). Therefore, we
must determine whether one or both of the two competing acts applies.
The CPA, codified at Idaho Code sections 55-1501 through -1528, was enacted in 1965 to
recognize and facilitate condominium ownership as “a lawful estate in property” in Idaho. See I.C.
§ 55-1502; Act of Mar. 26, 1965, ch. 225, 1965 Idaho Sess. Laws 515, 515–31. The operations of
a condominium are conducted by a “management body.” I.C. § 55-1516; see also 15B Am. Jur.
2d Condominiums, Etc. § 21 (2025). Condominium owners are subject to the CPA, the
condominium’s declaration, and all lawful decisions made by the management body. I.C. § 55-
1516. Pertinent here, section 55-1516 grants each condominium owner “standing and authority”
to enforce the provisions of the declaration and by-laws of the project “unless otherwise provided”:
All condominium owners, tenants of such owners, employees of owners and
tenants, or any other persons that may in any manner use property or any part
thereof submitted to the provisions of this act shall be subject to this act and to the
declaration and by-laws of the project adopted pursuant to the provisions of this
act.
All agreements, decisions and determinations lawfully made by the
management body shall be deemed to be binding on all condominium owners and
shall inure to the benefit of all such owners.
Each condominium owner and any group of owners shall have standing and
authority, unless otherwise provided, to enforce the provisions of the declaration
and any recorded by-laws of the project.
I.C. § 55-1516 (emphasis added).
In 2015, the modern NCA was recodified at Idaho Code sections 30-30-101 to -1204, with
the enactment of the Idaho Uniform Business Organizations Code. See Act of Apr. 3, 2015, ch.
243, §§ 73–85, 2015 Idaho Sess. Laws 750, 968–1006. The parties do not dispute that the
Association is an Idaho nonprofit corporation. The NCA “appl[ies] to any type of lawful nonprofit
corporation formed under the provisions of this act or other laws of this state[,]” I.C. § 30-30-101,
as well as “all domestic nonprofit corporations in existence on July 1, 2015, that were incorporated
under the laws of this state[,]” I.C. § 30-30-1201. The “ultra vires” statute contained in the NCA,
Idaho Code section 30-30-304, provides in pertinent part that a derivative proceeding is the sole
judicial vehicle available to a member of a nonprofit corporation for challenging the validity of
corporate action on the ground that the corporation lacked power to act:
ULTRA VIRES. (1) Except as provided in subsection (2) of this section,
the validity of corporate action may not be challenged on the ground that the
corporation lacks or lacked power to act.
(2) A corporation’s power to act may be challenged in a proceeding against
the corporation to enjoin an act where a third party has not acquired rights. The
proceeding may be brought by a director, or by a member or members in a
derivative proceeding.
I.C. § 30-30-304(1)–(2) (emphasis added). “An ultra vires act is an act that is ‘[u]nauthorized;
beyond the scope of power allowed or granted by a corporate charter or by law.” Taylor v. Taylor,
163 Idaho 910, 918, 422 P.3d 1116, 1124 (2018) (alteration in original) (quoting Ultra Vires,
Black’s Law Dictionary (10th ed. 2014)). Section 30-30-411 further provides standing
requirements for derivative actions under the NCA:
(1) A proceeding may be brought in the right of a domestic or foreign nonprofit
corporation to procure a judgment in its favor by:
(a) Any member or members having five percent (5%) or more of the voting
power or by fifty (50) members, whichever is less; or
(b) Any director.
I.C. § 30-30-411(1)(a)–(b). Section 30-30-411 also contains specific pleading requirements for
derivative suits: a plaintiff must, among other things, verify the complaint and allege with
particularity the demand made (if any) to obtain action by the directors. I.C. § 30-30-411(3).
Below, the district court concluded that the NCA’s ultra vires and derivative suit statutes
governed K&L’s claims. While it acknowledged that section 55-1516 of the CPA broadly granted
condominium owners “standing and authority . . . to enforce the provisions of the declaration[,]”
the court determined that the qualifying clause “unless otherwise provide[ed]” expressly
established that section 55-1516 deferred to other statutory schemes, including the NCA.
On appeal, K&L contends that the district court erred when it determined that the NCA’s
ultra vires and derivative suit provisions governed K&L’s claims because the qualifying clause in
section 55-1516 refers to limitations on a unit owner’s standing as provided in a declaration, not a
separate statutory scheme. K&L further contends that the CPA should have had priority over the
NCA as the more specific statute, and the court failed to give effect to section 55-1516’s language
or to harmonize section 55-1516 with the NCA. In response, the Association contends that the
district court correctly determined that the legislature intended conflicting statutes to control over
section 55-1516 based on the qualifying clause.
For the reasons set forth below, we agree with K&L that the qualifying clause in section
55-1516 refers to limitations on a unit owner’s standing as provided in a declaration, not a separate
statutory scheme. However, we affirm the district court’s conclusion regarding the NCA’s
application in this case insofar as we reach the same result on separate grounds.
a. The “unless otherwise provided” qualifying clause refers to limitations provided in
the declaration, not a separate statutory scheme.
Our analysis begins with determining the intent of section 55-1516’s qualifying clause.
Initially, we note that the bare phrase “unless otherwise provided,” when read in isolation, could
sweep broadly enough to encompass limitations created by a declaration and separate statutes.
However, we do not read provisions of a statute in isolation. Arreola v. Scentsy, Inc., 172 Idaho
251, 257–58, 531 P.3d 1148, 1154–55 (2023) (quoting Nelson v. Evans, 166 Idaho 815, 820, 464
P.3d 301, 306 (2020)). Rather, provisions “must be interpreted in the context of the entire
document” and “[t]he statute should be considered as a whole[.]” Id. (emphasis omitted) (quoting
Nelson, 166 Idaho at 820, 464 P.3d at 306).
Here, section 55-1516 has three basic main components: (1) owners, among others, are
bound by the CPA, declaration, and bylaws; (2) the management body’s lawful decisions bind all
owners; and (3) owners retain standing to enforce the declaration and bylaws “unless otherwise
provided.” I.C. § 55-1516. Thus, section 55-1516’s primary purpose was to establish the
enforceability and ambit of the declaration and bylaws as governing documents, as well as the
management body’s authority to bind owners with its decisions. Notably, the second sentence of
the statute qualifies that owners are only bound by “lawful” decisions of the management body,
while the next sentence grants condominium owners a right to protect their interests by enforcing
the declaration. Given section 55-1516’s purpose and the lack of reference to any other statutory
scheme, K&L’s interpretation of this phrase is supported by section 55-1516’s context.
Moreover, the phrase “unless otherwise provided” is used as a qualifying clause in three
separate statutes of the CPA, and each statute clearly indicates that the clause refers to conflicting
provisions set forth in a project’s declaration, not a separate statutory scheme. See State v. Soliz,
174 Idaho 571, 576, 558 P.3d 716, 721 (2024) (“We can look at other parts of the same statute to
understand how a specific word or phrase is used when interpreting a statute.” (citing St. Luke’s
Magic Valley Reg’l Med. Ctr., Ltd. v. Bd. of Cnty. Comm’rs of Gooding Cnty., 149 Idaho 584, 589,
237 P.3d 1210, 1215 (2010))).
First, section 55-1510 provides for the removal of a project from the provisions of the CPA
by a two-thirds vote “[u]nless otherwise provided in the declaration . . . .” I.C. § 55-1510. Second,
section 55-1520 similarly authorizes the management body to hold personal property “unless
otherwise provided for in a declaration recorded pursuant to section 55-1505[.]” I.C. § 55-1520.
Third, section 55-1505 permits the declaration to contain “[p]rovisions for assessments to meet
authorized expenditures of any management body,” providing that each condominium is assessed
“in proportion, unless otherwise provided, to its owner’s fractional interest in the common areas[.]”
I.C. § 55-1505(2)(m)(1) (emphasis added). In context, section 55-1505’s use of the phrase “unless
otherwise provided” plainly refers to what the declaration provides because subsection (2) lists the
things “[t]he declaration may but need not also contain[.]” I.C. § 55-1505(2). Thus, the most
natural reading of this same phrase in section 55-1516 is that a condominium owner has standing
and authority to enforce the declaration and bylaws “unless otherwise provided” in the declaration.
For these reasons, we agree with K&L’s interpretation of section 55-1516. Therefore, the
district court erred when it concluded that the NCA governed based on its determination that
section 55-1516’s “unless otherwise provided” phrase referred to conflicting statutes. Even so, the
outcome of the case is unaffected by this error because, as set forth below, we reach the same result
regarding the NCA’s application to this case, albeit for different reasons.
b. The NCA’s specific limitations on ultra vires challenges and derivative
proceedings govern a condominium owner’s challenge to the validity of corporate
actions on the ground that the corporation lacked power to act.
Next, K&L contends that the district court erred by concluding that the NCA governed its
claims because Idaho Code section 55-1505 is the more specific statute. We disagree. “[W]hen
two statutes deal with the same subject matter, and the two are irreconcilable, the most recent
enactment governs[.]” Rydalch v. Glauner, 83 Idaho 108, 113, 357 P.2d 1094, 1097 (1960)
(citations omitted); see also Mickelsen v. City of Rexburg, 101 Idaho 305, 307, 612 P.2d 542, 544
(1980); State, Dep’t of Health & Welfare v. Wiggins (In re Est. of Wiggins), 155 Idaho 116, 123,
306 P.3d 201, 208 (2013). We have also held that, “where two statutes appear to apply to the same
case or subject matter, the specific statute will control over the more general statute.” Eller v. Idaho
State Police, 165 Idaho 147, 154, 443 P.3d 161, 168 (2019) (quoting State v. Barnes, 133 Idaho
378, 382, 987 P.2d 290, 294 (1999)); see also Wiggins, 155 Idaho at 123, 306 P.3d at 208. Thus,
“[w]here there is no clear intention otherwise, a specific statute will not be controlled or nullified
by a general one, regardless of the priority of enactment.” Radzanower v. Touche Ross & Co., 426
U.S. 148, 153 (1976) (quoting Morton v. Mancari, 417 U.S. 535, 550–51 (1974)).
The CPA’s grant of standing is irreconcilable with the NCA’s limitations on ultra vires
challenges and derivative proceedings. As set forth above, the CPA grants individual
condominium owners “standing and authority” to enforce the declaration and bylaws under Idaho
Code section 55-1516. Notably, this grant of standing is broad insofar as it does not condition
enforcement on whether the owner seeks to pursue a direct action or derivative action. Nor does it
limit the type of remedies an owner may seek. In contrast, the NCA provides that a member’s
challenge to a corporate action as ultra vires must be brought through a derivative proceeding, and
such remedy is limited “to enjoin[ing] an act where a third party has not acquired rights.” I.C. §
30-30-304(2). And, under section 30-30-411, only a member or members having five percent of
the voting power (or fifty members) are permitted to initiate such proceedings. I.C. § 30-30-
411(1)(a). Thus, where a condominium owner challenges the validity of a nonprofit corporation’s
actions as ultra vires, the CPA’s broad grant of standing is in direct conflict with the NCA’s
limitations on ultra vires challenges and derivative proceedings. Therefore, we must determine the
more recent and more specifically applicable statute. Eller, 165 Idaho at 154, 443 P.3d at 168.
Sections 30-30-304(2) and -411(1) of the NCA are the more recently enacted statutes.
However, while sections 30-30-304(2) and -411(1) are “specific” in the sense that they delineate
clear limitations on ultra vires challenges and derivative proceedings, they are also generally
applicable. As set forth above, the NCA broadly applies “to any type of lawful nonprofit
corporation,” I.C. § 30-30-101, and, relevant to the CBCA, “all domestic nonprofit corporations
in existence on July 1, 2015, that were incorporated under the laws of this state[,]” I.C. § 30-30-
1201. In contrast, the CPA only applies to condominium projects and condominium owners, and
section 55-1516 squarely addresses an owner’s standing to enforce the declaration. Therefore,
section 55-1516 is the more specific statute insofar as it applies to condominium entities. Thus,
the issue boils down to whether a “clear intention otherwise” can be discovered within the NCA
that the limitations and requirements for derivative suits set forth in sections 30-30-304(2) and -
411(1) control over conflicting statutes. See Radzanower, 426 U.S. at 154.
Here, the NCA, at Idaho Code section 30-30-1204(3), provides guidance on how courts are
to resolve conflicts between its provisions and other statutes applicable to nonprofit corporations.
It states: “[e]xcept as specifically provided in this chapter, this chapter shall not affect the
provisions of other statutes applicable to any form of nonprofit corporation.” I.C. § 30-30-1204(3).
Here, the NCA specifically provides limitations on ultra vires challenges and derivative
proceedings in nonprofit corporations. Thus, while section 55-1516 would normally control over
a less specific statute, the legislature expressed its intent for these provisions of the NCA to control
over the CPA.
Moreover, the legislature expressly provided that the statutes governing canal companies
and Carey Act companies under title 42, Idaho Code, would control over conflicting provisions of
the NCA. See I.C. § 30-30-1203 (“Should any provision of this chapter, as it pertains to canal
companies or Carey act companies, conflict with the provisions of title 42, Idaho Code, the
provisions of title 42, Idaho Code, shall prevail.”). Thus, the legislature knew how to confer the
same priority to the CPA over the NCA but elected not to.
For these reasons, we conclude that the NCA’s specific limitations on ultra vires challenges
and derivative proceedings govern a condominium owner’s challenge to the validity of corporate
actions on the ground that the corporation lacked power to act.
2. The district court correctly concluded that K&L’s claims were derivative.
Below, the district court concluded that K&L’s claims for declaratory relief, slander of
title, quiet title, encroachment, and breach of contract were derivative in nature under section 30-
30-304(2) because each challenged the validity of corporate actions on the grounds that the
Association lacked power to act. Consequently, the court dismissed K&L’s claims on standing
grounds because K&L, holding only 3.19% of the voting power, lacked the requisite voting power
to pursue its claims through a derivative proceeding under section 30-30-411(1).
On appeal, K&L contends that its claims are direct because none allege corporate-wide
harm or seek relief that flows to the CBCA as a whole; rather, it alleged particularized injuries to
its property interests that are independent from the CBCA. K&L further argues that, even if its
claims are derivative, Article XVI, section 16.1, of the Original Declaration independently granted
it standing to pursue its claims. In response, the Association contends that the substance of K&L’s
claims concerns corporate-wide injuries because any harm caused by the rental rules, moorage
rules, or Amended Declaration was suffered by each member of the CBCA. The Association
further contends that Article XVI does not permit K&L to bypass Idaho Code section 30-30-
411(1)’s standing or pleading requirements. For the reasons set forth below, we agree with the
Association.
“[A] derivative action is distinguishable from an individual action.” Eagle Creek II, 173
Idaho 252, 264, 540 P.3d 349, 361 (2023) (quoting Kugler v. Nelson, 160 Idaho 408, 413, 374
P.3d 571, 576 (2016)). “This distinction is necessary due to the unique circumstances presented
when a shareholder sues a corporation[.]” Id. We have explained that
[a] stockholder’s derivative action is an action brought by one or more stockholders
of a corporation to enforce a corporate right or remedy a wrong to the corporation
in cases where the corporation, because it is controlled by the wrongdoers or for
other reasons fails and refuses to take appropriate action for its own protection.
Id. (quoting Kugler, 160 Idaho at 413, 374 P.3d at 576). 1 On the other hand, a member may
maintain an individual action
for an injury directly affecting him, although the corporation also may have a cause
of action growing out of the same wrong, where it appears that the injury to the
[member] resulted from the violation of some special duty owed to the [member]
by the wrongdoer and having its origin in circumstances independent of the
plaintiff’s status as a [member].
1
Under the NCA, the term “member” “also mean[s] stockholder or shareholder, wherever and whenever those terms
are used in this act . . . .” I.C. § 30-30-103(13).
Kugler, 160 Idaho at 413, 374 P.3d at 576 (emphasis omitted) (quoting McMann v. McMann
(McMann II), 152 Idaho 809, 815, 275 P.3d 824, 830 (2012)).
The determination of whether a claim is derivative or direct carries significant procedural
consequences. If a