A Texas woman who spent six years fighting her homeowners association over a 160-square-foot backyard office has won a $100,000 attorney’s fee judgment, leaving the association facing a financial obligation that has reportedly grown beyond $153,000.
Masha Davis, a homeowner in Austin’s Davis Spring subdivision, submitted plans in July 2020 to build a detached office measuring 10 feet by 16 feet. The structure would have electricity and air conditioning but no plumbing.
The Davis Spring Property Owners’ Association rejected her application, citing concerns about the building’s height and whether it could function as a separate residence.
Davis argued that the neighborhood’s governing restrictions did not prohibit the structure. Rather than abandon her plans, she filed a lawsuit in January 2021.
The Courts Side With the Homeowner
In August 2022, a Williamson County district court determined that the applicable architectural guidelines contained no height restriction preventing Davis from building the office.
A subsequent ruling in January 2024 established that no restrictive covenant prohibited the proposed construction.
The association had attempted to enforce restrictions that the courts determined did not apply to Davis’s project.
After years of litigation, Davis sought reimbursement for legal expenses approaching $150,000. The district court awarded her $100,000 in attorney’s fees.
The association appealed the award, arguing that Davis was not entitled to the fees and challenging how her attorneys calculated their expenses.
On September 29, 2026, the Texas Third Court of Appeals unanimously upheld the judgment.
Who Will Pay the $153,000 Bill?
By November 5, the association’s financial obligation had reportedly reached approximately $153,264, including attorney’s fees, court costs and accumulated interest, according to calculations provided by Davis’s attorney.
Interest was adding approximately $34 daily.
The association represents roughly 570 homes, raising questions about whether the judgment will be paid through insurance or association funds.
Davis said insurance had covered the association’s legal defense, but whether the judgment itself would be covered remained unclear.
There has been no confirmed announcement that homeowners will face a special assessment.
Davis, who previously served as vice president of the association, resigned from its board in July 2020, the same month she submitted her building plans.
She has since called for changes to Texas HOA laws, including stronger accountability for association directors and restrictions on insurance-funded legal defenses.
A Small Office, an Expensive Dispute
The backyard office has since been built, but the financial consequences of the lawsuit remain significant.
The case highlights the limits of HOA authority. Although associations can enforce valid neighborhood restrictions, their decisions must be supported by the governing documents and applicable law.
For Davis, securing the right to build a small office required years in court and substantial legal expenses. For the homeowners association, an unsuccessful effort to block the project has resulted in a six-figure financial obligation.
