JanetB2 (Colorado)
Posts: 4,219
Posts: 4,219
Posted:
Question: In CO if an owner files a lawsuit against the HOA ... if the HOA looses are attorney fees the HOA incurred assessed against all lots including the individual who filed the lawsuit?
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HOA Legal Fees
Started by JanetB2 • 13 replies • 2516 views
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TimB4 (Tennessee)
Posts: 21,047
Posts: 21,047
Posted:
Janet,
I expect that this would be the case in every state unless a court order banned the association from collecting from you and I don't think they can do that as equal application of assessments is typically part of the contract you entered into with the Association (the contract being the governing documents).
Tim
I expect that this would be the case in every state unless a court order banned the association from collecting from you and I don't think they can do that as equal application of assessments is typically part of the contract you entered into with the Association (the contract being the governing documents).
Tim
JohnB26 (South Carolina)
Posts: 1,569
Posts: 1,569
Posted:
YES BrianB (California)
Posts: 2,820
Posts: 2,820
Posted:
Yup.
so, depending on the size of your HOA, the winning side of the lawsuit recovers 19/20ths, 44/45ths, 299/300ths, etc.
so, depending on the size of your HOA, the winning side of the lawsuit recovers 19/20ths, 44/45ths, 299/300ths, etc.
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
Janet,
Normally the legal fees are paid by the HOA; however if funds are not available then the BOD may need to ask for a special assessment which would apply to all members even the one who sued the HOA -- unless something to the contrary is explicitly stated in your gov. docs.
Normally the legal fees are paid by the HOA; however if funds are not available then the BOD may need to ask for a special assessment which would apply to all members even the one who sued the HOA -- unless something to the contrary is explicitly stated in your gov. docs.
JanetB2 (Colorado)
Posts: 4,219
Posts: 4,219
Posted:
Thank you!!! We are in a really big mess with our HOA. The current homeowners have tried everything possible to avoid litigation, but it is appearing that may be our only option.
SusanW1 (Michigan)
Posts: 5,202
Posts: 5,202
Posted:
Janet - the HOA is a corporation, so that is the entity that will go to court or be sued, or whatever. The indivual members can't be individually liable for the actions of the HOA.
Years ago 2 people (actually 1 and the estate of the other since one died) sued the HOA and all residents because they were riding a snowmobile on our streets and hit a parked car. Everyone got named in the lawsuit - the HOA, the owner of the car, the members indivudually were named, - deep pockets.
The Members were protected and dropped from the lawsuit.
It was settled out of court by insurance companies for the HOA and the car owner.
So check your insurance coverage for the HOA for lawsuits filed against it.
Years ago 2 people (actually 1 and the estate of the other since one died) sued the HOA and all residents because they were riding a snowmobile on our streets and hit a parked car. Everyone got named in the lawsuit - the HOA, the owner of the car, the members indivudually were named, - deep pockets.
The Members were protected and dropped from the lawsuit.
It was settled out of court by insurance companies for the HOA and the car owner.
So check your insurance coverage for the HOA for lawsuits filed against it.
SherryH4 (Washington)
Posts: 10
Posts: 10
Posted:
We are currently in this situation. Did you assess the homeowner in question for their portion of fees? Did they pay or contest and what happened?
SherryH4 (Washington)
Posts: 10
Posts: 10
Posted:
We are currently in this situation. Did you assess the homeowner in question for their portion of fees? Did they pay or contest and what happened?
JonD1
Posts: 2,350
Posts: 2,350
Posted:
I would have to wonder in the event the HOA were to be sued is there insurance coverage in place?
Does the property have a master policy including coverge for legal actions?
That would be my first question to be answered.
I would also like to know the details of this potential action?
Who is suing, how many individuals, and on what grounds?
And what part in all of this does the OP play?
Hard to give any worthwhile advice when you base your opinions on speculation.
Does the property have a master policy including coverge for legal actions?
That would be my first question to be answered.
I would also like to know the details of this potential action?
Who is suing, how many individuals, and on what grounds?
And what part in all of this does the OP play?
Hard to give any worthwhile advice when you base your opinions on speculation.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
When you sue your HOA, you sue yourself and your neighbors. People here HATE to hear that but it's a FACT. I can't change it if I tried. It is a CONSEQUENCE of filing a lawsuit. If you are okay with that, then you can sue all you want. That's your prerogative.
When the case goes to court the HOA has the option of counter-suing for their legal or other costs. The court decides who pays the legal costs. It could be each party pays their own or one party pays for them all. IF the HOA has to have a special assessment, then the person can request from the court to be exempt from paying that. However, that's if they win and the court agrees to those terms. Otherwise, they will have to pay the special assessment along with ALL the members for the lawsuit/legal expense.
It's a BIG gamble to sue your HOA. Don't pay that special assessment the HOA can issue a lien for that. You can bite off more than you all can chew in the end.
My response still: If you want to sue? Go ahead I will wait for the paperwork... I am NOT about to hire a lawyer just because you tell me your going to sue...
When the case goes to court the HOA has the option of counter-suing for their legal or other costs. The court decides who pays the legal costs. It could be each party pays their own or one party pays for them all. IF the HOA has to have a special assessment, then the person can request from the court to be exempt from paying that. However, that's if they win and the court agrees to those terms. Otherwise, they will have to pay the special assessment along with ALL the members for the lawsuit/legal expense.
It's a BIG gamble to sue your HOA. Don't pay that special assessment the HOA can issue a lien for that. You can bite off more than you all can chew in the end.
My response still: If you want to sue? Go ahead I will wait for the paperwork... I am NOT about to hire a lawyer just because you tell me your going to sue...
Former HOA President
SherryH4 (Washington)
Posts: 10
Posts: 10
Posted:
Jon and Melissa, we were never in litigation. Only sought counsel to respond to a Settlement and Release from a homeowner's lawyer. No suits were filed, but we racked up over 13,000 in fees. So, fees are not for litigation, per se, but for preparing response and communicating with their lawyer. From what I have been reading and checking on-line we can bill them for their portion of the HOA's bill for counsel. As you say, Melissa, they spent their own money in pushing the HOA to hire a lawyer.
SherryH4 (Washington)
Posts: 10
Posts: 10
Posted:
Jon and Melissa, we were never in litigation. Only sought counsel to respond to a Settlement and Release from a homeowner's lawyer. No suits were filed, but we racked up over 13,000 in fees. So, fees are not for litigation, per se, but for preparing response and communicating with their lawyer. From what I have been reading and checking on-line we can bill them for their portion of the HOA's bill for counsel. As you say, Melissa, they spent their own money in pushing the HOA to hire a lawyer.
NpS (Pennsylvania)
Posts: 4,216
Posts: 4,216
Posted:
Quote:
Posted By SherryH4 on 08/25/2014 12:12 PM
Jon and Melissa, we were never in litigation. Only sought counsel to respond to a Settlement and Release from a homeowner's lawyer. No suits were filed, but we racked up over 13,000 in fees. So, fees are not for litigation, per se, but for preparing response and communicating with their lawyer. From what I have been reading and checking on-line we can bill them for their portion of the HOA's bill for counsel. As you say, Melissa, they spent their own money in pushing the HOA to hire a lawyer.
Jon and Melissa, we were never in litigation. Only sought counsel to respond to a Settlement and Release from a homeowner's lawyer. No suits were filed, but we racked up over 13,000 in fees. So, fees are not for litigation, per se, but for preparing response and communicating with their lawyer. From what I have been reading and checking on-line we can bill them for their portion of the HOA's bill for counsel. As you say, Melissa, they spent their own money in pushing the HOA to hire a lawyer.
The legal fees are a community cost to prepare for and defend the lawsuit. The suing homeowner can only avoid her share if the settlement and release that the parties signed specifically exempts her. Read the release.
Sikubali jukumu. Read all posts at your own risk.
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