SusanS9 (California)
Posts: 56
Posts: 56
Posted:
If a lawsuit is filed against an Association, is the Board obligated to disclose it including the specific complaint(s) and damage sought to homeowners (CA)?
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Disclosure if Lawsuit
Started by SusanS9 • 3 replies • 1460 views
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JanetB2 (Colorado)
Posts: 4,219
Posts: 4,219
Posted:
Quote:
Posted By SusanS9 on 10/25/2010 8:51 PM
If a lawsuit is filed against an Association, is the Board obligated to disclose it including the specific complaint(s) and damage sought to homeowners (CA)?
If a lawsuit is filed against an Association, is the Board obligated to disclose it including the specific complaint(s) and damage sought to homeowners (CA)?
Well let debate here ... if a lawsuit is filed against the association then who is the association? ALL the homeowners. Who is going to be the individuals pitching in to pay for the HOA attorney? ALL the homeowners. If whomever filed the lawsuit wins for damages sought who will be paying said damages? ALL the homeowners.
Here is a link for your state statutes just in case you have any other questions: http://www.associationtimes.com/stateInformation.htm
JanetB2 (Colorado)
Posts: 4,219
Posts: 4,219
Posted:
Susan:
I do not mean to come across as hard ... but I am a firm believer that it is in the best interest of any HOA to be as up front and honest with all homeowners to avoid potential problems. You may find that someone has an idea to diffuse the situation that the Board has not considered, if they have all the facts. And as I stated above it is all the members of the HOA who will be responsible for payment of attorney fees or damages sought; therefore, it would only be honest and fair for them to be aware of the circumstances pertaining to any lawsuit for which they will potentially be responsible for paying.
I do not mean to come across as hard ... but I am a firm believer that it is in the best interest of any HOA to be as up front and honest with all homeowners to avoid potential problems. You may find that someone has an idea to diffuse the situation that the Board has not considered, if they have all the facts. And as I stated above it is all the members of the HOA who will be responsible for payment of attorney fees or damages sought; therefore, it would only be honest and fair for them to be aware of the circumstances pertaining to any lawsuit for which they will potentially be responsible for paying.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Susan,
Virginia requires that it be disclosed to potential buyers. The new FHA guidelines ask the question for any financing. For my Association, Not disclosing it to the membership would seem silly if I have to tell potential buyers and their lenders.
Tim
Virginia requires that it be disclosed to potential buyers. The new FHA guidelines ask the question for any financing. For my Association, Not disclosing it to the membership would seem silly if I have to tell potential buyers and their lenders.
Tim
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