HOA charges Owner legal fees (California)

Started by SiM • 5 replies • 2168 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

SiM
Posts: 6

Posted:

The property manager of a California condo building believes that a Unit Owner is responsible for damages related to a pipe leak, while the Owner does not believe he is responsible. The HOA Board decides to hire an attorney to evaluate the matter, and the attorney concludes that the Owner is responsible. The Board (without having scheduled a hearing with the Owner) assesses the Owner for repair costs and attorney fees. The Owner pays the assessment on time.

Question: Did the Board have the right to charge the Owner for attorney fees?

California Civil Code §1367.1: An owner is not liable for charges, interest, and costs of collection, if it is established that the assessment was paid properly on time.

MaryA1 (Arizona)
Posts: 388

Posted:

SiM,

One could argue that the statute you reference does not apply because the amount owed by the member was not assessments. However, I believe the member should have had the opportunity to meet with the board before the charges were assessed to him. Re: 1363(h) "When the board of directors is to meet to consider or impose discipline upon a member, the board shall notify the member in writing, by either personal delivery or first-class mail, at least 10 days prior to the meeting. The notification shall contain, at a minimum, the date, time, and place of the meeting, the nature of the alleged violation for which a member may be disciplined, and a statement that the member has a right to attend and may address the board at the meeting. The board of directors of the association shall meet in executive session if requested by the member being disciplined. If the board imposes discipline on a member, the board shall provide the member a written notification of the disciplinary action, by either personal delivery or first-class mail, within 15 days following the action. A disciplinary action shall not be effective against a member unless the board fulfills the requirements of this subdivision."

Anytime a case is turned over to an attorney, the member is going to be liable for attorney fees -- that's a given.

This case is a prime example of a member "thinking" he/she is right about a particular issue and refusing to pay the charges assessed by the BOD then objecting to the attorney's fees when the BOD feels it necessary to get an attorney involved to collect the amount owed. It's always best to pay the disputed fee then argue your case with the board. The board may not agree to return the fee you paid but at least there won't be any attorney fees added to the member's assessment.

SiM
Posts: 6

Posted:

Thank you for your comment, Mary.

Perhaps my original post was unclear. I would like to clarify two issues:

1) "This case is a prime example of a member...refusing to pay the charges assessed by the BOD..."

Please note that the Owner never refused to pay any assessment (or other charge).

2)It's always best to pay the disputed fee then argue your case with the board.

True. The Owner paid the assessment, and met with the Board at a later date.

DaveH4 (California)
Posts: 16

Posted:

I agree Marya isn't seeing the light. The association hired an attorney to evaluate the matter. He wasn't hired to collect. He was hired to advise the board on a matter that they could not figure out on their own. When associations vote in board members that need attorneys to figure something out the owners should pay for thos legal services not the owner that is being duped.

DaveH4 (California)
Posts: 16

Posted:

One thing I forgot to mention...Mary Just where does a homeowner go when asociation don't adheare to the statutes? Where is the enfoorcement arm of the Davis stirling act? Who runs to the homeowners aid when associations do not apply the statutes in the davis stirling act? What is written in the davis stirling act forces associations to comply with its statutes? There ar no incentives for associatios to follow the rules and no sactions when they don't. Toss that book in the trash.

MaryA1 (Arizona)
Posts: 388

Posted:

Dave,

You're right. The board hired an attorney to provide them with legal advise which the assn should pay for. I stand corrected.

Like so many other states, there is no state agency that I'm aware of to oversee HOAs and provide ajudication of HOA complaints. In a sense this does render the statutes meaningless although a saavy board will adhere to them. You never know when a member may decide to sue the board and not care what the cost to him will be.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here