Quote:
Posted By WillR on 04/17/2011 6:52 AM
Jon,
My concerns about informing the members and such comes from the fact that they should be made aware. For the forty some years that our association has been established, the members have all respected the one lot, one member, one vote restriction. Since this new group has taking control over the past few years our restrictions and by-laws have been thrown out the window. I tried to get the board prior to my taking office to follow the by-laws. They where not have a proper election. When someone who resign they would just appoint there pal in and that was that. At the next annual meeting that person would just stay on. It wasn't until we went to mediation and the board contacted the attorney that they realized that the by-laws needed to be enforced. But that only lasted for a little while. Since more people want to be involved the group had to now find some way to insure that the vote would go their way. I what organization dose the candidate handle the return ballot? As for what my hopes are for the out come, that's easy, since this group has taken control the members have refused to get involved. I hope that the association is put back to where it was a pleasure to come to meeting and care about the place. I work hard with others to get more of the social events back up and get our clubhouse out of moth balls. I'm not in this for the money, I have even requested that the court order the treasurer and secretary to pay retribution back to the association.
Person sued; POA, four individuals who are also on the board
Court of action: Circuit court
Amount; $25,000 and a special damages in the amount of $9000.00 and $1750.00, the 25 is broken down between the five and the 9000 is divided by the three that hind funds ( in Michigan you can claim three times the amount) and the 1750 is on the treasurer alone for the pay she received and failing to do the job.
Action I tried; Talk first, mediation, an attorney that specializes in POA/HOA ( at my expense) speaking to the board, and then sending them a letter, court.
I prepared the suit and filed. I spend hours and hours on research and cases, supporting facts and evidence.
My concerns on if the members are informed is because I have tried to take great care in insuring that the effect on the whole is and little as possible. I'm do not want someone to lose a sale of the place because of a lawsuit nor the insurance premiums go up. All because a group of cohorts are acting in their own interest.
Since I was illegally removed by the board and not by vote of the members. The members have only been told lies as to why they did what they did. The minutes do not even state a reason. How can they? I caught them hiding funds. What are they going to say, "We got caught so we got rid of the person the found out so we can continue to hide more"!
Not only did they remove me but they held a Kangaroo court to have all my privileges removed so that I would not have contact we other members to inform of my finds.
There is only so much we as members can take from a out of control group. Check the post on this site of the number of boards that have gotten so arrogant with power they have forgotten who they are working for. I at a last resort that the court has to get involved then rest assured its reached that point that if suing yourself is what it takes then do it! It may hurt for awhile but it better then letting the cancer grow!
Will:
Let me start with the fact some of what you have posted is hard to follow. Some of the details YOU understand well are difficult for at least me to understand from your posts.
Let me make a few points. With the filing of your suit it is possible this might hinder or prevent some of your neighbors ability to find buyers who might apply for a mortgage. With the restrictions and guidelines in place today many lenders may not want to give out mortgage money with a suit filed. Some use it as an excuse.
And IF the Board were to file now a claim with the insurance carrier for your property it MAY result in the costs of your master policy increasing. Again, this would depend on if your policy carries D&O coverge and IF they make a claim.
In that case the carrier would need to determine whether they would cover the legal costs of answering such a suit.
The one lot, one vote rule would seem to me to be applying to the vote of members on an issue affecting the entire property. As in an annual election.
Your concern as to two parties serving on the Board as owners of the same lot well that might be a different thing entirely. Is that addressed in any way in your documents? How about state law? Is that a good situation probably not is it violating the documents or law if you have studied up on this you should know the answer.
As to appointing Board members under many documents this is allowed and the person is then able to serve out the full term of the person they replaced. Again, is this in direct violation of your documents? State law?
As to your concern about the other property owners being informed. My suggestion would be the same as the one already provided you. Do the informing yourself. Whatever information the Board might provide will have their spin on it and you should be able to give the facts, CLEARLY and in a simple manner. As suggested I would ask someone to review your notice because as I suggest when we send out information you have to write down to the levle of your audience. Most people don't have the knowledge of details or degree of concern you have. The problem being will they ever? Today many people have little interest in getting imvolved.
Some questions:
Were you voted onto the Board by the property owners?
How were you removed? Did the owners have anything to say about this?
How have your "privileges" been removed? What are we talking about that prevennts you from contacting other owners or informing them?
In Michigan you can sue individuals serving on a HOA or POA Board personally?
In NY you cannot. As many Boards full under the business judgment rule and are not liable as individuals.
When you state I believe that Board members are "hiding" funds could you explain that? You state you are asking the court to order restitution that would suggest something has been mishandled in the way of property funds. Is that your claim?
So hiding funds accomplishes what for the members of this Board? Do you know?
Why would they go to the effort required to "hide" funds for what purpose.
How many units do you have?
How many people actually support YOUR efforts?
Will in the end if the other property owners fail to take an interest in their own homes and investments what will really change. IF this becomes a one person crusade not only will the suit do damage to your property but what will occur after the suit is settled one way or the other? Anything really positive going to happen if you win? How about if you don't?