Breach of Fiduciary Duty

Started by PatsyO2 • 6 replies • 3038 views

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PatsyO2 (California)
Posts: 14

Posted:

Does anyone know what is the statute of limitation on suing an association for breach of fiduciary duty?

Is there anything in the Davis-Stirling Act that states that members must be alerted of criminal activity. Last year we had an arson in our clubhouse but the Association didn't alert the members about it until months later. That was only because I complained they didn't alert the residents.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Why sue? Doesn't sound like a situation for a lawsuit. Sounds like an issue that is a CRIMINAL case that should be worked between the police/court system/insurance. Those things take time and effort if the person(s) is caught.

Don't get why you need to sue and what you would sue for? Suing your HOA is suing yourself and your neighbors. Don't even see how this is a fiduciary duty in the first place. Only way I see that is if they didn't make an insurance claim and rebuild. That's all they can do besides call the police.

Arson is a crime and can take time to be determined by the FIRE department. They have a special investigator who decides if it is arson or not. The options after that is: The police know who did it and charge/arrest them. No one knows who did it and no one is arrested. Finally, someone intentionally set it for the insurance payout. Which if it was the insurance claim issue someone is facing jail time there NOT a lawsuit.

Just because you and the other members weren't informed about it. Doesn't mean anything. It may mean you or the other members did NOT attend the meetings where it was discussed. Lack of participation in your HOA doesn't justify saying your HOA isn't responsible and is run badly....

Former HOA President

SusanW1 (Michigan)
Posts: 5,202

Posted:

How was holding back information a FIDUCIARY breach?

DonnaS (Tennessee)
Posts: 5,671

Posted:

Patsy,

There was a fire in the clubhouse last year. Did not any member of the community know about it? Where was everyone? Geez, things like that usually spread amoung the members like wildfire(excuse the pun here)

The Board has the responsibility to handle these situations, that is what they are elected for. Maybe there was a reason for the delay in informing the members? Maybe the Police requested that they hold off spreading the information to the members, perhaps because of an arson investigation?

So sueing the Board is the right thing to do? Now the Board has to defend themselves against a member who feels that they, the Board, did not do their job because of lack of information to the member (s)? I don't get it. I would think that the association could spend their money better by installing more security for the clubhouse rather than lawyer money spent on defending themselves against a homeowner who feels slighted in getting information.

PatsyO2 (California)
Posts: 14

Posted:

Hi Donna,
The Fire Department came out to investigate and our security guard supervisor knew about it but it was kept confidential. The guard told me and I went to the Fire Department to get information because we weren't getting it from association. No notices were put up on the bulletin board to alert members to be vigilant until I wrote them a complaint letter and they finally after months mentioned it a newsletter. I found out from the Fire Department inspector that the investigation was turned over to the police department. Saw the police detective and got more comprehensive information and found out the association didn't even know there was a police investigation. I informed the assocation about the police report.

Just a few weeks ago there was a bicycle theft and the association put a flyer alerting the members. A bicycle theft has more priority than arson!

I attend board meetings and I am even co-chair of the security committee.

Thanks!

DonnaS (Tennessee)
Posts: 5,671

Posted:

Patsy,

Okay, so you are involved in HOA activities and especially the security end but can you honestly say that sueing the Board is the best route to take? There seems to be a big lack of good communication here. Did you talk with the Board and how about your co-chair of the committee?

This is a matter that needs to be dealt with internally. I would think of sueing as a last resort. Think of the expenses for everyone in the association.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Saw the police detective and got more comprehensive information and found out the association didn't even know there was a police investigation. I informed the assocation about the police report.

So you want to sue the association for not knowing about a police investigation? Ummmm..........

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