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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

JA (Colorado)
Posts: 3
Posted:
is there anyway that i can get out of being involved as a condo owner? our HOA filed a lawsuit with a restaurant that has operated in our building for 15 years. during these 15 years, there are about 10 days in which he has always stayed open past midnight and this against our covenants that were written in 1982 saying that all businesses must close at midnight. he was allowed to operate in this fashion and also to spend 1 million in remodel expenses until an owner in our building had a falling out a few years ago and convinced the association to sue hime to protect property values. in turn, the restaurant had to sue each owner and the HOA> we have been dismissed from the individual suit and would also like to be uninvolved financially and otherwise from the HOA suit as we think it is unfair and unethical to sue after being allowed to operate for so long in this fashion.
TimB4 (Tennessee)
Posts: 21,059
Posted:
JA,

Sorry, but as a member of the Association, you are responsible for your share of any and all legal expenses born by the Association.

You might want to solicit membership support and either vote the condo board out of office or petition them to settle out of court to minimize expenses.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
JA

I believe as Tim believes:

*****Sorry, but as a member of the Association, you are responsible for your share of any and all legal expenses born by the Association.******

That said, if the place violated the rule only 10 times in 15 years (less then once a year), I would be "head hunting" (replacing) the BOD that started legal action rather then write a nasty letter and/or fine the business.

The BOD is cutting their nose off to spite their face.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
A HOa is NOT a "They or Them". It is YOU and your neighbors. YOU ARE THE HOA!!! So you and the rest of your neighbors are in this altogether like it or not. A lawyer does need to represent the HOa in court so expect to pay your fair share of that legal bill as part of your dues or special assessment.

Now this may turn into an insurance claim if your HOA is covered by liability insurance. However, you all may have to pay the deductible and any amount ruled by the court that exceeds the payout of the insurance if your to lose.

Sorry NOT good news here...Hope a lesson is learned here by the membership that you are ALL chained together climbing a mountain and next time put it to a vote what actions your HOa should take in such matters. Which by the way...A COUNTER suit would have been cheaper than filing one. Also keep this information in mind... suing Your HOA is suing yourself and your neighbors...it is the same if the HOA sues someone else...You are ALL suing or being sued...(Board memebers are HOA members to and thus don't get out of paying their part too).

Former HOA President
JA (Colorado)
Posts: 3
Posted:
All great and valid points my husband and I made in all the HoA meetings te past five years
Unfortunately lots of bored trust funders in our building in vail who seem to thrive on lawsuits
I was told I could possibly be dismissed by filing motion CrS 7-30-106 and CrS 7-30-107
Wondering of anyone has had any success- these basically say that members can't be liable for an associations actions and hoA can be sued under its own name- advice from an attorney
Thanks
JA (Colorado)
Posts: 3
Posted:
All great and valid points my husband and I made in all the HoA meetings te past five years
Unfortunately lots of bored trust funders in our building in vail who seem to thrive on lawsuits
I was told I could possibly be dismissed by filing motion CrS 7-30-106 and CrS 7-30-107
Wondering of anyone has had any success- these basically say that members can't be liable for an associations actions and hoA can be sued under its own name- advice from an attorney
Thanks
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I am confused by that advice. You are the HOA along with your neighbors. How would making the lawsuit go toward the name make a difference? It's like the boyscouts of America suing the Girl scouts of America and you have a son & daughter in both. They are still scouts and members of the organization. How does it make them any more exempt by just changing the name to reflect the organization? Your money is still going to be used in the lawsuit.

If your stuck for the ride, then make sure to make that ride the best ride. Don't be a backseat driver or passenger. Get in the front seat and see if you can help navigate a bit. Meaning use your knowledge about the fact that their lawsuits are dragging ALL the membership into them when they decide to sue. If the lawsuit is worth bringing then, the majority of owner/members should have a vote on agreeing to it. They will need that vote for a special assessment or special dues rate anyways to pay for this lawyer/legal mess. Have to think 2 steps ahead in a HOA.

Plus there may have been other options they could have used before going to a lawyer for lawsuit advice. There are liens and foreclosures options that are atronger and better for the HOA to enforce. Counter-sued is a much better option as well than to bring a suit. All of these options are available but never explored as people blindly follow a lawyer's advice who actually knowing knows these options as well. They just won't explore them with you unless you ask and know about them. That is what most people don't get when they ask for a lawyer's advice. He will give it and tell you that's the option he/she can do for you if you want them to. However, they don't go outside of their grasp to educate you on the OTHER options available if you don't know about them. I'd do a little more research in my CC&R's to see what other options can be applied in this situation than just relying on a lawyer's advice.

Former HOA President
TimB4 (Tennessee)
Posts: 21,059
Posted:
As I read it, CrS 7-30-106 and CrS 7-30-107 apply to Unincorporated Associations.

However, I am not an attorney. Since this is a legal proceeding, you should seek out the advice of a local attorney. Probably one that specializes in contract law.

Hope this helps,

Tim
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By JA on 06/23/2012 4:57 PM
Wondering of anyone has had any success- these basically say that members can't be liable for an associations actions and hoA can be sued under its own name- advice from an attorney
Thanks

Not an attorney but you are not personally liable for any wrongful act of the association. The problem, however, is that if the association loses this lawsuit and has to pay damages and/or fees to the other party, you and all the other unit owners will pay for it through assessments just as you are already funding the association's pursuit of its claim against the restaurant operator.

🎯 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