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JerryO1 (Florida)
Posts: 3
Posted:
I am the president of my HOA and have been for the past 4 years since the builder handed the board over to the residents. Unfortunately for the past 4 years we have not been able to do anything, including hold a new annual election, because the builder defined a quorum as 2/3 of the houses (300). The board continues to roll each year because we can't even hold a proper election. We joke that the only way out is to move or die but on a more serious note it has also prevented the board from doing its necessary business. We have held get out the vote campaigns, neighborhood carnivals, and just about everything we can thing of to get proxy voted but we can only muster around 10% of the residents which is a far cry from the 2/3 requirement. Ultimately our goal is to change the quorum rules to something reasonable but need a quorum to do that so we are stuck in a catch 22. Is there any advice on what I can do? I have read in other states about petitioning the courts to change the rules but can not find a similar statute in Florida that would allow us to do this. We have even thought of raising the monthly dues (Which we do have the power to do) to $10,000 per month just to get people to come out an complain or totally dissolve the corporation and try to start back up again. We are that desperate.
JayP3 (Florida)
Posts: 154
Posted:
Jerry,

Please re-review the Florida statutes (720) for HOAs. It trumps what the builder set up in some (many?) areas. You'll see that the member's/annual meeting quorum requirement is only 30% not 66.6% (2/3).

Apathy is rampant especially when most are content.

As far as the $10K dues thing. You can't do that unless you can show that is the annual cost per year, per unit, to operate the HOA.

I don't see how the failure to conduct an election is preventing the BOD from conducting business unless you don't have enough BOD members to achieve a BOD quorum.

You can always appoint to fill vacant BOD positions at any time if you have volunteers.

If not able to do this you may be forced into receivership. Not good.
CarolF (Florida)
Posts: 435
Posted:
Jerry - if you are a community of individual homes (not condominiums)FL Statute 720 applies. Your quorum number for a members meeting is 30%

720.306 Meetings of members; voting and election procedures; amendments.—
(1) QUORUM; AMENDMENTS.—
(a) Unless a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests. Unless otherwise provided in this chapter or in the articles of incorporation or bylaws, decisions that require a vote of the members must be made by the concurrence of at least a majority of the voting interests present, in person or by proxy, at a meeting at which a quorum has been attained.
CarolF (Florida)
Posts: 435
Posted:
Jerry - another thought for you. Perhaps you should think about a Property Manager. In FL they are called CAMs (Certified Association Managers) and must be licensed. I don't know what common areas you own, or if you have a pool or other recreation areas, but this would be an additional reason to consider a CAM. You could have avoided these problems by knowing the correct quorum and attempting to get enough proxies to hold the meetings, and a good CAM could have lead you through the process correctly.
There are CAMs that manage a portfolio of associations. Our CAM manages about 7, and I don't think we could do without one.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By JerryO1 on 10/09/2012 12:55 PM
I have read in other states about petitioning the courts to change the rules but can not find a similar statute in Florida that would allow us to do this.

Consult an attorney about this. The bulk of American law is common law, not statutes, and is extremely difficult for the layman to research. More than likely, the courts will allow your association to lower the quorum to something reasonable.

JayP3 (Florida)
Posts: 154
Posted:
Quote:
Posted By LarryB13 on 10/09/2012 3:12 PM
Posted By JerryO1 on 10/09/2012 12:55 PM
I have read in other states about petitioning the courts to change the rules but can not find a similar statute in Florida that would allow us to do this.


Consult an attorney about this. The bulk of American law is common law, not statutes, and is extremely difficult for the layman to research. More than likely, the courts will allow your association to lower the quorum to something reasonable.


We tried this. Save your money. As Jerry (OP) noted there is no provision in Fla.

The statute was amended to address this citing a minimum to assure fair representation UNLESS the current docs. specify a LOWER number.
JayP3 (Florida)
Posts: 154
Posted:
Quote:
Posted By CarolF on 10/09/2012 2:36 PM
Jerry - another thought for you. Perhaps you should think about a Property Manager. In FL they are called CAMs (Certified Association Managers) and must be licensed. I don't know what common areas you own, or if you have a pool or other recreation areas, but this would be an additional reason to consider a CAM. You could have avoided these problems by knowing the correct quorum and attempting to get enough proxies to hold the meetings, and a good CAM could have lead you through the process correctly.
There are CAMs that manage a portfolio of associations. Our CAM manages about 7, and I don't think we could do without one.

In Fla. CAMs are discouraged from providing this and other information which may be determined to be 'practicing [law] without a license".

Read about it here:
https://www.floridabar.org/divcom/jn/jnnews01.nsf/8c9f13012b96736985256aa900624829/2f0f55449e86cf0985257a4f0052d0b2!OpenDocument
CarolF (Florida)
Posts: 435
Posted:
Yes, I read that the bar is floating this, but I don't think it has been accepted as doctrine yet. It is a pretty straight forward statute.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Interesting point of discussion here.

While Jerry is trying to get more owners to play a role (good for him), here we have the President of a BOD (and probably the whole BOD) that might not understand the law.

No wonder some have issues with their BOD's.

LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By JayP3 on 10/09/2012 3:20 PM

Posted By LarryB13 on 10/09/2012 3:12 PM
Consult an attorney about this. The bulk of American law is common law, not statutes, and is extremely difficult for the layman to research. More than likely, the courts will allow your association to lower the quorum to something reasonable.

We tried this.

What did the court rule?

CarolF (Florida)
Posts: 435
Posted:
Jerry - I would also advise you to get the book "The law of Florida Homeowners Associations" by Peter Dunbar and Charles Dudley. They are lawyers, but the book is as a practical guide for anyone.
Be sure to get the latest edition. The last I knew there was an 8th edition, but there might be another one out. It is excellent. In the back there are sample forms for things like proxies, etc.
JerryO1 (Florida)
Posts: 3
Posted:
Thank you all for your advice. Let me address some of the comments above:

- I have researched 720.306 and it has given me some hope but we are still a fary cry from 30%

- We do have a CAMs and they have lawyers this has been referred to and they tell me there is nowhere to go with this and we just need to find a way to make quorum so I can change the quorum rules. That’s why I am here

- We do now have a full board as we have assigned people to fill vacancies so we can do some things (like approve and change contracts) but there are some bylaws we want to change / eliminate which require a quorum of the membership not just the board. Right now we are just not enforcing the ones we are trying to eliminate and allowing some things that we should not be but I know selective enforcement is not allowed.

- Thanks for the book recommendation... I will pick up a copy.

- JayP3 I would also like to know the outcome of your attempt to go through the courts.

Any other thoughts or advice would be appreciated.
RobertS17 (Florida)
Posts: 52
Posted:
+1 There is a ninth addition 2012-2013. The authors explain HOAs in an easy to understand way while referencing Florida statutes and providing plenty of sample documents. I think it's like $11 on Amazon. My only complaint is that it doesn't come in a Kindle version.
RobertS17 (Florida)
Posts: 52
Posted:
^
In response to Carol's post Re: "The law of Florida Homeowners Associations" by Peter Dunbar and Charles Dudley.
JayP3 (Florida)
Posts: 154
Posted:
Sorry for any confusion.

I was stating that we consulted our counsel. Not pursued any court order as it is not possible at this time. (In addition, I have the benefit of an 'in-law' relative who advised me personally of the same.)

We were advised that there is no relief under current FL. law to modify our docs. In this instance your membership MUST [vote to] make such changes unless/until the legislature would makes such changes for you.

Therefore no possible court order can modify our (your?) docs. with regards to quorums. (Yea, as our current contract remains intact!)

So, you must work within your community to make such changes. A good thing IMO.

You want others to decide for you?

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By JayP3 on 10/13/2012 5:48 PM
Sorry for any confusion.

I was stating that we consulted our counsel. Not pursued any court order as it is not possible at this time. (In addition, I have the benefit of an 'in-law' relative who advised me personally of the same.)

We were advised that there is no relief under current FL. law to modify our docs. In this instance your membership MUST [vote to] make such changes unless/until the legislature would makes such changes for you.

Therefore no possible court order can modify our (your?) docs. with regards to quorums. (Yea, as our current contract remains intact!)

So, you must work within your community to make such changes. A good thing IMO.

You want others to decide for you?


Some do advocate for that. Not me, but some do.

Read "JM10's" post on this chat. She pleads for people to help her have the politicians/bureaucrats of CA to control/make decisions for an association, not the BOD.

LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By JayP3 on 10/13/2012 5:48 PM
Sorry for any confusion.

I was stating that we consulted our counsel. Not pursued any court order as it is not possible at this time. (In addition, I have the benefit of an 'in-law' relative who advised me personally of the same.)

We were advised that there is no relief under current FL. law to modify our docs. In this instance your membership MUST [vote to] make such changes unless/until the legislature would makes such changes for you.

Therefore no possible court order can modify our (your?) docs. with regards to quorums. (Yea, as our current contract remains intact!)

Jay,

With all due respect to your in-law, I think you have been badly advised.

This is not an HOA issue. It is a matter of contract law. Your CC&R's are a contract. You and the rest of the owners in your development entered into a contract that contained impossible provisions.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Sorry, I hit the wrong button at the wrong time.

The CC&R's are a contract and in this case contains a provision for a quorum that cannot be met. As a result of this provision, the individual parties are being denied the benefits of their bargain, namely that they be able to control their own association. In this case, the contract was not the result of mutual bargaining among the parties but an "adhesion contract" thrust upon unsuspecting buyers by the developer who is no longer involved in the contract.

It is not uncommon for parties to find themselves in a contract containing terms and conditions that they did not bargain for. Sometimes, neither party understands the terms and conditions. Next time you rent a car, ask the rental agent to explain all those provisions in fine print on the back of the contract. Very few agents can do this even though they are acting to bind you and their company to a legal contract.

The courts can and do reform contracts that contain unworkable provisions. This is an inherent common-law power of the courts and you are unlikely to find a statute to address reformation of contracts. Reformation is a fairly common procedure and becomes complicated only if one or more parties object. In this case, is there anyone who is going to argue in favor of keeping the 2/3 quorum requirement that prevents them from running their own association?

I do not know where the advice came from that said the courts could not act. Whenever you ask an attorney for an opinion, there is only one answer that is acceptable and that is, "I need to research that before I can answer your question." Any other answer is crap. Lawyers do not walk around memorizing the entire body of American law. It is foolish to expect an attorney to answer any legal question without research just as it is foolish for an attorney to provide advice without research. If your attorney cannot provide you with a written opinion with citations to the statutes and cases relied on to form that opinion, his opinion is worthless.

PeterD3 (Florida)
Posts: 708
Posted:
Quote:
Posted By LarryB13 on 10/13/2012 11:16 PM
Posted By JayP3 on 10/13/2012 5:48 PM
Sorry for any confusion.

I was stating that we consulted our counsel. Not pursued any court order as it is not possible at this time. (In addition, I have the benefit of an 'in-law' relative who advised me personally of the same.)

We were advised that there is no relief under current FL. law to modify our docs. In this instance your membership MUST [vote to] make such changes unless/until the legislature would makes such changes for you.

Therefore no possible court order can modify our (your?) docs. with regards to quorums. (Yea, as our current contract remains intact!)


Jay,

With all due respect to your in-law, I think you have been badly advised.

This is not an HOA issue. It is a matter of contract law. Your CC&R's are a contract. You and the rest of the owners in your development entered into a contract that contained impossible provisions.

Thanks Larry.

I do not think 30% of membership voting is an 'impossible provision'. It takes 50% +1 to recall a director and it happens all the time. So if the DESIRE is there it can/will happen.

I'm so reassured by an anonymous forum poster that at least two Florida licensed lawyers have given bad advice.

Please post a link to any case law you have that shows where a COURT ORDER has AMMENDED the the TERMS of any Florida, county-recorded, HOA document (contract) NOT in conflict with current laws.

Since this [apathy., etc.] is an issue in many HOAs there must be many documented cases of such none of which you have supplied.

(But I guess as a layman it will be difficult for you to find, Huh?)

JohnC46 (South Carolina)
Posts: 14,265
Posted:
In my last HOA (700 standalone private homes) an effort was mounted to get our docs changed concerning quorums. In order to lower the quorum needed lowered, we had to get the presently dictated amount of quorum to do so.

It took almost six months of hard work by a dedicated group to gather enough proxies to do so.

The first think they came up with was a statement as to why they wanted to such, how it would help the association, and what it required each owner to do (sign a porxy). They came up with a simple to understand proxy. They went around door to door delivering the statement and an attached simply worded proxy. They set up a table at the pool on weekends. They handed out flyers at the gates. They had block captains to talk to people and collect proxies in their areas.

It did help that the BOD wanted the change and no one was publically against it. Apathy was the issue that had to be overcome.

It was not easy, but it got done. Not wished nor hoped for alone, but worked for and done.
JayP3 (Florida)
Posts: 154
Posted:
Peter wrote:
"Thanks Larry.

I do not think 30% of membership voting is an 'impossible provision'. It takes 50% +1 to recall a director and it happens all the time. So if the DESIRE is there it can/will happen.

I'm so reassured by an anonymous forum poster that at least two Florida licensed lawyers have given bad advice.

Please post a link to any case law you have that shows where a COURT ORDER has AMMENDED the the TERMS of any Florida, county-recorded, HOA document (contract) NOT in conflict with current laws.

Since this [apathy., etc.] is an issue in many HOAs there must be many documented cases of such none of which you have supplied.

(But I guess as a layman it will be difficult for you to find, Huh?)"

Thanks Peter but I can make my own arguements .

Although I completely agree with you Peter, Larry has made some statements which have not been established:

" As a result of this provision, the individual parties are being denied the benefits of their bargain, namely that they be able to control their own association."

The majority is in control. Many just choose to not participate as they must be satisfied(i.e. no quorum). HO participation in association business cannot be mandated.

"It is not uncommon for parties to find themselves in a contract containing terms and conditions that they did not bargain for."

Well then they did not read the contract carefully... or at all. In fact the Fla. legislature made it easier by reducing the quorum requirement from 2/3, in the OP's case, to 30% (unless docs. say LOWER %).

"In this case, is there anyone who is going to argue in favor of keeping the 2/3 quorum requirement that prevents them from running their own association? "

Moot point as the statutes cap it at 30%.
The OP has now realized this but feels they cannot achieve that either.

" It is foolish to expect an attorney to answer any legal question without research just as it is foolish for an attorney to provide advice without research. If your attorney cannot provide you with a written opinion with citations to the statutes and cases relied on to form that opinion, his opinion is worthless. "

Not sure who hasn't done their research on this topic but my bet is our counsel has.

LarryB13 (Arizona)
Posts: 4,099
Posted:
Jay,

Searching on Findlaw.com, I found 93 written opinions from the Florida Court of Appeals where the word "reformation" appears. I found another 29 such cases in the Florida Supreme Court. I have neither the time nor the need to read those cases looking for one dealing with an HOA and none may exist. Please remember that just because no HOA member has sought reformation of his contract does not mean that the court has no jurisdiction to do so and the claim made by several parties here is that the court lacks jurisdiction.

I did find the following passage in TOBIN v. MICHIGAN MUTUAL INSURANCE COMPANY regarding the general nature of the court's jurisdiction to reform:

We have held that “[a] court of equity has the power to reform a written instrument where, due to a mutual mistake, the instrument as drawn does not accurately express the true intention or agreement of the parties to the instrument.”  Providence Square Ass'n., Inc. v. Biancardi, 507 So.2d 1366, 1369 (Fla.1987) (citing Blumberg v. Am. Fire & Cas. Co., 51 So.2d 182, 184 (Fla.1951)).


I myself have sought and received reformation in relation to a family trust, which is even more inflexible than CC&R's. The trustee changed his method of operations from a single trust officer in our home town to a call center in a distant city. The trust agreement allowed the beneficiaries to select another trustee but had a requirement that any trustee have a minimum of $25,000,000 in assets, excluding a huge number of otherwise qualified trustees. I represented the majority of the beneficiaries and, through counsel, sought and received reformation of the trust agreement to allow us to select a local trustee who lacked the required assets. The hearing in court, which I attended, lasted fewer than five minutes.

If Florida 720.306 applies in to this association, the 2/3 requirement stated in the governing documents is on its face not lawful and court action to brings the docs into compliance is warranted.

Why are you betting on what research your counsel has done? It should be stated in his written opinion.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By PeterD3 on 10/14/2012 5:35 AM

I'm so reassured by an anonymous forum poster that at least two Florida licensed lawyers have given bad advice.

Per the rules of this forum, we are all anonymous or is PeterD3 your legal name? And just who are those anonymous "Florida licensed lawyers?" You seem to be rather hot under the collar because I challenged a couple of anonymous members of this forum who made unverifiable hearsay statements about advice allegedly received from unnamed persons who may or may not be members of the Florida State Bar and who may or may not have been responding to questions similar to that raise in this thread.

Quote:
Posted By PeterD3 on 10/14/2012 5:35 AM

Please post a link to any case law you have that shows where a COURT ORDER has AMMENDED the the TERMS of any Florida, county-recorded, HOA document (contract) NOT in conflict with current laws.

Since this [apathy., etc.] is an issue in many HOAs there must be many documented cases of such none of which you have supplied.


Case law is almost exclusively the published opinions issued by appellate courts. If the members of the HOA in this case were to seek reformation of their CC&R's in a trial court and no one opposed the reformation, there would be no appeal and no published opinion. The lack of case law in this regard is not proof that there is no remedy. It may be proof that no one has sought such relief or it may be proof relief was granted and no one appealed.

Both you and Jay argued that reformation is not available and that the law has no other remedy, either. The text that I quoted in my pevious post indicates that Florida courts will reform a written instrument under certain circumstances. While the quote dealt with mutual mistake in a contract, I would not interpret this snippet of law to be a full treatise on the subject of reformation. I quoted it only to establish that in Florida, as in the rest of the country, there is a legal remedy available.

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