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SteveM9 (Massachusetts)
Posts: 3,699
Posted:

The HOA lost, and was on the hook for about $100,000 to cover the Farrans’ legal fees, and it owed hundreds of thousands more for its own legal expenses. The HOA was financially ruined. LeBlanc said the association didn’t have the money to cover the bills, so residents voted for bankruptcy.

http://www.washingtonpost.com/local/fairfax-homeowners-group-humbled-by-court-battle-with-residents/2013/02/09/d46f9bec-6652-11e2-93e1-475791032daf_story.html
LarryB13 (Arizona)
Posts: 4,099
Posted:
But look at all the money the lawyer's made off the HOA! Both sides had attorneys who reaped a small fortune over a small political sign during a national election.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Yep. In 2010, they lost because, in my opinion, the Board quit using common sense and neither side wanted to yield (although there are plenty of reports of each side wanting to compromise).

Look at the initial issue - a political sign was 4 inches too large.

a) who would take the time to measure it?
b) There has to be a back story to this (personality conflicts or something) that caused the issue to escalate like it did.

End result, as the story says, this case caused issues for all Associations in VA and possibly across the U.S. with the crux of the issues being what we have been discussing on this site for some time - READ, UNDERSTAND and COMPLY with your governing documents and applicable State laws.

I'm currently doing research for my Association on what our CC&R's allow for enforcement issues. What I'm discovering is an eyeopener. Based on our documents, for somethings we are allowed to fine. For other things we can't fine but can impound the item and charge for it's return. For other issues we can only seek remedy through the courts. This is going to be a big issue for my Association and likely all VA associations. Since it will be difficult to amend the CC&Rs and cost prohibitive to seek legal injunctions because someone left a trash can out, I foresee new legislation in the future, which, as we all know, is the cure for everything (typed sarcastically )
TimB4 (Tennessee)
Posts: 21,059
Posted:
Here is an article that better explains the consequenses other HOA's are enduring as a result of the Belhaven opinion and the Shadowood opinion (which followed Belhaven):

Due Process Changes in VA an article from a law firm (not ours) that represents Associations in VA.
JM10 (California)
Posts: 503
Posted:
The political signs usually covers all non-commercial signs.

Our HOA took us to task for signs asking "When is the next board meeting." In California, it is required by state civil code to post in a prominent area the time, date and location of meetings at least 4 days before. Our own CC&R require 10 days mail or personal delivery.

So instead of looking at it as simply a matter of showing political affiliation, the matter should be how much free speech is allowed. Non-commercial signs also include "Happy Birthday" and "Welcome" signs.

Our HOA was so out of line the insurance paid out several tens of thousands and yes, most of it went to the legal fees on our side.

I agree that common sense was lost, but I firmly believe that members should have some way to express their views.

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