Management is Agent for HOA? & Indemnified

Started by DavidS63 • 11 replies • 1760 views

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DavidS63 (Florida)
Posts: 13

Posted:

In Florida:

Does anyone know of any statute of Florida case law which states that if a Management company sues a parcel owner, that such suit MUST also be on behalf of the Association since Management is the Association's agent and Management is typically indemnified by the Association in its management contract?

Thank you!

FredS7 (Arizona)
Posts: 927

Posted:

I would think that the suit must have the association as plaintiff because the association has been injured (and the management company has not been). I am not a lawyer, but I wonder if a suit by the management company would be immediately dismissed because they lack standing (in a legal sense).

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Depends.

- If a homeowner ran into the car of the management company and dented it, the lawsuit would be between the Mgmt company the homeowner. No HOA involved.

- If the Mgmt company is suing a homeowner for back dues, they are doing it on behalf of the HOA.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Your not giving us enough info to make a guess.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By FredS7 on 04/21/2013 7:16 AM
I would think that the suit must have the association as plaintiff because the association has been injured (and the management company has not been). I am not a lawyer, but I wonder if a suit by the management company would be immediately dismissed because they lack standing (in a legal sense).

I would assume a management company could sue an owner over an issue that has nothing to do with the association.

If the management company reported to the association BOD, I assume the BOD might be questioning them about it.

For sake of arguement let us assume the association is under Declarant control and maybe the Declarant said go ahead or the Declarant is also the management company.

Back to my original statement.

DavidS63 (Florida)
Posts: 13

Posted:

Management sues homeowner for tortuous interference for having made claims against their professional liability insurance policy with respect to management's failure to provide certain official records specified in an official records inspection request. Management is claiming carrier dropped them and that the new premium quotes are significantly higher and that homeowner is responsible for these damages.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Oh then the MC can sue that homeowner. If a member is going directly to the MC and by-passing the HOA board, there may be an issue there. The MC is a CONTRACTOR to the HOA. It is to do what the board tells it to do.

It sounds like to me that is a case of slander/liable on the homeowner's part. They can be sued by the MC and not the HOA. However, the HOA may want to join in on that suit if it caused a price increase or damages to them. If the MC had to raise the price of their contract due to this issue. The HOA may just not be interested.

The MC is it's own separate business. It does work for the HOA and often on their requested behalf. I could imagine an owner insisting on records to the point that they cause interference can certainly happen. At that point the MC would have no choice but to sue that person directly. So in the end, yes the MC can sue. If they win is another story.

Former HOA President

MatthewW4 (Arizona)
Posts: 500

Posted:

Quote:

Posted By DavidS63 on 04/21/2013 8:18 AM
Management sues homeowner for tortuous interference for having made claims against their professional liability insurance policy with respect to management's failure to provide certain official records specified in an official records inspection request. Management is claiming carrier dropped them and that the new premium quotes are significantly higher and that homeowner is responsible for these damages.

So, if I run my car into yours and you make a claim against my insurance and my carrier subsequently drops me, then I can sue because I now have to pay more for my insurance?

Tortious interference generally requires some intentional act on the part of the defendant to cause a third party to terminate a contract with the plaintiff.

I assume that previously the homeowner made a request for certain records belonging to his association that were in the possession of the MC and that the MC refused to provide at least some records, resulting in a lawsuit against the MC in which the homeowner prevailed.

Among other things, it sounds like the MC is trying to take a second bite of the apple. The original issue (refusal to provide records as required by law) has already had its day in court and the MC lost. The MC is now trying to re-open a closed case to argue that the homeowner caused it to suffer damages precisely because it lost the earlier case. I don't know why but my mind keeps hearing the phrase, "failure to state a claim upon which relief can be granted."

This is nothing more than a retaliatory SLAPP suit. If I were in the homeowner's place I would do everything in my power to see that the MC's CAM license is revoked.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

What if they were asking for the MC's records? The owner/member has the right to see the HOA records but not the MC. The MC is a seperate entity of the HOA. An owner could have reported the MC to a vendor causing them to lose a customer/vendor. That is sueable if it can be proven the person caused them to lose business or incur increase in expense to keep the business.

I watch alot of Peoples Court.... This case comes up alot when someone brings in slander. It can be sued for.

Former HOA President

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Sounds like its just a battle between the mgmt company and the homeowner.

Was the HOA involved in the original law suit?

The Mgmt company seems psychotic. You should start shopping for a new one NOW. If this is how they react to a homeowner, it's likely they will raise the HOA contract when they lose yet another lawsuit. I would start getting bids for another Mgmt company tomorrow.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Tortious interference, also known as intentional interference with contractual relations, in the common law of torts, occurs when a person intentionally damages the plaintiff's contractual or other business relationships.

Seems the management company believes someone intentionally damaged their business relationships. If I believed the same, I would do the same.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Steve

Could it be possible that the wonderful MC we all love, went to the BOD and said your Chief Complaining Officer (CCO) is "hurting" us with his "chicken$hit" lawsuit(s). Please help us control him.

The BOD (after careful deliberation and intelligent discussion....well maybe 2 of the 5 were a bit drunk.....but another story), said we cannot control the fool either, so while we will not bless your actions, you do as you feel you must do.....LOL

Just an alternative possibility.

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