CONFLICT OF INTEREST?

Recently our Legal Liaison/Treasurer had a personal legal cause against a property owner. At approximately the same time, our association had a cause against the same property owner and foreclosure proceedings were started. The problem is that our Legal Liaison's personal attorney is the same attorney retained by our HOA. Our Legal Liaison/Treasurer acted in that capacity for the HOA's cause of action. There appears to be a conflict of interest to me both for our Legal Liaison and our attorney to be involved in both causes at the same time. Am I correct?

Tim's idea makes sense to me too. "Perception" can be a huge issue in HOAs. Though usually not a requirement, generally, the Board president is the liaison with the Assoc. attorney. I'm curious about why the treasurer is in your case?

Anyhow, during the time that your HOA has the legal work going on against that same owner, I'd ask the board to remove the treasurer as liaison as soon as you can get a board meeting arranged to do so. Because of the treasurer's legal issue with that owner, I'd also request at future board meetings that the treasurer recuse her/himself on any further vote on the foreclosure matter.

I'm not in the legal profession, but it seems like that owner could create future problems for your HOA. If you are on the Board, Michelle, your must protect your association.

Michele,

In my state, when an attorney has multiple clients pursuing an action against a single party, he is required to obtain the consent of both parties. The reason for doing so is that even though they have a common defendant, their causes of action may not be identical and if one plaintiff settles with the defendant the settlement may have an ill effect on the other plaintiff's case.

In this case, where the Treasurer has a personal snit with the same owner that the board is pursuing, the attorney should not have permitted to the Treasurer to speak for the board in approving a joint representation.

I would recommend not only that the Treasurer relinquish his job as liason but I would also recommend that the board withdraw its agreement for common representation as it does appear that the association is funding the Treasurer's personal lawsuit.