How to take legal action or next step

Hello,

Here is a quick summary of the issue:

We are being overcharged by the management company for fees. I have documents proving such and asked for clarification from the manager at the meeting. The manager said he/she will get back with answers if I email the questions and will provide requested documents. Now, the manager refuses to provide answers, documents or respond to further emails. Says, he/she only responds to the president.

I had already spoken with other board members and showed them the documents and they want answers as well.

We tried to give the manager time and a chance to answer to the financial discrepancies without just jumping into legal or government action. But this is not getting us answers or our money back.

What should our next step be? We are in Florida and follow 720.

A couple board members asked if we can get the Attorney General involved. Is this an option?

Thanks.

> A couple board members asked if we can get the Attorney General involved.

The attorney general doesn't really care. He has bigger fish to fry: capital punishment, bank fraud...suing the Feds about Obamacare.

The MC ultimately answers to the board. I can understand the MC not wanting to reply to questions from ONE board member. They must answer to the entire board. Get the board on board.

Thank you for the guidance.

What if I don't get a quorum of the board at the special meeting of the board? Can we still have a meeting? or is the quorum requirements different because it is a specially called meeting?

Thanks.

Erika, how many are on your board? You say a couple of directors share your concerns, but is it the case that a majority of directors do not? Including the president? Is that why you don't think enough directors would show up to make a quorum at a special meeting?

And would this special meeting be in executive session because it's a personnel matter? FL has some pretty specific laws about meetings that you must follow. I think that Kevin of FL knows them.

This smells fishy. Fishy like something is going on between the PM and the president.

To be fair, I would not expect the PM to respond to every question posed by every board member acting without the board's authority and knowledge but you indicate that you have asked some of these questions of the PM at board meetings. If you as a board member ask a question of the PM at an open meeting and no one on the board objects then your questions take on the same weight as questions from the entire board. In the meeting before entire board, the PM said he would get that information but when out of earshot of the entire board he refuses to respond to anyone but the president. Your post implies that the president is not being responsive or cooperative, either.

Since the client is the association and not the president, the PM is, at the very least, foolish to refuse to answer to the board. I would normally expect a bit more diplomacy from a PM than to brush off a board member.

Among other things, your board should relieve the president of his duties. Appoint someone else to the position and end the possible collusion between the two parties.

Your board should also start interviewing other PM's with the goal of terminating the current contract for cause, namely the failure to provide timely reports and for charging in excess of the agreed upon fees.

Erica-

Are you saying that you asked your management company for the details of the bills and they would not provide them? I had a similar experience in that it seemed like we were being over charged. When I finally got detailed bills, it showed we were being charged for office supplies, copies, faxes, postage... above and beyond our contract price. Once I started to receive detailed bills I was able to make changes to the way we do business with them. We were not getting the details in the beginning and it did look like we were being overcharged. That was a little off topic but is that what you are missing...the details?

Oh, sorry. I do understand that even with a special meeting we still have to have a public meeting that provides proper notice to the members under Florida law.

I am not sure that is such a good idea even if legal. The PM is a vendor, not an employee, so his performance should be open for discussion for all to hear. Holding a closed executive session looks too much like a cover-up. Even if you argue that a contract is involved, this would not be a negotiation of an agreement; it is a review of the vendor's performance of a contract already in effect.

The only "employee" being discussed is the president (presumed to be a board member) and I have a hard time seeing how he is entitled to the same privilege of privacy that would be granted to a landscaper or janitor. A director is a boss "hired" by the members who have an interest in his performance and malfeasance. Employees, on the other hand, are hired by the board and serve at the board's pleasure.

Because a board normally cannot relieve a director of his seat on the board, I see no reason whatsoever to hold closed-door meetings for the rest of the board to rant about his performance. Not opposed to the rant, but the ranting should be done in front of those who elected him and those who may wish to add input of their own. Even if the rest of board unanimously hates his guts, the director stays on the board until he resigns or loses an election.

Erika

I am not nor do I play a lawyer.

I would think discussing the PM's contract/performance in Executive Session is allowable. You FLers speak up.

Typical question might be: Where in the contract did we agree to pay additional for so and so? Aske questions.

See where the chips fall.

If the BOD does not care to discuss such then you will have to win hearts and minds one at a time. Be sure you do not make any accusations until you can prove them and others agree.

Tough love, but do not make this a personal vendetta.

I am partially agreeing with Larry. In our Association, because certain Board members' "activities" have been hidden, they have stayed in office and been re-elected. If someone truly is being crooked, the homeowners need to know about it. It isn't fair to them to keep them in the dark about problems.

But Ann, it seems to me that your key word is "truly" as in if the president is truly being crooked . . .

There's no evidence whatsoever the prez is guilty of anything -- just speculation. I stick with my opinion that the board needs to disentangle fact from fiction in executive session both about the PM and about the president. It might even be a good idea to have the HOA attorney present.

If the board learns for certain that the PM and/or president have behaved illegally or improperly, THEN they can decide how to give this info to all homeowners. Again, I'd want an attorney's advice.

Also, Ann, if you & others think that directors in your HOA are are being crooked, just come out and ask hard questions at open Board meetings. (Don't think you're on your Board?)