Homeowner abusive, threatening

We have a small group of homeowners (12) and we try to follow as closely as we can the Road Agreement and Covenants filed with our deeds in 1987. This agreement spells out how to have a meeting, designating a Chairperson, Secretary and how to establish and collect road maintenance fees. We have added proxies (to establish quorums), waivers to the certified mail requirement for notification of a meeting, and a couple other things to help our group function in the current century....all changes agreed to with a majority.

We had our annual meeting and this homeowner comes in and says he has talked to his lawyer and his lawyer says he can sue our designated Treasurer for writing in the minutes that he owes 2012 maintenance fees of $300, when he feels, back in the meeting of 2012, there was not a quorum as no where in this old agreement does it say we can have proxies, nor waivers either. So the annual maintenance fee did not apply to him...........everyone else paid.

He behaves like a bully, is abusive, uses foul language, threatens various people and we don't know what we can do about it. Basically, if we don't do it his way, his lawyer says he can sue.

My questions are: Remember we reside in Michigan which has no HOA statues....or so I learned last year, maybe that has changed?
1. What are our options in dealing with this difficult person?
2. If he sues just one of us, what do we do as we have held an office representing the entire group and acted accordingly?
3. Our Agreement is old and difficult to totally adhere to for a variety of reasons, but we do our best to comply to the basic principles and spirit of the agreement. We have been told we cannot amend it without all 12 members agreeing to do so, is that true?
4.Can we dissolve this Agreement (at what cost?) and establish a new Agreement with a majority minus 1 or 2 homeowners voting to do so?
5.Any suggestions you might offer would be appreciated. Thank you so much.

Peg

I simply state: Suing your HOA is suing yourself and your neighbors... I will wait on your lawsuit...

Simply put... People who threaten legal and/or attorney actions is trying make you play their game. Don't be sucked in. They want to sue, let them. I'd just have the HOA file a counter-suit for the legal costs or expenses if they do sue.

Sometimes lawsuit prevention is more expensive and damaging than just going on and getting sued... Your HOA should be carrying insurance for this anyways...

Peggy,

This problem has a fairly simple solution.

Mr. Jackass claims he has an attorney. Send him a letter by certified mail stating that since he is now represented by counsel that it is improper for your association to have any direct contact with him and that all further communications will be in writing between his attorney and the association. This will force him to either admit that he has no counsel or will force him to spend thousands in legal fees to evade a $300 road contribution.

Common law holds that those who use a road are legally responsible for its maintenance. Whether there is a quorum at a meeting, waivers, or proxies does not alter the fact that there is a legally enforceable obligation to pay for the road maintenance. My other suggestion would be to quit screwing around and file a lawsuit against Mr. Jackass for the $300 he owes from 2012 plus whatever he has not paid since then.

If your Association is incorporated (most are, but check to be sure) corporate laws would apply.
Corporate laws typically apply to procedures within a corporation.
What do they say about the use of proxies, etc.?

See:

MI NONPROFIT CORPORATION ACT

One warning and then ejected from the meeting.
The way to do that is to recess the meeting. The owner of the property where the meeting is held, asks them to leave. If the individual refuses, the owner of the property calls the police and submits a trespassing complaint. Officer will have the individual leave on his own or with their assistance. Meeting reconvenes.

If the meeting is at a school, etc. The trespassing complaint won't work. However, the police can still be called to have them removed.

For future meetings, hire an off-duty police officer if needed.


If only threatened to sue - ignore it (but gather documentation)
If you have actually been served, Directors and Officers would be covered under the D&O insurance policy (unless you knowingly violated State statutes or governing documents). Additionally, the Association should indemnify you. The Board should contact the Associations attorney and let them handle it.


That answer will be within your document. If the document is silent on amendments, then it's likely you need 100% agreement.

Note: It may be difficult to adhere to, but many legal actions have been won or lost because of technicalities and the failure to actually adhere to the letter, as well as the spirit, of governing documents.


The answer to that would also be within your governing documents.

If it is silent, then you will need to seek a legal opinion from a local attorney versed in contract and property (as it's a private road agreement) law.