Michigan Road Maintenance Association

I recently purchased a home where there is a Road Maintenance Association specifically to maintain the 5 miles of private road through state land to approximately 30 homeowners.
We were a Nonprofit Corporation but the paperwork/fees weren't sent in about 10 years ago so our corporation was "dissolved". We have bylaws.
Last year (2015) the President (I don't believe there was a meeting to authorize this) hired several minors to run chainsaws to clear away trees and shrubs along the road. Subsequently, he, the president, purchased a "plow truck" after which the Board of Directors sent out letters to the membership to request $100 each to pay for the truck. We got the money and now I find that the President, who normally does the snow removal, is using this vehicle unregistered and uninsured for purposes of maintaining the roads.

I immediately contacted the President and Vice President and voiced my objection to these actions and requested they find out what liability we were being exposed to and take corrective action. I was pretty much ignored. A few months later at the annual association meeting, I brought it up again and was told that they would look into it. That was in August of 2014 and it is now April of 2015.

Upon the advise of a friend who is knowledgeable in this area I submitted my resignation as a committee member on the Board of Directors stating that I felt that the Board of Directors may have more exposure to liability than just a member.

I still don't have an answer regarding the liability question, we are uninsured, we are not incorporated and the truck is still being used without registration or insurance.

OK.... now for the question.... Is there some way I can "resign my membership" or make a legal statement so that I am not liable for any lawsuit that may be taken against the association?

Thank you in advance for any help on this.

mike

Thanks JohnB26. Unfortunately, I don't want to run.... lol I just bought the place and it was my mother's so it is very important to me.

I am in the process of getting some legal advice and also trying to convince the Board members to do something. My first line of defense is trying to get them to reinstate the corporation.

Then get some liability insurance for the Association.

My guess is that that insurance should be able to take care of chain saws and plow trucks that run over the occasional snowmobile or 4-wheeler.

Is that type of insurance available through my local homeowners insurance company or is that a special type of company?

I have read the bylaws carefully and there is nothing in them that requires us to be incorporated. I have also studied the Michigan Nonprofit Corporation law and haven't seen anything in there that requires an association to be incorporated.

Good advice on the insurance.

I just sent an email to the President of the Association "strongly" recommending that we incorporate and get insurance. I'll see how that turns out.

If I don't get an appropriate response I'll get an attorney to see what I have to do to "force" the issue. I know that will be expensive but better than loosing my property.

Thanks for you help on this.

Oh, and BTW, is there a way that I can respond to a post and still see the last response?

I dont know what the laws are in your state, but most states allow "farm vehicles" that you can use unregistered and can travel up to 50 miles to get gas/repairs/etc. As for being uninsured, if the vehicle never left the road and only plowed, I might not insure it either. Or maybe just liability.

Personally, I dont see it as a big deal.

1) In most states, you must apply for a "farm exempt" sticker in lieu of the license and registration
2) Insurance is still mandated
3) Private roads does not a farm vehicle make
4) Since these are private roads on state lands, a license plate would still probably be required
5) If it is of any help, the "president" is in the most legal jeopardy. He's the one hiring uninsured minors with chain saws and I assume he owns the plow truck.