DorrinndaF (Michigan)
Posts: 17
Posts: 17
Posted:
we are currently being sued by a home owner regarding a fence issue - its complicated. Do we have a requirement to inform our insurance about the ongoing litigation?
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
Our association is being sued by a home owner
Started by DorrinndaF • 19 replies • 1861 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
A requirement, probably not.
However, read your policy. It's possible that the Insurance company will help resolve the issue. It's also possible that delays in reporting the issue could complicate coverage of the issue by the Insurance company.
Since you are being sued, it's best to consult a local attorney and/or the insurance company (if it's a liability issue).
However, read your policy. It's possible that the Insurance company will help resolve the issue. It's also possible that delays in reporting the issue could complicate coverage of the issue by the Insurance company.
Since you are being sued, it's best to consult a local attorney and/or the insurance company (if it's a liability issue).
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Be aware, since you are incorporated you have to be represented by a lawyer or a member the HOA agrees to represent them. The latter is similar to "representing yourself".
The fact is that suing your HOA is suing yourself and your neighbors. It's the consequence you must accept before moving forward in suing. (Mind you I am NOT saying one should NOT sue, just stating the CONSEQUENCE). The HOA is better off being sue. They can also file a counter-suit (without a lawyer) for any damages they may incur or have incurred. That means your HOA can respond to the lawsuit with it's own position that the member will have to pay the HOA legal expenses or any other situations where the owner may owe the HOA damages/money. (Fines may not count. That is another issue to discuss with a lawyer).
In the end, it does come out to be an insurance claim. Which is something you should talk to your insurance carrier on how much they do pay out in judgements. Keep in mind a "Million dollar" policy does NOT pay out a "million dollars". It may top out around 80 - 100K. Which means the owners/HOA would be on the hook for the difference if awarded. Plus insurance company may raise or cancel their services.
Do not think this is a "million dollar" case. Sounds more like the damages may be more along the lines of the cost of replacing/repairing a fence and legal expenses. Which a court can ONLY make one WHOLE. Plus small claims does NOT award "pain and suffering".
If your trying to avoid a lawsuit,(Which may show up on FHA forms requirments and disclosure), then find out the cost and offer that to the owner. Otherwise, let them sue and take your chances. A lawsuit does NOT have to be a scary thing. It could be thrown out of court or you all could win. Best to figure out your worst case scenario and work from there to minimize it.
The fact is that suing your HOA is suing yourself and your neighbors. It's the consequence you must accept before moving forward in suing. (Mind you I am NOT saying one should NOT sue, just stating the CONSEQUENCE). The HOA is better off being sue. They can also file a counter-suit (without a lawyer) for any damages they may incur or have incurred. That means your HOA can respond to the lawsuit with it's own position that the member will have to pay the HOA legal expenses or any other situations where the owner may owe the HOA damages/money. (Fines may not count. That is another issue to discuss with a lawyer).
In the end, it does come out to be an insurance claim. Which is something you should talk to your insurance carrier on how much they do pay out in judgements. Keep in mind a "Million dollar" policy does NOT pay out a "million dollars". It may top out around 80 - 100K. Which means the owners/HOA would be on the hook for the difference if awarded. Plus insurance company may raise or cancel their services.
Do not think this is a "million dollar" case. Sounds more like the damages may be more along the lines of the cost of replacing/repairing a fence and legal expenses. Which a court can ONLY make one WHOLE. Plus small claims does NOT award "pain and suffering".
If your trying to avoid a lawsuit,(Which may show up on FHA forms requirments and disclosure), then find out the cost and offer that to the owner. Otherwise, let them sue and take your chances. A lawsuit does NOT have to be a scary thing. It could be thrown out of court or you all could win. Best to figure out your worst case scenario and work from there to minimize it.
Former HOA President
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
I believe in CA we must inform h'owners if litigation actually has been filed against us. So, with Tim, you need to check with your HOA counsel about this. And also check with your insurance agent.
GeorgeR8 (Arizona)
Posts: 182
Posts: 182
Posted:
When we were threatened with a lawsuit the first thing our attorney said was that we had to inform our insurance company.
BobD4 (up north)
Posts: 1,002
Posts: 1,002
Posted:
Quote:
Posted By DorrinndaF on 12/13/2015 5:47 AM
we are currently being sued by a home owner regarding a fence issue - its complicated. Do we have a requirement to inform our insurance about the ongoing litigation?
we are currently being sued by a home owner regarding a fence issue - its complicated. Do we have a requirement to inform our insurance about the ongoing litigation?
Good advices above.
Even where an insurable risk has little "obvious" application to your association's contracted insurance coverage, I don't see why the association would be WORSE off by putting its insurer confidentially on written notice that 'allegations' & adverse legal claim have been received.
The policy may specifically require such else grounds to deny any triggered duty to defend or duty to indemnify.
This & other Forums show that many self-managed associations do not have skillsets or disregard Board members who competently do, or are too cheap to hire such until making a lot of critical mistakes.
". . regarding a fence issue. . " opens a wide door. An insurer's 'duty to defend' under a policy in many jurisdictions is triggered or exempted merely by the subject matter of wrongdoing alleged whether true or not; it may be independent of a duty to indemnify or underwrite some portion of awards against the insured.
It is NOT a 'fortuitous' risk if there is an attempt to 'throw something against the wall' with Plan B being "Don't worry; our insurer will defend us & indemnify us if we are wrong, no matter what". Non-fortuitous risks agreed by the insurer, had better be specifically contracted within a policy or an insurer may only defend or maybe even refuse to defend in some jurisdictions.
The wording of the policy & its coverage is something the association needs to understand with competent legal advice.
PitA
Posts: 1,416
Posts: 1,416
Posted:
Quote:
Posted By BobD4 on 12/13/2015 8:15 AM
Posted By DorrinndaF on 12/13/2015 5:47 AM
we are currently being sued by a home owner regarding a fence issue - its complicated. Do we have a requirement to inform our insurance about the ongoing litigation?
we are currently being sued by a home owner regarding a fence issue - its complicated. Do we have a requirement to inform our insurance about the ongoing litigation?
The wording of the policy & its coverage is something the association needs to understand with competent legal advice.
Said advice costs money, you know us old folk, "we may not be here tomorrow".
BobD4 (up north)
Posts: 1,002
Posts: 1,002
Posted:
Good point tongue in cheek : Said advice costs money, you know us old folk, "we may not be here tomorrow".
As also heard : "If you think its expensive to hire a professional, wait until after you hire an amateur. . ."
As also heard : "If you think its expensive to hire a professional, wait until after you hire an amateur. . ."
NpS (Pennsylvania)
Posts: 4,216
Posts: 4,216
Posted:
Quote:
Posted By GeorgeR8 on 12/13/2015 8:00 AM
When we were threatened with a lawsuit the first thing our attorney said was that we had to inform our insurance company.
When we were threatened with a lawsuit the first thing our attorney said was that we had to inform our insurance company.
Threats of lawsuits are meaningless - letters from a homeowner's lawyer are a different matter entirely. Insurance company should get copy of letter.
Sikubali jukumu. Read all posts at your own risk.
PitA
Posts: 1,416
Posts: 1,416
Posted:
BobD,
and: Good, clean oats cost a bit more ........
Merry Christ Mass
Happy Holidays
and: Good, clean oats cost a bit more ........
Merry Christ Mass
Happy Holidays
BobD4 (up north)
Posts: 1,002
Posts: 1,002
Posted:
& merry Xmas to all from the Great Igloo
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By NpS on 12/13/2015 10:54 AM
Posted By GeorgeR8 on 12/13/2015 8:00 AM
When we were threatened with a lawsuit the first thing our attorney said was that we had to inform our insurance company.
When we were threatened with a lawsuit the first thing our attorney said was that we had to inform our insurance company.
Threats of lawsuits are meaningless - letters from a homeowner's lawyer are a different matter entirely. Insurance company should get copy of letter.
I agree. Disregard threats. My answer to a I will sue you threat is see you in court.
LarryB13 (Arizona)
Posts: 4,099
Posts: 4,099
Posted:
Quote:
Posted By DorrinndaF on 12/13/2015 5:47 AM
we are currently being sued by a home owner regarding a fence issue - its complicated. Do we have a requirement to inform our insurance about the ongoing litigation?
we are currently being sued by a home owner regarding a fence issue - its complicated. Do we have a requirement to inform our insurance about the ongoing litigation?
When you say "we are currently being sued," do you mean the homeowner or his attorney has filed a complaint with a court and served process upon the association? If so, who is representing your association in court? If it is your attorney he should be able to advise whether to notify your insurer.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Per Larry and my above, Dorrinnda: Are you actually being sued?????????
DaleB (Arizona)
Posts: 12
Posts: 12
Posted:
Of course you have to inform your insurance if you are actually being sued. How else do you get coverage?
GlenL (Ohio)
Posts: 5,491
Posts: 5,491
Posted:
Quote:
Posted By PitA on 12/13/2015 11:25 AM
Good, clean oats cost a bit more ........
Good, clean oats cost a bit more ........
Darn you Pita, now I've got that blasted song stuck in my head now.
https://www.youtube.com/watch?v=EU2CKQQr90E
Studies show that 5 out of 4 people have problems with fractions
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Quote:
Posted By GlenL on 12/15/2015 4:25 PM
now I've got that blasted song stuck in my head now.
https://www.youtube.com/watch?v=EU2CKQQr90E
now I've got that blasted song stuck in my head now.
https://www.youtube.com/watch?v=EU2CKQQr90E
So you had to share so it gets stuck in everyone's head.
Thanks
LarryB13 (Arizona)
Posts: 4,099
Posts: 4,099
Posted:
Quote:
Posted By TimB4 on 12/15/2015 4:31 PM
Posted By GlenL on 12/15/2015 4:25 PM
now I've got that blasted song stuck in my head now.
https://www.youtube.com/watch?v=EU2CKQQr90E
now I've got that blasted song stuck in my head now.
https://www.youtube.com/watch?v=EU2CKQQr90E
So you had to share so it gets stuck in everyone's head.
Damn you people! I was just curious as to what song it was so I followed the link just so I could read the title. I did not listen to even a single note but I can hear it playing on my mental jukebox.
Thanks a lot!
PitA
Posts: 1,416
Posts: 1,416
Posted:
Quote:
Posted By GlenL on 12/15/2015 4:25 PM
Posted By PitA on 12/13/2015 11:25 AM
Good, clean oats cost a bit more ........
Good, clean oats cost a bit more ........
Darn you Pita, now I've got that blasted song stuck in my head now.
https://www.youtube.com/watch?v=EU2CKQQr90E
Not referencing a song, but a quote I once saw in a small heating specialty shop-front.
paraphrased:
Oats which have passed through the Donkey are quite inexpensive. If, however, you want nice new clean oats ......
PitA
Posts: 1,416
Posts: 1,416
Posted:
ps.
really cool tune
never heard it before
thanx for the link
really cool tune
never heard it before
thanx for the link
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here