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CfD (Virginia)
Posts: 265
Posted:
I've always been under the impression that a contract under negotiation is not made available to the membership, but after it is signed it is.

We have a situation in our HOA where our president is acknowledging a contract to perform work in our common area has been signed by him outside of an open meeting, all of the board members have not seen it, and he is refusing a request from a homeowner to see the contract.

In Virginia we have a statute that requires requests for records to be made available for inspection with in 5 days of the request. http://law.lis.virginia.gov/vacode/55-510/

In your view, is the president of our association violating state law by not making the contract available for inspection in the 5 day time frame outlined in state code?

Personally, I believe it is ridiculous that he does this before showing it to the entire board for review and approval anyway. But much of what we do in our association makes very little sense, at least to me.

I have another question about board recordings I'll pose in a different thread, but thank you for your responses.
KerryL1 (California)
Posts: 14,550
Posted:
Are you saying, CfD, that the entire board didn't have the chance to review and approve of the contract? Are such approvals required to be done in open meetings in VA? Or may approval be voted on in executive session?

Must requests to review executed contracts be made in writing in VA? Must they be addressed to a certain individual or your HOA's registered agent?
CfD (Virginia)
Posts: 265
Posted:


Yes



Board voted in an open meeting to perform work in a proposal, but the president said he would be modifying that proposal. The proposal was not the contract. He wouldn't say what the modifications were going to be, but he signed the contract without showing it to the other board members. They still have no clue (at least some of them) what the contract says.

Must requests to review executed contracts be made in writing in VA? Must they be addressed to a certain individual or your HOA's registered agent?

I made my request in writing through email to the board. The president responded saying he is "reluctant" to show it to me.
CfD (Virginia)
Posts: 265
Posted:
Yes, the board did not see or approve the contract.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By CfD on 04/13/2016 1:11 PM

Must requests to review executed contracts be made in writing in VA? Must they be addressed to a certain individual or your HOA's registered agent?

They are typically made to the Board or, if applicable, the MC/PM.

However, an individual could also make the request through the registered agent.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By CfD on 04/13/2016 12:29 PM

In Virginia we have a statute that requires requests for records to be made available for inspection with in 5 days of the request. http://law.lis.virginia.gov/vacode/55-510/

In your view, is the president of our association violating state law by not making the contract available for inspection in the 5 day time frame outlined in state code?

Executed contracts are to be made available for inspection.

Per VA § 55-510, non-executed contracts do not have to be made available (as they would be considered under negotiation).

I think the statute is clear enough

Quote:
Posted By CfD on 04/13/2016 12:29 PM

He wouldn't say what the modifications were going to be, but he signed the contract without showing it to the other board members.

In my mind, the proposal is used to request a bid.

Does your President have the authority to approve a contract on their own?

In my Association, the President is to sign the contracts but may not obligate any funds without the approval of the Board. Hence, the Board must approve the contract prior to the President signing it.

It sounds like a motion needs to be made to remove that individual from that Office.
Of course, this will require someone else to step forward and volunteer to take over that position.
KerryL1 (California)
Posts: 14,550
Posted:
I'm with you, Tim, but we know CfD isn't on the Board and doesn't seem to have much influence with it. I suppose that the board gave the prez authority to "finish" negotiating contracts, but that's a very bad policy.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By CfD on 04/13/2016 1:11 PM
Must requests to review executed contracts be made in writing in VA? Must they be addressed to a certain individual or your HOA's registered agent?

I made my request in writing through email to the board. The president responded saying he is "reluctant" to show it to me.


Having once been a licensed officer-of-the-court (aka process server), serving the corporation's registered agent is best Federal Rules of Civil Procedure also permit service on any officer of the corporation. The president is an officer so sending him notice, which he acknowledged by saying he is reluctant to comply with the statute, should be enough. However, I would recommend putting the request in writing and sending it by certified mail to the registered agent so that you have an undisputable record of making the request.

NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LarryB13 on 04/13/2016 8:41 PM
Posted By CfD on 04/13/2016 1:11 PM
Must requests to review executed contracts be made in writing in VA? Must they be addressed to a certain individual or your HOA's registered agent?

I made my request in writing through email to the board. The president responded saying he is "reluctant" to show it to me.


Having once been a licensed officer-of-the-court (aka process server), serving the corporation's registered agent is best Federal Rules of Civil Procedure also permit service on any officer of the corporation. The president is an officer so sending him notice, which he acknowledged by saying he is reluctant to comply with the statute, should be enough. However, I would recommend putting the request in writing and sending it by certified mail to the registered agent so that you have an undisputable record of making the request.


If Cf emailed it to board and Prez emailed a response, then that ought to be sufficient proof of notice.

Sikubali jukumu. Read all posts at your own risk.
CfD (Virginia)
Posts: 265
Posted:
Sound advice from the people I knew would have it, and I agree.

Going to give the board president a second chance to comply with the request and let him know I'll contact our registered agent with his reluctant reply if he doesn't.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Cf,

You don't need to contact the Registered agent, who is likely an attorney and any contact will incur expenses for the Association.

Instead, give the President a second chance citing the statute.

If they still refuse, make a complaint to the Ombudsman.
Yes, you won't get the record quickly, but it appears to be clear cut and the ombudsman will let the Association know this.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By NpS on 04/13/2016 9:17 PM
If Cf emailed it to board and Prez emailed a response, then that ought to be sufficient proof of notice.


It certainly is good enough for me but is that sufficient in the eyes of the law?
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By TimB4 on 04/14/2016 2:32 AM
You don't need to contact the Registered agent, who is likely an attorney and any contact will incur expenses for the Association.


Whether the association's agent is an attorney is not the OP's problem. If he is an attorney, it is up to him to decide whether to charge for his services. If the board is not satisfied with that arrangement then it is up to them to change it.

In the meantime the OP must make a proper demand on the association to see the records. Certified mail to the registered agent will never be challenged for sufficiency of notice.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LarryB13 on 04/14/2016 2:38 AM
Posted By NpS on 04/13/2016 9:17 PM
If Cf emailed it to board and Prez emailed a response, then that ought to be sufficient proof of notice.


It certainly is good enough for me but is that sufficient in the eyes of the law?

Why wouldn't it be? These aren't official documents being delivered. Just ordinary notice.

Sikubali jukumu. Read all posts at your own risk.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By NpS on 04/14/2016 6:07 AM
Posted By LarryB13 on 04/14/2016 2:38 AM
Posted By NpS on 04/13/2016 9:17 PM
If Cf emailed it to board and Prez emailed a response, then that ought to be sufficient proof of notice.

It certainly is good enough for me but is that sufficient in the eyes of the law?

Why wouldn't it be? These aren't official documents being delivered. Just ordinary notice.


The statute, § 55-510, requires that the notice be "written." The requesting party must also specify what he wants to examine and why.

If I were an attorney defending the board I would attack the sufficiency of an email to the president and raise the question as to whether an electronic communication allegedly sent to an officer complies with the requirement for a written notice to the association. What proof is there that the email was sent? What proof is there that the email address it was sent to is that of the president? What proof is there that the president actually received the email? What proof is there that he actually read the email? What proof is there that the response was written and sent by the president and not his 10-year-old kid?

Yes, it is a lousy defense but when that is all you have you run with it. Wear the plaintiff down so he gives up or delay until the statute of limitations runs out. Complying with the letter of the law avoids this whole line of defense.

NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LarryB13 on 04/14/2016 2:12 PM
Posted By NpS on 04/14/2016 6:07 AM
Posted By LarryB13 on 04/14/2016 2:38 AM
Posted By NpS on 04/13/2016 9:17 PM
If Cf emailed it to board and Prez emailed a response, then that ought to be sufficient proof of notice.

It certainly is good enough for me but is that sufficient in the eyes of the law?

Why wouldn't it be? These aren't official documents being delivered. Just ordinary notice.


The statute, § 55-510, requires that the notice be "written." The requesting party must also specify what he wants to examine and why.

If I were an attorney defending the board I would attack the sufficiency of an email to the president and raise the question as to whether an electronic communication allegedly sent to an officer complies with the requirement for a written notice to the association. What proof is there that the email was sent? What proof is there that the email address it was sent to is that of the president? What proof is there that the president actually received the email? What proof is there that he actually read the email? What proof is there that the response was written and sent by the president and not his 10-year-old kid?

Yes, it is a lousy defense but when that is all you have you run with it. Wear the plaintiff down so he gives up or delay until the statute of limitations runs out. Complying with the letter of the law avoids this whole line of defense.

1. An email is a writing, so it will satisfy the statute.

2. Sure, a lawyer can attack the sufficiency of the email. But if he's just being a jackass, a judge will figure that out soon enough.

3. There's a process of discovery that begins after a lawsuit is filed. If things actually get to the point of a lawsuit, then there will be ample opportunity to verify whatever needs to be verified.

4. Wouldn't worry too much about SOL because clock gets stopped when lawsuit is filed.

5. Always best to try to work things out without the threat of a lawsuit.

Sikubali jukumu. Read all posts at your own risk.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By LarryB13 on 04/14/2016 2:45 AM
Posted By TimB4 on 04/14/2016 2:32 AM
You don't need to contact the Registered agent, who is likely an attorney and any contact will incur expenses for the Association.


Whether the association's agent is an attorney is not the OP's problem. If he is an attorney, it is up to him to decide whether to charge for his services. If the board is not satisfied with that arrangement then it is up to them to change it.

In the meantime the OP must make a proper demand on the association to see the records. Certified mail to the registered agent will never be challenged for sufficiency of notice.

True.

However, lets be honest. CF will be making waves. The waves are being made because the Board isn't complying with the statutes, but that isn't the point. Expecting, like our attorney when it happened, their attorney charges for 15 min of their time to read the request and forward it to the Board, I can see their Board attempting to assess Cf for that bill (as a charge related to providing the copies).

Why instigate another issue when it can be avoided?
CfD (Virginia)
Posts: 265
Posted:
This statute would seem to address the issue of emailing a request for association records. Our association has an established email set up specifically email board members.

https://vacode.org/13.1-810/
TimB4 (Tennessee)
Posts: 21,059
Posted:
Cf,

The purpose of a certified letter is to provide proof of delivery.
The President responded. That proves delivery.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By NpS on 04/14/2016 2:57 PM

4. Wouldn't worry too much about SOL because clock gets stopped when lawsuit is filed.


Only for that particular lawsuit. If the parties drag the litigation out long enough and the court ultimately dismisses the action (say, for failure to provide proper notice), the SOL may preclude curing the defect and filing another action.

NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LarryB13 on 04/14/2016 7:46 PM
Posted By NpS on 04/14/2016 2:57 PM

4. Wouldn't worry too much about SOL because clock gets stopped when lawsuit is filed.


Only for that particular lawsuit. If the parties drag the litigation out long enough and the court ultimately dismisses the action (say, for failure to provide proper notice), the SOL may preclude curing the defect and filing another action.


Still not concerned. There are ways that people can be added to an existing lawsuit.

But Larry,

More than 98% of all lawsuits never get to trial. And in this situation, a lawsuit hasn't even been filed yet.

There's such a low chance of this ever going to trial that it doesn't make any sense to focus on such remote possibilities. It's a distraction.

Now it time for trying to reach out and talk things out.


Sikubali jukumu. Read all posts at your own risk.
CfD (Virginia)
Posts: 265
Posted:
Update on signed contract:

After correspondence with our president and board that included language suggesting perhaps our membership should be made aware that our board is not complying with the law (they have no clue), I received the signed contract for the work within the 5 day legal time frame.

KerryL1 (California)
Posts: 14,550
Posted:
So.... CfD, did it really include changes that the prez made without board approval? Care to share just what those changes are?
CfD (Virginia)
Posts: 265
Posted:
It did. It actually included a location of the work to be done and more detailed information pertaining to the work itself, but specifically left out of the contract the addition of items board members thought were necessary to complete the job correctly.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Cf,

It's always a shame when any Board doesn't want to comply with statutes.

Fortunately, you were able to get them.

Based on other recent threads started by you, I believe that your Board is simply unaware of the statutes and giving knee jerk reactions to requests.
Use this as a teachable moment for them.
CfD (Virginia)
Posts: 265
Posted:
I've been trying to teach them, as politely as possible, for years.

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