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JoshuaN3
Posts: 3
Posted:
I know this may seem like an elementary question, but I am a fairly new board member.

I discovered after many issues with our current PCAM and looking at our agreement that it looks as though they are in breach of contract. They have been sitting on a homeowner issue for "many weeks" that involves our commons area but is now impacting the backyard of a homeowner. They never let us know about it until we received an estimate on how much it would be to correct the problem.

Our agreement specifically states that the association manager would let the board know "upon discovery." Many weeks is not upon discovery. I don't want to overreact or under react, but I also don't want to be slapped with a lawsuit either.

Any ideas on how to point this out without looking like a whack job? lol

Thanks guys.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
What is a PCAM? Plus the board should be doing the work should it not? The Management company acts as a contractor to the HOA. So my questions would be what kind of relationship does your HOA have with the PCAM? Maybe a miscommunication on responsibility?

BTW: Suing your HOA is suing yourself and your neighbors. So living in fear of a lawsuit is just fear mongering. Get over it. Someone wants to sue, they are going to sue. Why waste the time, money, and energy preventing it unless it is something that should be addressed?

Former HOA President
JoshuaN3
Posts: 3
Posted:
When you have a written agreement, there should be no miscommunication on responsibility. That is what it is there for. The agreement was broken when the Professional Community Association Manager (PCAM) failed to notify the board "upon discovery" and the PCAM took it a step further by getting an estimate for the work (which the PCAM charges for), since in our contract it specifically states that any and all estimates must be approved by the board.

I am not suing. But this homeowner has a case. And none of us want that headache, for obvious reasons. You cant just "get over" your fiduciary responsibilities. While being on the board should be fun and lighthearted, you also have a responsibility.
RichardP13 (California)
Posts: 3,868
Posted:
Joshua

Have you discussed this with the rest of the Board?
JoshuaN3
Posts: 3
Posted:
Reached out, not heard back yet. Don't want to blow anything out of proportion. Not sure if I should encourage action or let it go?
DanaT (Tennessee)
Posts: 214
Posted:
Quote:
Posted By JoshuaN3 on 07/28/2016 3:28 PM
When you have a written agreement, there should be no miscommunication on responsibility. That is what it is there for. The agreement was broken when the Professional Community Association Manager (PCAM) failed to notify the board "upon discovery" and the PCAM took it a step further by getting an estimate for the work (which the PCAM charges for), since in our contract it specifically states that any and all estimates must be approved by the board.

It sounds like your PCAM has no problem acting in a very unprofessional way. It seems as if they are kissing you on the cheek, as they are stabbing you in the back. To charge you for a service that is not in their contract, is nothing less the pure thievery. Remember, if they steal from you, they are stealing from your whole community. I commend you for taking you position, as far as looking out for your community.

The first thing I would do, is fire them. Then shop for a PMC that has a good reputation as well as sound business practices.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Dana,

Do you now or have you ever served on the Board of an HOA/COA?

Do you now or have you ever served on a Committee of an HOA/COA?
TimB4 (Tennessee)
Posts: 21,061
Posted:
Joshua,

I would certainly wait for the Board to respond. It's possible that a Board members asked that quotes be obtained.

You may want to suggest that the Board instructs the PCAM to not anticipate the Boards decision when it incurs additional charges to the Association.

DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By JoshuaN3 on 07/28/2016 3:42 PM
Reached out, not heard back yet. Don't want to blow anything out of proportion. Not sure if I should encourage action or let it go?

If the board as a whole feels that there are issues with how the manager is doing their job, the board should let them know specifically what they should fix. I would give them a chance to meet your expectations rather than just canning them on the first offense.

This assumes a majority of the board is in agreement, if most of the board is satisfied with the status quo, then you might be out of luck. If you try to go it alone and tell them one thing, and other board members tell them something different, then they are getting mixed messages which will certainly make it hard to do their job.

Escaped former treasurer and director of a self managed association.
JonD1
Posts: 2,350
Posted:
Quote:
Posted By JoshuaN3 on 07/28/2016 2:46 PM
I know this may seem like an elementary question, but I am a fairly new board member.

I discovered after many issues with our current PCAM and looking at our agreement that it looks as though they are in breach of contract. They have been sitting on a homeowner issue for "many weeks" that involves our commons area but is now impacting the backyard of a homeowner. They never let us know about it until we received an estimate on how much it would be to correct the problem.

Our agreement specifically states that the association manager would let the board know "upon discovery." Many weeks is not upon discovery. I don't want to overreact or under react, but I also don't want to be slapped with a lawsuit either.

Any ideas on how to point this out without looking like a whack job? lol

Thanks guys.

Perhaps you might explain as a fairly new board member how you have had many issues with your current MC? And just what sort of issues would those be? And we're all these issues between you and the MC or was this issues YOUR BOARD had with the MC?

Just how long have you held a board position? How long has the MC been serving your property? And your determination this homeowner has the legal grounds for a lawsuit what in your mind would be those grounds? Just what does " impacting the backyard" mean?

And speaking in regards to the suggestion made that you fire the MC based on what you have described and understanding the remainder of the board has yet to offer their views that suggestion would be foolishness. And not based in reality.

I would also be interested in reading the section of your contract from which you have drawn the words " upon discovery". To provide context.

Your suggestion the MC has breached the contract would depend on whether a majority of the board agreed with you that "many weeks" versus " upon discovery" constitutes the justification for claiming the MC. Has failed to abide by the written terms.

From what you have provided to this point and the fact no one on the board has bothered to respond your view might be a stretch.

PeterG4 (Georgia)
Posts: 1
Posted:
Some of you have way too much time on your hands and take things entirely way too serious... JOND, talking to you buddy.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By DanaT on 07/28/2016 4:57 PM
Posted By JoshuaN3 on 07/28/2016 3:28 PM
When you have a written agreement, there should be no miscommunication on responsibility. That is what it is there for. The agreement was broken when the Professional Community Association Manager (PCAM) failed to notify the board "upon discovery" and the PCAM took it a step further by getting an estimate for the work (which the PCAM charges for), since in our contract it specifically states that any and all estimates must be approved by the board.


It sounds like your PCAM has no problem acting in a very unprofessional way. It seems as if they are kissing you on the cheek, as they are stabbing you in the back. To charge you for a service that is not in their contract, is nothing less the pure thievery. Remember, if they steal from you, they are stealing from your whole community. I commend you for taking you position, as far as looking out for your community.

The first thing I would do, is fire them. Then shop for a PMC that has a good reputation as well as sound business practices.

Dana

Where in the HELL did they steal one dime from the association.

You come up with wild accusations with NOTHING of substance to back up that claim.

Maybe FIRE you!
DanaT (Tennessee)
Posts: 214
Posted:
Quote:
Posted By RichardP13 on 07/28/2016 11:01 PM
Posted By DanaT on 07/28/2016 4:57 PM
Posted By JoshuaN3 on 07/28/2016 3:28 PM
When you have a written agreement, there should be no miscommunication on responsibility. That is what it is there for. The agreement was broken when the Professional Community Association Manager (PCAM) failed to notify the board "upon discovery" and the PCAM took it a step further by getting an estimate for the work (which the PCAM charges for), since in our contract it specifically states that any and all estimates must be approved by the board.


It sounds like your PCAM has no problem acting in a very unprofessional way. It seems as if they are kissing you on the cheek, as they are stabbing you in the back. To charge you for a service that is not in their contract, is nothing less the pure thievery. Remember, if they steal from you, they are stealing from your whole community. I commend you for taking you position, as far as looking out for your community.

The first thing I would do, is fire them. Then shop for a PMC that has a good reputation as well as sound business practices.


Dana

Where in the HELL did they steal one dime from the association.

You come up with wild accusations with NOTHING of substance to back up that claim.

Maybe FIRE you!

If you look at the OPs 2nd post, it clearly states:"The agreement was broken when the Professional Community Association Manager (PCAM) failed to notify the board "upon discovery" and the PCAM took it a step further by getting an estimate for the work (which the PCAM charges for), since in our contract it specifically states that any and all estimates must be approved by the board".

So, to bill a client for something that is not in the contract is, "Thievery". I wonder how many times this company has padded their UN-contracted invoices? We may never know!
JonD1
Posts: 2,350
Posted:
Quote:
Posted By PeterG4 on 07/28/2016 10:14 PM
Some of you have way too much time on your hands and take things entirely way too serious... JOND, talking to you buddy.

Not quite sure what your point might be. Perhaps you can explain in terms we might understand.

TimB4 (Tennessee)
Posts: 21,061
Posted:
Doesn't matter.

With Joshua's post count at zero, I suspect that he has resigned from the forum.
SheliaH (Indiana)
Posts: 6,964
Posted:
This is for Joshua (if he ever comes back):

Without knowing a little more about the issue, it’s hard to say if the property manager is in breach of contract or not – for questions like that, your best bet is to go to your association attorney (most of us on this site aren’t lawyers and even if we were, people usually don’t give legal advice).

For some reason, I get the feeling the homeowner with the issue has been yelling at you, demanding what will be done and when. If so, politely remind him/her decisions regarding the common area and maintenance are a BOARD decision, not just yours. If the homeowner hasn’t been told anything about what the board is doing, it’s ok to bring that up to the others and ask that the homeowner be updated immediately. As Melissa said, don’t worry about the lawsuit unless you’re served.

I understand you’re a new board member and are trying to get your feet wet, but it seems you have two issues (1) this homeowner issue (whatever that is) and (2) many (previous? current?) issues with the property manager. Let’s look at the homeowner issue first – what is the problem, what has the property manager done so far – and have you heard from the rest of the board as what should be done next? How long is “many weeks” – depending on the issue, it may take a little time to determine exactly what the problem is, and don’t forget, there are other association issues your property manager has to address. If this is a health or safety issue, I understand the urgency – otherwise, it may not kill the owner to wait a little (I’ll assume you’ve kept him/her updated on what’s happening and why? If not, that should also be fixed).

Regarding the previous/current issues with the property manager, I agree with Jon. Contrary to Peter’s opinion {which he’s entitled to}, I find the devil and the angels are all in the details and without details, it’s hard to say if someone’s in breach of a contract (besides that’s why judges were invented, to figure all that out). When you can answer those questions, you’ll have a better idea as to whether you should keep this property manager or move on.

People may yap about going to court screaming breach of contract or something else, but if they want to win, they’d better have some idea of what they’re talking about and can document it. Otherwise the other side will eat you alive in court, the judge will roll his/her eyes and throw the thing and you’ll be back at square 1. It’s strange how one or two little details can turn an issue on its head.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JonD1
Posts: 2,350
Posted:
In the real world the only time an issue of breaching a contract comes up is when one party to that contract uses this legal tool to have the contract enforced.

I have to wonder why in the world some board would be looking to bring up breach of contract UNLESS they are looking for grounds to end their relationship with this MC. You don't use a threat of enforcing a breach of contract claim as a tool to get what you want from a service provider you wish to do future business with. That accusation in most cases puts a damper on things going forward.

And the issue of "upon discovery" versus "many weeks" seems to be a bit trumped up for grounds to claim breach.

Seems like the OP is searching the fine print looking for something to hang his hat on. But with his departure we will probably never know.
DanaT (Tennessee)
Posts: 214
Posted:
Quote:
Posted By JonD1 on 07/29/2016 3:26 PM
I have to wonder why in the world some board would be looking to bring up breach of contract UNLESS they are looking for grounds to end their relationship with this MC.

I read the OPs first post as to "what can we do to keep them from billing us, when it is not in our contract, for them to do so". A breech of contract can force someone to comply or void the contract. Breech of contract is often the grounds for legal action.
JonD1
Posts: 2,350
Posted:
Based on what the OP has posted and now understanding they have decided to leave the building it takes quite an imagination to determine any real breach of contract has occurred. And the thought that what the OP described rises to the point they or this board should "fire" the MC is at best drastic and uncalled for. Not to mention probably impossible. Without having received input from the other members of this board.
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By JonD1 on 07/30/2016 3:14 PM
Based on what the OP has posted and now understanding they have decided to leave the building it takes quite an imagination to determine any real breach of contract has occurred. And the thought that what the OP described rises to the point they or this board should "fire" the MC is at best drastic and uncalled for. Not to mention probably impossible. Without having received input from the other members of this board.

Looks like the OP quit the forum

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