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MichaelB32 (California)
Posts: 141
Posted:
Can an attorney require a Board to continue on with a litigation once he files a restraining order and starts a case?. Our HOA received a judgement against a homeowner for a $105,000 for legal fees. No damages. The ruling was because “they did not asked for permission to do remodeling”.

Recently I walk the complex and point out all member doing remodeling that “have not asked for permission”. It seems that it is a very weak argument and more of a nuisance defense than justify $105,000 expense.

Our HOA has $108,000 deficit in operating expenses. Most of this is attributed to legal fees. Our HOA only brings on a good day $79k a month from assessments. Even after the judgement, the attorney is now spending more HOA fund trying to collect the judgements with things like“Debt Examples” and investigations.

I have been told that the HOA has no choice but to continue more litigation even though they have a lean. The Board still cannot talk to the homeowners and all of this seems like an open checkbook for our legal council.

Michael Barto
[email protected]
JonD1
Posts: 2,350
Posted:
So to clarify your board took legal action against a home owner and was awarded a judgement in excess of $100,000?

Now you seem to want to point out others are acting in the same manner the owner who was sued has behaved? And for what purpose if this matter has been settled?

You also seem to question the lawyer now working to collect on this judgement? Again, having a lien accomplishes little it you can't or won't collect.

What would you wish the board to do? And in regards to this lien?

Are you involved directly in this matter in any way?

My view if you file a complaint, prevail in court the next step in the process would be to collect.
What would be your next recommended step instead?

Not sure what you are suggesting the board do?????????
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By MichaelB32 on 08/27/2016 9:30 AM
Can an attorney require a Board to continue on with a litigation once he files a restraining order and starts a case?. Our HOA received a judgement against a homeowner for a $105,000 for legal fees. No damages. The ruling was because “they did not asked for permission to do remodeling”.

Recently I walk the complex and point out all member doing remodeling that “have not asked for permission”. It seems that it is a very weak argument and more of a nuisance defense than justify $105,000 expense.

Our HOA has $108,000 deficit in operating expenses. Most of this is attributed to legal fees. Our HOA only brings on a good day $79k a month from assessments. Even after the judgement, the attorney is now spending more HOA fund trying to collect the judgements with things like“Debt Examples” and investigations.

I have been told that the HOA has no choice but to continue more litigation even though they have a lean. The Board still cannot talk to the homeowners and all of this seems like an open checkbook for our legal council.

The board has the legal right to terminate this attorney at any time. That the HOA is in the middle of litigation with the courts is irrelevant. That this attorney represents the HOA at present in this litigation is irrelevant.

This attorney has no legal right to tell the board it has to do anything. All an attorney can do is recommend. If the attorney's client is not following the attorney's recommendations, then generally, the attorney can only terminate his or her relationship with the client.

If the HOA owes this attorney money, pay him. After terminating this attorney, the board should get a new attorney to withdraw these cases and so on from the court. This should not cost much. Or it's possible (even likely) the cases can be ignored by all parties and after a certain amount of time, the court will close out the case.

I agree that, if the HOA has a judgment, then a lien is appropriate and the least expensive way to collect money a member owes.

I believe that today, many attorneys unlawfully protract litigation to enrich themselves. It's a dog-eat-dog world out there with them. Many-to-most recent law school graduates cannot find employment in the law.
JonD1
Posts: 2,350
Posted:
Quote:
Posted By AugustinD on 08/27/2016 10:13 AM
Posted By MichaelB32 on 08/27/2016 9:30 AM
Can an attorney require a Board to continue on with a litigation once he files a restraining order and starts a case?. Our HOA received a judgement against a homeowner for a $105,000 for legal fees. No damages. The ruling was because “they did not asked for permission to do remodeling”.

Recently I walk the complex and point out all member doing remodeling that “have not asked for permission”. It seems that it is a very weak argument and more of a nuisance defense than justify $105,000 expense.

Our HOA has $108,000 deficit in operating expenses. Most of this is attributed to legal fees. Our HOA only brings on a good day $79k a month from assessments. Even after the judgement, the attorney is now spending more HOA fund trying to collect the judgements with things like“Debt Examples” and investigations.

I have been told that the HOA has no choice but to continue more litigation even though they have a lean. The Board still cannot talk to the homeowners and all of this seems like an open checkbook for our legal council.


The board has the legal right to terminate this attorney at any time. That the HOA is in the middle of litigation with the courts is irrelevant. That this attorney represents the HOA at present in this litigation is irrelevant.

This attorney has no legal right to tell the board it has to do anything. All an attorney can do is
recommend. If the attorney's client is not following the attorney's recommendations, then generally, the attorney can only terminate his or her relationship with the client.

If the HOA owes this attorney money, pay him. After terminating this attorney, the board should get a new attorney to withdraw these cases and so on from the court. This should not cost much. Or it's possible (even likely) the cases can be ignored by all parties and after a certain amount of time, the court will close out the case.

I agree that, if the HOA has a judgment, then a lien is appropriate and the least expensive way to collect money a member owes.

I believe that today, many attorneys unlawfully protract litigation to enrich themselves. It's a dog-eat-dog world out there with them. Many-to-most recent law school graduates cannot find employment in the law.

Seems you are providing many of your own details.

Since the OP has no way of discussing this matter with the board does the notion the board is being forced come in?

And since the OP states the HOA has been awarded a judgement why would they now withdraw any case or part of a case? And why for God's sake would the HOA ignore a $100,000+ judgement in THEIR favor?

Having a lien does not ensure or promote collection in some cases. The next step would be collection actions which can take several forms.

The litigation in this case as described by the OP is concluded. My guess the OP has no real understanding of what took place, why this ened in litigation or the motivation of the board atr this point. "I was told" does not serve as having knowledge of the details.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
This is one of those cases of tossing money to collect money... Your HOA has pretty much dug itself into a rabbit hole chase. Unfortunately, I have to agree with the lawyer on some aspects of this. Not that I want to but truly if you want to collect on a certain timeline, your HOA's going to have to pay up. A lien can last until they sell the home. Which if they are remodeling the home, could mean some sufficient time before that happens.

Your HOA either needs to take a look at it's collection options before blindly letting the attorney run the show. An attorney will tell you that they will do whatever you want them to do. The problem is they most likely are telling you what they want you to do. The HOA needs to say "wait a minute what are our options then we will pay you attorney to do that". I'd look into those and utilize the attorney to do those.

That is how I treated our lawyers. Simply as tools for our legal needs. Of course, it's a catch 22 on that. Since many HOA's don't know their options except by consulting an attorney. However, atleast you will have options to discuss to decide the best route you want the lawyer to proceed with.

Former HOA President
TimB4 (Tennessee)
Posts: 21,059
Posted:
Michael,

The HOA has a debt due them in excess of $100,000.

In my opinion, it would be negligent for a Board not to collect that debt (either by the individual voluntarily paying, foreclosing on the lien and/or garnishing wages/bank accounts. Foreclosing the lien or garnishment typically requires court orders which require attorneys to represent you.

JonD1
Posts: 2,350
Posted:
If the $100,000 judgement was in fact for legal fees that would suggest the board has already paid out that amount to the lawyer.

Now my guess there was quite a bit more included in this decision. The OP either has no knowledge, has not read the decision, or simply chooses to focus on the monetary judgement. The purpose of going to court was certainly NOT to recoup your legal costs. The fact the court awarded a judgement suggests the HOA prevailed in this legal matter.

So if the board laid out this money to pursue this matter why would they NOT now move to recoup this money from the judgement? Stopping collections or allowing the judgement to sit uncollected for God knows how long would be foolishness.

You could move to attach property, assets, bank accounts, salary, rents, and each would require investigation and research. This is simp,y part of the process.

My guess the lawyer is not demanding the board continue. And being told they have no choice other than to pursue this would be sound advice in my view.

Why bother filing an action if you intend not to collect?

My suggestion the OP should perhaps remain patient and consider the possibility the board acted in the property's best interests. Evidently, the court felt they had legal grounds to file suit.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By JonD1 on 08/27/2016 10:34 AM
Posted By AugustinD on 08/27/2016 10:13 AM
Posted By MichaelB32 on 08/27/2016 9:30 AM
Can an attorney require a Board to continue on with a litigation once he files a restraining order and starts a case?. Our HOA received a judgement against a homeowner for a $105,000 for legal fees. No damages. The ruling was because “they did not asked for permission to do remodeling”.

Recently I walk the complex and point out all member doing remodeling that “have not asked for permission”. It seems that it is a very weak argument and more of a nuisance defense than justify $105,000 expense.

Our HOA has $108,000 deficit in operating expenses. Most of this is attributed to legal fees. Our HOA only brings on a good day $79k a month from assessments. Even after the judgement, the attorney is now spending more HOA fund trying to collect the judgements with things like“Debt Examples” and investigations.

I have been told that the HOA has no choice but to continue more litigation even though they have a lean. The Board still cannot talk to the homeowners and all of this seems like an open checkbook for our legal council.


The board has the legal right to terminate this attorney at any time. That the HOA is in the middle of litigation with the courts is irrelevant. That this attorney represents the HOA at present in this litigation is irrelevant.

This attorney has no legal right to tell the board it has to do anything. All an attorney can do is
recommend. If the attorney's client is not following the attorney's recommendations, then generally, the attorney can only terminate his or her relationship with the client.

If the HOA owes this attorney money, pay him. After terminating this attorney, the board should get a new attorney to withdraw these cases and so on from the court. This should not cost much. Or it's possible (even likely) the cases can be ignored by all parties and after a certain amount of time, the court will close out the case.

I agree that, if the HOA has a judgment, then a lien is appropriate and the least expensive way to collect money a member owes.

I believe that today, many attorneys unlawfully protract litigation to enrich themselves. It's a dog-eat-dog world out there with them. Many-to-most recent law school graduates cannot find employment in the law.

[snip]
since the OP states the HOA has been awarded a judgement why would they now withdraw any case or part of a case? And why for God's sake would the HOA ignore a $100,000+ judgement in THEIR favor?

Having a lien does not ensure or promote collection in some cases. The next step would be collection actions which can take several forms.

The litigation in this case as described by the OP is concluded. My guess the OP has no real understanding of what took place, why this ened in litigation or the motivation of the board atr this point. "I was told" does not serve as having knowledge of the details.

My meaning was not to somehow withdraw this court judgment. It appears that there are some details that the attorney claims he needs to address. E.g. Michael says a restraining order figures into this somehow. The HOA is still in the middle of something, it appears. The point is that the HOA can terminate this attorney at any time, ensuring that the attorney is paid what he is owed.

The other question Michael raised seems to be that, once a HOA has a judgment, how does one collect on it? First, the HOA does not have to use the attorney who won the judgment to collect on the judgement. Second, the issue of how to collect on debts owed a HOA is discussed here often. Some HOAs use collection agencies (expensive, in my experience as a director); some use attorneys who specialize in collections ((less expensive, in my experience as a director); and some simply leave a lien on a property, with the amount owed to be collected when the house is sold yada. The lien is super cheap. Which option to choose will depend on the HOA's needs, as far as I am concerned.

I cannot tell if Michael is on the Board or not.
LindaS27 (Colorado)
Posts: 236
Posted:
Michael stated: "Our HOA received a judgement against a homeowner for a $105,000 for legal fees. No damages. The ruling was because “they did not asked for permission to do remodeling”.

$105,000 for legal fees for a case like this???

Beware of attorneys!

They cause more problems than they solve.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:

$105,000 for legal fees for a case like this???

We spent over $2,000 for a simple collections and it would have been drastically more had it gone into court (as a court case was filed).

Therefore, depending on how the individual who was in violation responded, the appeals, etc. It wouldn't be unreasonable to see $105K in legal costs. Keep in mind that if those were the costs the court awarded, the actual legal fees were probably higher.
LindaS27 (Colorado)
Posts: 236
Posted:
$105,000 still sounds like a lot to me.

If the attorney charged $300/hr, he would have had to work 320 hours (40 hours/week for 8 weeks) to earn $96,000
That still leaves allows another $9,000 for other expenses/costs.

Don't think so!
TimB4 (Tennessee)
Posts: 21,059
Posted:
Well, lets say it was 1 partner, 2 associates, 3 paralegals all charging different rates.
Court fees, courier fees, administrative assistants (yep they charge for them too).

Legal challenge lasts 8-12 months.

It can easily add up.
hence the reason to consider taking legal action as a last resort.
LindaS27 (Colorado)
Posts: 236
Posted:
Tim, my point exactly!

Paralegals and administrative assistants don't get $300/hr.

And even if the case went on for 8-12 months, the attorneys (or whoever) didn't work on it 40 hours/week.
Most of the time the attorneys were working on other cases - probably double billing for their time.

Reason to use attorneys only when absolutely necessary - but check out other options first.

LindaS27 (Colorado)
Posts: 236
Posted:
Tim, my point exactly!

Paralegals and administrative assistants don't get $300/hr.

And even if the case went on for 8-12 months, the attorneys (or whoever) didn't work on it 40 hours/week.
Most of the time the attorneys were working on other cases - probably double billing for their time.

Reason to use attorneys only when absolutely necessary - but check out other options first.

JonD1
Posts: 2,350
Posted:
As we have no details as to the cause or course of this case discussing whether the $100,000+ in legal fees is reasonable or not seems like a waste of time.

Yes, going through a Supreme Court action with motions, delays, decisions and then possibly appeals it is not a sign of "double billing" or "padding hours" to reach the $100,000 mark. Nor is it any basis to suggest in this case some form of abuse or misuse took place.

If the OP is correct and the HOA was awarded legal fees seems the court ruled in their favor. What else was included in the court's decision would provide necessary information to judge the case, the board's handling and the lawyer's performance.

Having gone through several lawsuits while serving on our board the $100,000 mark is not far fetched.

I have to ask Linda just how many HOA lawsuits have you been involved with? How many courts appearances have you taken part in? How many invoices for legal services have you reviewed to determine when abuse has occurred?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By LindaS27 on 08/28/2016 11:58 AM

Paralegals and administrative assistants don't get $300/hr.

Linda,

Costs vary by area.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By MichaelB32 on 08/27/2016 9:30 AM
Can an attorney require a Board to continue on with a litigation once he files a restraining order and starts a case?.


If the attorney undertook the litigation on a contingency basis, the board may have little control over what happens. You need to find out the details of the contract between the attorney and the association. If the contract is for contingency, the lawyer will have near-total control over how the case is handled.

LindaS27 (Colorado)
Posts: 236
Posted:
Quote:
Posted By JonD1 on 08/28/2016 1:06 PM
I have to ask Linda just how many HOA lawsuits have you been involved with? How many courts appearances have you taken part in? How many invoices for legal services have you reviewed to determine when abuse has occurred?

Jon, you're right I don't have much experience with HOA lawsuits and shouldn't have commented on this post. My only experiences haven't been good so I come to the issues with a bias.

First experience - 2000 - my basement was flooded by the association's sprinkler head breaking next to my house. Had to go to several board meetings as the board kept finding things to check out before making payment to me. Long, long story but after the attorneys got involved, the only way I was going to get reimbursed was by taking the association to court. I let it go - leaving me with several thousand dollars worth of damages to my property. These many board meetings I attended led to my discovery that the board minutes were sanitized, the financials were misstated, monies were missing from a specific reserve account, and homeowners were being lied to consistently - agreed to by the MC and attorneys.

Second experience - 2001 - same rogue board attempted to have our declaration amended giving them a lot more power, etc. The homeowners voted against that amendment. It should have been left there. But no, the same law firm (as in #1)helped the board take the homeowners to court to get the amendment passed that way. The homeowners won for two reasons:
1)the homeowners had enough written objections to stop the petition from being authorized by the court.
2)MOST important: even if the homeowners hadn't gathered enough objections to stop the petition, the judge ruled the case should be dismissed based on a specific conflict between our declaration and the statute permitting the petition in the first place.
The attorneys (who helped write the CCIOA statutes) didn't even know the law - they made a HUGE error in advising the board to take the homeowners to court. BUT did they refund the HOA's money for their stupidity? NO - We were out big $$$ because of attorney error.

Third experience - 2004 - Nearly a year after the new MC took over, I received a letter saying I hadn't made my(one)dues payment.
Didn't ring true, so I immediately checked my records - every payment had been made! When I called the MC to find out which month they were talking about, I couldn't get a straight answer. I requested a copy of my account ledger (several times) and couldn't get it - the MC stating that "the records were in a big mess due to the transition from the previous MC and would have to be located." I was assured that no further late charges would be added until they could resolve this issue. They not only added more charges, they turned my account over to the attorneys for collection, who added their additional charges. The attorney's calculations were wrong and when I pointed this out, they amended their initial demand with another that had a whole new set of new errors. Even then, no one could state which month hadn't been paid. Another long story but in the end, it was the MC error in the first place, followed by more errors by the attorneys.

I could go on. Point is our HOA is paying good money to companies that hold themselves out to be "professionals" and they screw up over and over again. No refunds on our fees and no apologies for all the stress they put homeowners through.

Most homeowners don't have the time to check things out or just don't care.

AugustinD
Posts: 5,144
Posted:
LindaS27, what horrific stories. Please keep posting such anecdotes, both legal and otherwise. My HOA's attorney is pulling nonsense similar to what you saw back then. It helps to know there are bad and good HOA attorneys, and one should always question a HOA attorney's actions that fail the common sense test.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By LarryB13 on 08/29/2016 7:10 AM
Posted By MichaelB32 on 08/27/2016 9:30 AM
Can an attorney require a Board to continue on with a litigation once he files a restraining order and starts a case?.


If the contract is for contingency, the lawyer will have near-total control over how the case is handled.

I do not think so. A number of sites on the net say that the dismissed (on contingency) attorney is paid from whatever the replacement attorney recovers.

The law does not require clients to stick with attorneys that the clients feel are handling the case poorly.
LindaS27 (Colorado)
Posts: 236
Posted:
Quote:
Posted By AugustinD on 08/29/2016 10:46 AM
LindaS27, what horrific stories. Please keep posting such anecdotes, both legal and otherwise. My HOA's attorney is pulling nonsense similar to what you saw back then. It helps to know there are bad and good HOA attorneys, and one should always question a HOA attorney's actions that fail the common sense test.

Augustin,

If only that 2000 board had done the right thing and reimbursed me for my basement flooding, I wouldn't have kept going to the meetings.
At the time (I was on the ACC committee) the board didn't want anyone to be at their meetings - even committee members. They expected the committee chair to give their reports and then leave. That was the only committee we had.

After that 2001 court fiasco, more owners got involved and we now have several committees - all to the betterment of our HOA.
More volunteers lessen the load. And more eyes on rogue boards prevent an untold number of things.
JonD1
Posts: 2,350
Posted:
Quote:
Posted By LindaS27 on 08/29/2016 8:22 AM
Posted By JonD1 on 08/28/2016 1:06 PM
I have to ask Linda just how many HOA lawsuits have you been involved with? How many courts appearances have you taken part in? How many invoices for legal services have you reviewed to determine when abuse has occurred?


Jon, you're right I don't have much experience with HOA lawsuits and shouldn't have commented on this post. My only experiences haven't been good so I come to the issues with a bias.

First experience - 2000 - my basement was flooded by the association's sprinkler head breaking next to my house. Had to go to several board meetings as the board kept finding things to check out before making payment to me. Long, long story but after the attorneys got involved, the only way I was going to get reimbursed was by taking the association to court. I let it go - leaving me with several thousand dollars worth of damages to my property. These many board meetings I attended led to my discovery that the board minutes were sanitized, the financials were misstated, monies were missing from a specific reserve account, and homeowners were being lied to consistently - agreed to by the MC and attorneys.

Second experience - 2001 - same rogue board attempted to have our declaration amended giving them a lot more power, etc. The homeowners voted against that amendment. It should have been left there. But no, the same law firm (as in #1)helped the board take the homeowners to court to get the amendment passed that way. The homeowners won for two reasons:
1)the homeowners had enough written objections to stop the petition from being authorized by the court.
2)MOST important: even if the homeowners hadn't gathered enough objections to stop the petition, the judge ruled the case should be dismissed based on a specific conflict between our declaration and the statute permitting the petition in the first place.
The attorneys (who helped write the CCIOA statutes) didn't even know the law - they made a HUGE error in advising the board to take the homeowners to court. BUT did they refund the HOA's money for their stupidity? NO - We were out big $$$ because of attorney error.

Third experience - 2004 - Nearly a year after the new MC took over, I received a letter saying I hadn't made my(one)dues payment.
Didn't ring true, so I immediately checked my records - every payment had been made! When I called the MC to find out which month they were talking about, I couldn't get a straight answer. I requested a copy of my account ledger (several times) and couldn't get it - the MC stating that "the records were in a big mess due to the transition from the previous MC and would have to be located." I was assured that no further late charges would be added until they could resolve this issue. They not only added more charges, they turned my account over to the attorneys for collection, who added their additional charges. The attorney's calculations were wrong and when I pointed this out, they amended their initial demand with another that had a whole new set of new errors. Even then, no one could state which month hadn't been paid. Another long story but in the end, it was the MC error in the first place, followed by more errors by the attorneys.

I could go on. Point is our HOA is paying good money to companies that hold themselves out to be "professionals" and they screw up over and over again. No refunds on our fees and no apologies for all the stress they put homeowners through.

Most homeowners don't have the time to check things out or just don't care.


I am sorry for your troubles. Certainly explains the bad taste you have in your mouth for lawyers and HOA boards.
Are there bad boards? To be sure YES! Do they operate in a vacuum free from oversight? Well in many cases yes the owners simply give up their
ability to verify whether the board is acting in anywhere close to a responsible way.

Was this group of misfits removed? When you have a board suing the homeowners to force amendments to the documents my view long past their time to leave or be thrown out. If the board members are crooked having committees to oversee them is a bandaid. Removing them is the cure.
As suggested you have both good and bad in every area. If the owners allow the board to control everything absolutely you can see problems. If the board gives free rein to either the MC or perhaps the lawyer some people will act in a self-serving manner.
My bottom line is in the end when you get down to where the rubber hits the road the owners hold the cards. They vote to elect board members and they can act tom remove them. If the majority of owners take a less than active role this leaves fertile ground for abuse, misuse, and undesirable behavior.
In the end only the owners can clean house, establish new leadership and take control back. Does that require work, effort, time and in some cases money? You had better believe it!
Sorry for your troubles. Hopefully, someone put their foot up your past board's behind and showed them all the door. Best of luck in the future.
LindaS27 (Colorado)
Posts: 236
Posted:
Jon - Thanks for your wishes.

Unfortunately, the reason I have found this site (last summer) is because we have another "out of control board"

Back in 2001, the entire board was replaced within a couple of months. But because of their bad management and wasteful spending, the new board had to ask for a large dues increase along with a special assessment. The owners approved both because they cared and didn't want to see the community fall apart. After a lot of deferred maintenance was taken care of, both the MC and attorneys were fired.

The new board that volunteered in 2001 didn't have "special agendas" like the prior board and only wanted to make our community better. This same board (for the most part)stayed in place until mid 2013. Things did get a lot better - more transparency, a lot of committees added, a special day for everyone who wanted to pitch in and do some clean-up around the clubhouse and lake, etc. And it helped that the board went through the 2001 fiasco and knew that the MC and attorneys were not to be given free reign.

The only issue I had with that board was they didn't want to look into the monies that went missing from a "restricted reserve" account.
They said "right or wrong, decisions were made and the money has been spent" There was a question of where "payback" money might come from noting that the HOA is not a revenue generating entity. I can understand that they didn't want to lay blame on past board/s but disagree with the "right or wrong" description. There was no "right" about it. The MC had a fiduciary duty to apply our money correctly and didn't.

Then in 2013, there was a group that had "special agendas" and wanted to make some changes - which have mostly hurt the HOA. A small group of owners didn't like a lot of these changes, but let it go allowing this new board time to settle in and find their way. But their way is ignoring our governing documents along with state laws. They have spent over $100K in the last few months that was not in the budget nor approved by the homeowners. And they are attempting to amend the declaration giving themselves a lot more power.

We would like to recall them before they do any more damage.

LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By AugustinD on 08/29/2016 10:54 AM
Posted By LarryB13 on 08/29/2016 7:10 AM
Posted By MichaelB32 on 08/27/2016 9:30 AM
Can an attorney require a Board to continue on with a litigation once he files a restraining order and starts a case?.

If the contract is for contingency, the lawyer will have near-total control over how the case is handled.

I do not think so. A number of sites on the net say that the dismissed (on contingency) attorney is paid from whatever the replacement attorney recovers.


I have no personal experience with contingency contracts but one of our regulars posted the contract her association had with an attorney who handled their construction defect lawsuit on a contingency. The contract put the lawyer in complete charge of the case. He was the one investing his time and money in pursuing the association's lawsuit and it forbade the association from making any deals without the attorney's express consent.

In this case, the OP does not seem to know too much about what the attorneys are doing or have done. Knowing what kind of contract the association has with its attorney is a good place to start. The full details would be even better. If there is a contingency contract then the lawyer is going to collect his fees from the association if the association changes its mind about the litigation.


Quote:

The law does not require clients to stick with attorneys that the clients feel are handling the case poorly.


What law would that be? I know of no such law in my state. If an attorney bungles a case his client may sue for malpractice but the burden of proof is on the client.

AugustinD
Posts: 5,144
Posted:
Quote:
Posted By LarryB13 on 08/29/2016 1:08 PM

I have no personal experience with contingency contracts but one of our regulars posted the contract her association had with an attorney who handled their construction defect lawsuit on a contingency. The contract put the lawyer in complete charge of the case. He was the one investing his time and money in pursuing the association's lawsuit and it forbade the association from making any deals without the attorney's express consent.

In this case, the OP does not seem to know too much about what the attorneys are doing or have done. Knowing what kind of contract the association has with its attorney is a good place to start. The full details would be even better. If there is a contingency contract then the lawyer is going to collect his fees from the association if the association changes its mind about the litigation.


Quote:

The law does not require clients to stick with attorneys that the clients feel are handling the case poorly.


What law would that be? I know of no such law in my state. If an attorney bungles a case his client may sue for malpractice but the burden of proof is on the client.


I think what you are trying to say is that, where a contract exists, then termination happens either per the terms of the contract, or it happens in violation of the terms of the contract. When termination is not per the terms of the contract, then sure, the attorney can sue for breach of contract.

Else an attorney contracted for a given rate per hour, with no other terms, may be fired at will.

The law on this is contract law.

When are contracts between attorneys and clients most likely to occur? I imagine in the rare cases where the attorney is paid nothing or at most, a small retainer, and the attorney's contract sets him or her up to receive a portion of anything won from the defendant.

Clients changing attorneys is commonplace. At my former HOA, a member brought suit against the HOA in mid-2013. By mid-2015, the plaintiff was on his fourth attorney. This was a lawsuit where the plaintiff prevailed to the tune of about $8000 gross.

I really do not want to argue with you. I am sticking with my experience that if a client does not like what an attorney is doing, then the client may fire the attorney per the terms of the contract. Generally the only terms are that the attorney be paid for the hours of work put in up to the date of firing. I am fine with your not believing me.

MichaelB32 (California)
Posts: 141
Posted:
First, I am not a current Board member. But I have been a Board member. I am the Spokesperson for the Architectural Committee and we would have approved this homeowners remodeling project since they had permits from the City and it only affected the inside of their unit. The Board has stated that they continued this law suit because the member would not back down. When ask to give an example, they stated that was Executive Session Privilege--which mean they did not have any. This homeowner tried so many times to work with them it is unreal. Bu the attorney was always in the way. The homeowner is in the process of filing bankruptcy which will clear the lean and our HOA really looses. The Board should of figured if the homeowner represented themselves, they probably did not have any money for legal costs. This homeowner now wants to run for the Board and will probably get elected. With over a $120k deficit in our operating funds contributed by the legal cost of this judgement for " not asked for permission", the Board popularity with the members when they raise the dues may be a riot.

But these Board members I know. They are good people. I do not think they thought this through and are more interested in saving face. These attorneys priority was not our HOA, but just their now pockets. Our Board had too many "Secret Meeting". No disclose to the member when the costing were going up. Our Property Management said nothing. Just one day our HOA was in the Red. So then they just keep spending money. "We had no choice, since the previous board started it".

This litigation all started because the neighbor down stairs had his attorney send a complaint letter to our HOA. If the HOA did not do something about this homeowner , he would sue the HOA. This homeowner had not yet moved in. The homeowner was just doing construction. Our HOA was vulnerable because we had no Architectural Guidelines and so forth. The member wanted to turn a three bedroom condo into a two bedroom with an open concept kitchen. This member is in the kitchen remodeling business and does a lot of trade in the industry. Now even after the judgement the downstairs neighbor is still threatening more legal action against these people. See http://www.hoatalk.com/Forum/tabid/55/forumid/1/postid/219044/view/topic/Default.aspx

Also for entertainment read http://www.hoatalk.com/Forum/tabid/55/forumid/1/postid/214850/view/topic/Default.aspx

As for Architectural Guidelines, I finally had to write an unofficial one at the end of last year (http://harbourvistanews.com/PlanningRemodeling/ArchitectureGuidelines.html). I became the Spokesperson for the Architectural Committee for our HOA. These Guidelines were submitted to our HOA Attorney for review two months ago. He will probably charge us $10K and hire a lot of consultants to help him at our expense. We still have not received them back to releases to the members for comment.

Michael Barto
[email protected]
RichardP13 (California)
Posts: 3,868
Posted:
Michael

The lien filed is against the property, not the homeowner. If the homeowner files BK, kit DOES NOT release the lien, a foreclosure though will. So if the homeowner sells, the lien or judgement must be paid to clear title for the new owner.

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