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Posted By AugustinD on 10/07/2016 3:10 PM
LeilaniL, care to share what the two lawsuits are about? Your HOA sounds like how my HOA will be in about two years. A majority vote puts in control some terrible directors; the directors keep doing favors for this majority; the majority, well endowed with perks, does not care what happens to the minority or their neighbors; good folks move out rather than run for the board, if they can afford to move.
Hi Augustin0, The lawsuits include breach of fiduciary duties regarding finances. Also, violation of governing documents as well as civil codes, corporation codes, election codes, etc. Also, harassment and retaliation (excessive fines and violations) for legitimate member activities such as passing flyers to homeowners. The list goes on.
In our case, the abuses were so rampant across so many homeowners that finally we do have a majority ready to recall the board. But that is not so easy when the board blatantly disregards election laws and disenfranchises that majority at will.
In your case, I would recommend the minority band together. First study your governing documents and every civil and corporate and other law that applies to HOAs in your state. Make a list and gather evidence of every law and code and governing document section they violated. Take that list to an attorney specializing in HOA and/or corporate law and ask what can be done.
In our case, one of the remedies in the lawsuit is not only to compensate the owner for all legal costs (I'm sure they will win and recover those costs) but they are also asking a judge to remove the board members. The insurance company's lawyer is involved on behalf of the board. We are told that very few of these types of cases ever get before a judge because they get settled first.
Also, there are other avenues to pursue besides court, such as complaints with whatever oversight agencies exist for the various functions of the HOA at the city, county, state and national level.
I was recently sent this article about an HOA that took their matter to the local news and set up a great recall website.
We may go the publicity route as well.
https://independentamericancommunities.com/2016/10/01/sc-hoa-mess-proves-difficult-to-clean-up/
It takes perseverance, knowledge of the law and your governing documents, time, money, and strategy, but if everyone uses their strengths to meet your goal to recall the board and reclaim fairness in your community, it can be done. Beware though that you will get harassed for it. But the more they do against you, the more reasons you have to sue them.
For safety, though, get a couple security cameras.
When you recall them, the new board will hopefully enact policies and procedures that prevent such tyranny from happening again. In our case, we went from one tyrant on the previous board to a couple monsters on the board that replaced them.
I am new to understanding this process, but I think that is sound advice. Perhaps others have more to add.
Best.