💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

DanN3 (Florida)
Posts: 91
Posted:
Can a Director, serving on the board of directors, be excluded from an Executive Session, in a Florida Condominium, for good reason ?
SheliaH (Indiana)
Posts: 6,964
Posted:
No. The primary reason executive sessions are held is to discuss privileged information, such as board member discipline for a conflict of interest or to discuss legal action by or against the association with the association attorney. This is also why executive sessions should be rare. There should NEVER be any discussion of excluding this or that board member from anything related to association business.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
AugustinD
Posts: 5,144
Posted:
The only circumstances where a board member might lawfully be excluded are on issues where the board member has become a legal adversary to either the HOA or other board members on a particular issue. When discussing the latter issue, I believe the minority board member may lawfully be excluded.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
So far we have one yes and one no. I will say maybe.
RichardP13 (California)
Posts: 3,868
Posted:
If the Board member has been properly censured, then yes.
KerryL1 (California)
Posts: 14,550
Posted:
So.....Dan what ARE the circumstances. I'll wait for that before attempting a reply.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By RichardP13 on 07/31/2017 7:27 AM
If the Board member has been properly censured, then yes.

Hi Richard, do you have a citation for this? I just googled on Davis-Stirling and did not turn up anything that looked solid. This 2015 LA Times article suggests censuring a director may hold a HOA out to liability:
http://www.latimes.com/business/realestate/la-fi-associations-20150503-story.html
RichardP13 (California)
Posts: 3,868
Posted:
Augustine,

I have seen it happen twice, both in my former community. Once, when a director was leaking information to a group of people, we censured the individual and withheld certain documents they were forwarding.

In the second instance, which is currently going on, the Board, by a 3-2 censured a friend of mine for questioning the actions and behaviors of the Board President, rightfully so, I might add. It was in the ethics policy, written by the law partner at the site you referenced.

I am not generally not in favor of such a move, but I have seen instances where it makes sense. If they don't like, there is a court system they can fight it in.
KerryL1 (California)
Posts: 14,550
Posted:
I also think, Augie, you'll find anther way at the D-S website whereby the board creates an Executive Committee of all directors except the rogue. Maybe s/he mouths off about executive session materials. Maybe s/he keeps interrupting at meetings. There also could, of course, be a conflict of interest involved.

The activity of censuring--how to do it-- comes from, I'm pretty sure, Robert's Rules of Order.
KerryL1 (California)
Posts: 14,550
Posted:
I also think, Augie, you'll find anther way at the D-S website whereby the board creates an Executive Committee of all directors except the rogue. Maybe s/he mouths off about executive session materials. Maybe s/he keeps interrupting at meetings. There also could, of course, be a conflict of interest involved.

The activity of censuring--how to do it-- comes from, I'm pretty sure, Robert's Rules of Order.
KerryL1 (California)
Posts: 14,550
Posted:
I also think, Augie, you'll find anther way at the D-S website whereby the board creates an Executive Committee of all directors except the rogue. Maybe s/he mouths off about executive session materials. Maybe s/he keeps interrupting at meetings. There also could, of course, be a conflict of interest involved.

The activity of censuring--how to do it-- comes from, I'm pretty sure, Robert's Rules of Order.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By RichardP13 on 07/31/2017 8:18 AM
Augustine,

I have seen it happen twice, both in my former community. Once, when a director was leaking information to a group of people, we censured the individual and withheld certain documents they were forwarding.

In the second instance, which is currently going on, the Board, by a 3-2 censured a friend of mine for questioning the actions and behaviors of the Board President, rightfully so, I might add. It was in the ethics policy, written by the law partner at the site you referenced.

I am not generally not in favor of such a move, but I have seen instances where it makes sense. If they don't like, there is a court system they can fight it in.

Thank you, Richard and Kerry. I agree that a Board does have to take action when it has direct proof a board member is leaking confidential information. To do nothing may result in an action by the board member that results in the HOA being found liable for various torts.

About a certain Board President resenting being challenged re certain actions and behaviors: I think one of the biggest HOA myths around is that a Board President has special powers not listed in the governing documents. The position too often invites those most interested in a power trip, and hence most likely to abuse her or his volunteer job title of President.
RichardP13 (California)
Posts: 3,868
Posted:
Augustin

The problem was a majority of the Board allowed the behavior. In September, a new Board will be seated and the MC and attorney will be royally fired and legal action will be taken agaisnt the former President.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By RichardP13 on 07/31/2017 7:27 AM
If the Board member has been properly censured, then yes.

Not in Florida. A closed board meeting may only be held to discuss employee matters - a director is not an employee - and matters that would fall under attorney-client privilege. The only "for cause" reason to exclude a director from a board meeting would be if that director was involved or potentially involved in a lawsuit vs the association.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By GenoS on 07/31/2017 2:39 PM
Posted By RichardP13 on 07/31/2017 7:27 AM
If the Board member has been properly censured, then yes.

Not in Florida. A closed board meeting may only be held to discuss employee matters - a director is not an employee - and matters that would fall under attorney-client privilege. The only "for cause" reason to exclude a director from a board meeting would be if that director was involved or potentially involved in a lawsuit vs the association.

Excellent advice ... and I would agree.

While I do not live in FL my mom was looking to purchase a vacation home in the State so I have read and am familiar with the FL HOA statutes. As her trustee she is always asks me to check on issues and offer opinion for her prior to large purchases. Sorry Geno instead of FL she chose NV on latest purchase.... maybe next time.
DanN3 (Florida)
Posts: 91
Posted:
This is the case here. A director sought access to association records and was ignored. The association was challenged in court and the complaining director prevailed and was awarded $500. The rest of the board hired an attorney and is appealing the court decision. The hiring of the attorney and the decision to appeal was done in executive session and the complaining director was not invited to that meeting. So perhaps when the minority number of directors is the object of the majority then that minority would not be entitled to to attend.
DanN3 (Florida)
Posts: 91
Posted:
A director sought access to association records and was ignored. The association was challenged in court and the complaining director prevailed and was awarded $500. The rest of the board hired an attorney and is appealing the court decision. The hiring of the attorney and the decision to appeal was done in executive session and the complaining director was not invited to that meeting. So perhaps when the minority number of directors is the object of the majority then that minority would not be entitled to to attend.
DanN3 (Florida)
Posts: 91
Posted:
That is the case here.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Dan

Interesting in that I say it could be done in Executive Session as it is legal action they are discussing.

The tricky part is them not inviting the entire BOD but as the legal action is against one BOD Member, it might could be all right he was not invited.

You also raise another interesting point about what if legal action against more than one BOD Member by the BOD. My initial blush is if the BOD had a quorum, they could proceed. Thus in a BOD of 3, two is a quorum so they could only go after one. A BOD of 5 needs 3 for a quorum so they could go after two. Extrapolating this out I believe never could a minority of the BOD go after a majority of the BOD and maybe that is the way a democracy works. The majority rules.
DanN3 (Florida)
Posts: 91
Posted:
In this case it was the president that called for the executive session, by invitation, and outside of a board meeting. Thus no agenda item and no minutes of that session. The Board attorney was present via telephone. Perhaps a majority of a board can choose to exclude the minority for any reason assuming a quorum was attained. The minority directors would also thus not be able to use the services of the Board attorney I would assume. In this case the legal challenge is against the judge, not the director, in claiming the judge did not apply the law properly.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By DanN3 on 08/03/2017 4:28 AM
In this case it was the president that called for the executive session, by invitation, and outside of a board meeting. Thus no agenda item and no minutes of that session. The Board attorney was present via telephone. Perhaps a majority of a board can choose to exclude the minority for any reason assuming a quorum was attained. The minority directors would also thus not be able to use the services of the Board attorney I would assume. In this case the legal challenge is against the judge, not the director, in claiming the judge did not apply the law properly.

Dan, your other posts indicate you have the big picture right. My elaboration follows.

-- I do not see that it matters that the basis for the latest legal challenge is the judge's reasoning and not the director per se. The board majority and its attorney are strategizing, one way or the other, for a defeat of the minority. As a matter of law, no way should the minority director be present.

-- Under the law, the majority and minority are opposing parties. The attorney for the organization is legally obliged to take direction only from the majority (assuming what the majority wants is lawful or could be argued to be lawful). The HOA attorney cannot simultaneously represent both parties, and the HOA attorney's counsel to the majority must not be shared with the minority. If the only thing that was discussed at this exec session was the legal issue, it was right that the minority board member be excluded.

-- The minority director has to seek his or her own attorney, paid for by himself or herself.

-- The Rules of Professional Conduct for attorneys are typically part of state statutes. These Rules have a section on the obligations of an attorney for an organization, including when a member of the organization becomes an adverse party. They're worth a read. See https://www.floridabar.org/rules/rrtfb/. See especially Rule 4-1.13 https://www.floridabar.org/rules/rrtfb/rule/?num=4-1.13

Can you post what records the minority director wanted to see and was denied? I think this might be interesting and helpful to future readers. (I know I would find this interesting.) Especially since so far, the minority director is winning.
DanN3 (Florida)
Posts: 91
Posted:
Records sought, I understand were minutes of prior meetings and current landscape contract and perhaps other agreements currently in force. Important to note that the denial was in the form of no response to the request.
DanN3 (Florida)
Posts: 91
Posted:
Might be worth noting that the complaining director was also the board secretary.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By DanN3 on 08/03/2017 4:28 AM
In this case it was the president that called for the executive session, by invitation, and outside of a board meeting. Thus no agenda item and no minutes of that session. The Board attorney was present via telephone. Perhaps a majority of a board can choose to exclude the minority for any reason assuming a quorum was attained. The minority directors would also thus not be able to use the services of the Board attorney I would assume. In this case the legal challenge is against the judge, not the director, in claiming the judge did not apply the law properly.

It doesn't work that way in Florida, though. Any gathering of directors large enough to form a quorum IS a board meeting and MUST be noticed to the membership. "This is an executive session and not a board meeting," doesn't hold water. If a majority of directors are present (a quorum) then it IS a board meeting regardless of what anyone says, including the association attorney. The only way to have it not be a board meeting is if less than a quorum of directors was present.

Ignoring a proper request for official records is the same as a denial.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By DanN3 on 08/03/2017 11:25 AM
Records sought, I understand were minutes of prior meetings and current landscape contract and perhaps other agreements currently in force. Important to note that the denial was in the form of no response to the request.

I am sympathetic to the sturm-und-drang you and your HOA have to suffer. But I confess that now, I am entertained. Can you share what reasoning the HOA presented to the court for ignoring the director-secretary's records request? How much has this cost the HOA in legal fees so far? Apart from entertainment, I am sure this will help some director or member here.

That so many HOA directors do not understand why corporate record viewing laws exist disappoints. The case law is extensive and overwhelmingly on the side of member-shareholders, when it comes to viewing records.
DanN3 (Florida)
Posts: 91
Posted:
The association did not represent itself in court. They were a no-show. The judge required proof of proper notification by the complaining director and confirmed that the court itself also notified the association to appear in court. The complaining director represented himself thus his cost was filing fees, certified mailing costs and the cost to serve notice to the agent of the association. The association started to incur attorney fees after the association decided to appeal the judges ruling. Cumulative association cost is unknown to me. Attorney fee is #300 per hour and may be ongoing.
GenoS (Florida)
Posts: 4,276
Posted:
DanN3, that's both disturbing and comforting to hear. Disturbing because it is pretty well settled that the records must be provided upon request and some boards just don't "get it". Comforting in that it's so well settled that the courts are very familiar with the law and a reasonably intelligent person can prevail without incurring expensive attorney fees.

If it was me I'd be outraged that the board was wasting money on an appeal that was sure to fail, possibly encouraged by an attorney just looking to rack up billable hours. It's a shame THOSE peopole cannot be held personally responsible for their reckless behavior. There was an effort to do that in the last legislative session, but it failed to pass into law. Maybe next year when supposedly the HOA statute will be brought in line with the recent condo law changes. Supposedly.
DanN3 (Florida)
Posts: 91
Posted:
The complaining director is new to the board that has had the same directors for at least 5 years. Don't know if this is a factor. It seems to me that what he was asking for was reasonable. He says he will follow through but will not get his own attorney due to cost. From here on he will request info pertinent to agenda items and if ignored will simply abstain rather than go through the grief again. Can't say I blame him.
AugustinD
Posts: 5,144
Posted:
Dan, typically after a plaintiff files the papers for a lawsuit with the court, and the defendant is served the papers, the defendant is required to file a written response within say 30 days in writing. Did this even happen?
DanN3 (Florida)
Posts: 91
Posted:
Did not happen. There was no response.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By DanN3 on 08/02/2017 12:18 PM
This is the case here. A director sought access to association records and was ignored. The association was challenged in court and the complaining director prevailed and was awarded $500. The rest of the board hired an attorney and is appealing the court decision. The hiring of the attorney and the decision to appeal was done in executive session and the complaining director was not invited to that meeting. So perhaps when the minority number of directors is the object of the majority then that minority would not be entitled to to attend.

I find it beyond STUPID to contest a case where someone was awarded a measly $500 and BOD directed to follow the law. Potentially the next one months attorney fees would be MORE than that amount. I sincerely hope in your State it is similar to my own and that any IDIOTS have to pay other parties attorney fees along with their own. If not ... your legislators need to look at my state in order to curb BS.

PS - If your owners do not replace the IDIOTS at the next meeting ... well guess they should have to pay for their own garbage.
DanN3 (Florida)
Posts: 91
Posted:
I think that Florida allows one to ask for reasonable attorney fee reimbursement for the prevailing party. The awarding of such could be lethal to an individual and just a nuisance to a large association. Sometimes the complaining party had a strong argument but had a procedural defect in the handling of the case and thus loses the case and may have to pay the other sides legal fees as well as their own. Going after an association is fraught with peril even if you have a great case. Most times, when one is successful, all he gets is what he should have received in the first place and nothing more. Time, energy, the loss of use of funds, the possible perils, discourages most from seeking justice. Further, an association that loses a case can first ask for the judge to reconsider and if that fails seek to appeal which adds considerable costs especially to the brave soul who probably now regrets taking legal action to begin with.

In this case most of the owners do not even know what is going on. There was no board meeting thus no minutes and any questioning is met with the 'attorney client privlage' argument. In financial statements, costs are thrown into a 'Misc Expense' category. The board mostly holds board meetings that are required by law thus they rarely meet and when they do it is on a Monday mid afternoon when most are at work thus attendance is very low due to the day and time the meetings are held also if you are not paying attention and do not catch the 48 hour meeting notice you may not know that there was a meeting in the first place. In an environment like this it is hard to blame the owners for not taking appropriate action like a recall. Yes, the owners will have to pay their share if attorney fees are awarded the complaining party, plus the association's own, but they will not know really why.

Thanks for chiming in though.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By DanN3 on 08/10/2017 4:10 AM
I think that Florida allows one to ask for reasonable attorney fee reimbursement for the prevailing party.

Yes, it does. A key part of the process is you do have to ask for those costs to be reimbursed. The courts do not award them automatically.

I'm going to disagree with you on the idea that you can't blame the homeowners because the meetings are too inconvenient to attend. I would completely blame the homeowners for that. If they don't care enough then they deserve what they get. Sorry, I don't mean to be mean or nasty.

The procedure for a recall has nothing to do with board meetings, by the way. A certain percentage of owners can call a members meeting for that purpose. Or, in Florida, a written instrument may be used to effect a recall.

Depending on when your elections are, it might be better to get some candidates ready to run for the board at the next election rather than attempt a recall. Read your bylaws carefully. Boards pull all sorts of shady stuff, but merely scheduling board meetings at the most inconvenient times for the members is really not a very effective way to thward the will of the homeowners. It sounds to me like your biggest problem is homoenwe apathy. And if that's the case then there really is no one else to blame.
DanN3 (Florida)
Posts: 91
Posted:
Perhaps I should add that this is a 150 unit condominium and if one goes by how many owners get their mail there, only 19 units are owner occupied. The rest are rented out or are a vacation home and vacant most of the time. Ok, so one can make the argument of owner apathy but maybe not so harshly.
PitA
Posts: 1,416
Posted:
..... that is the way a democracy works. The majority rules.



Thank the Creator we are a Republic with a Constitution, SENATE, and an Electoral College to 'reign in' the majority.

Think American history:

The Republicans (Constitutionalists) overcame the Democrats (Populists) and managed to over-ride the will of the majority in order to abolish slavery.

Albeit at the cost of many lives.

To paraphrase Thomas Jefferson:

'Gentlemen, I give you the Republic; pray that you may keep her.'

Well, y'all, we failed. We now elect our Senators by direct popular vote.

The truth sounds stranger than fiction.

🎯 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