lawyer fees bill back to owner

Started by RuskM • 15 replies • 1236 views

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RuskM (Florida)
Posts: 6

Posted:

Can an HOA bill back attorney fees to owners. My HOA asked an attorney about some issues with my HOA account and decided to bill me for their inquiry. I was not aware of this until I inquired about the increase on my statement. Can they do that?

AugustinD
Posts: 5,144

Posted:

Check your HOA's governing documents to see if they say anything on the point. Generally if the Board gave a direction to the attorney, and the attorney followed this direction, then the HOA should pay the bill.

I have seen Boards try this in the past and be reversed, typically by the HOA attorney him- or herself.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

The HOA lawyer is NOT your lawyer. So if you were asking the HOA lawyer, then yes they can send you the bill. Typically, even if the board talks to the lawyer, it has to be pre-approved. In my HOA, we assigned 1 person to talk to the lawyer which was usually the President. It had to be approved by the board for contacting the lawyer or doing any kind of legal work. Which included filing liens, foreclosures, or letters/advice.

Each lawyer also charges differently. A bill breakdown may be necessary. Not saying your not on the hook for all of it. Just want to make sure what your being charged for. That way next time you will know what is what.

Former HOA President

RuskM (Florida)
Posts: 6

Posted:

They will not break down the bill. They wont even tell me what they discussed. They said it was confidential.

DouglasM6 (Arizona)
Posts: 724

Posted:

Do you know of any "issues" with your HOA account? Are you current on assessments and fees? Any outstanding fines?

I feel like there is more to the story.

RuskM (Florida)
Posts: 6

Posted:

All my fees are current. My account is in good standing with the exception of not paying this attorney fee of $250.

ArtL1 (Florida)
Posts: 140

Posted:

You'd have to check your governing documents to answer this, but it sounds incredibly fishy to me. Ours say that the HOA can, among other things, seek injunctive relief if a member violates our restrictions and that the offending owner shall be responsible for all costs of enforcement including attorney's fees. If they didn't even get as far as filing suit against you (for what, you apparently don't know), then the attorney probably convinced them they had no case. If your docs are like mine, I'd say at that point, you're off the hook, and the fees are the HOA's to pay.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I re-read the post. Were you at any time behind in dues or had plans to run for a board position? What issues could there have been for them to inquire a lawyer? For us, that meant we were close in filing a lien or foreclosure. Otherwise, questions into your account were referred to the bookkeeper not lawyer.

Feel like we are missing something. Did you want copies of some documents? Ever refuse to pay out of protest? Set up a new way of payment? Like going from check to automatic withdraw? Something triggered these questions and the lawyer probably told them they could bill you for the consultation.

Former HOA President

RuskM (Florida)
Posts: 6

Posted:

Never behind in our dues. Our dues are set on an automatic payment. I think it has something to do with fines. Our bylaws are written that there needs to be a fines/violations committee that we can discuss the issue. In which, there was no committee. The BoD is complacent with the HOA rules.

RuskM (Florida)
Posts: 6

Posted:

What can I do? Seek an attorney? I tried to fix it by trying to discuss this issue with my BoD and Property Manager. They keep saying later while the fee is still on my account which is incurring late fees.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I would pay the money. Hiring a lawyer is just more costly to you and everyone around you. Did not mention any fines in your original post. Also are you the same one who posted about President putting the HOA money into a CD?

Former HOA President

RuskM (Florida)
Posts: 6

Posted:

No fines. No, that wasn't me.

During an annual meeting, the BoD requested a special assessment to do a project. The owners rejected the assessment and project request. About 6 months later,the BoD went out to get a loan to do a (tree) project. Does that sound ok?

DouglasM6 (Arizona)
Posts: 724

Posted:

There is a lot more to this story than what we're being told. It sounds like you are looking for a specific answer. I can tell you now that even if you get that specific answer on this board, it won't help you in real life.

Your BOD can apply the funds they receive from you towards fines and special assessments FIRST, then the balance towards your regular assessments. This may be what's happening. if so, be careful.

You are also asking us questions we cannot answer. We cannot know what your BOD can or cannot do as far as applying for a loan. Those answers lie in the governing documents.

My suggestion to you, is go talk to an attorney. Take all of your documents with you, and all the correspondence you've had with the BOD. That would be the best place to start in this situation.

GenoS (Florida)
Posts: 4,276

Posted:

Trying to read between the lines here... it sounds like Rusk's board fined him without going through the statutory process for levying fines which does include the necessity for an opportunity to appear before a fining committee, and requires the fining committee to approve or reject any fine levied by the board.

If you were in a condo, this 2012 DBPR Arbitration ruling would be just what the doctor ordered. Failure to follow due process in levying a fine resulted in the DBPR declaring that the fines were invalid and unenforceable.

However, the Florida DBPR will only consider HOA disputes regarding elections and recalls. All other disputes are subject to statutory pre-suit mediation and only when that fails may the unresolved dispute be filed in court (FS 720.311).

I think your only recourse is pre-suit mediation followed by a court action. The options are few. The same applies for the accusation that the board violated its own governing documents by improperly imposing a special assessment. Ready those documents carefully because the Florida Statutes do not require owner approval of assessment increases or special assessments. Only your own governing documents can do that.

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By MelissaP1 on 01/16/2018 5:21 PM
I re-read the post.

Reading posts thoroughly before responding is a good habit to get in to.

Escaped former treasurer and director of a self managed association.

RichardP13 (California)
Posts: 3,868

Posted:

I'll second that.

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