LaskaS (Texas)
Posts: 1,025
Posts: 1,025
Posted:
hi,, I know every d&o insureance policy is different, I'm asking a general question.
If clear violations of procedure and bylaws are discovered ..the new board discovered this about the old board.
these violations resulted in hundreds of thousands of dollars being paid out to vendors. despite now finding out that they billed for work that was not done.
Rather, than presenting the invoices to the board, so that verification of work done, and quality of work could be checked, the president input the invoices into our 3rde party payment system,(strongroom).
This violates the requirement for all actions and decisions of the hoa come from a board vote..
there are literally dozens of other violations of the bylaws, declaration and texas property code..
Many of them resulted in the association losing hundreds of thousands of dollars over a 6 month period..
Some of the money was for ill advised work.. I know we won't get that back.. because as i understand, the board has a right to make bad decisions.. but they don't have a right to make decisions and spend money that is outside of their legally defined authority..
If the board did spend money on things that were supposed to be the homeowners responsibility... will the d&o cover that.
If the board approved payments on invoices without checking or verifiying the work,,and it turns out many of the invoices were bogus,,,, would insurance cover that
If the president brought in a contractor, that did not go through the bidding process and was not vetted by the entire board.. .. and this contractor had a severely reduced scope of work but charged more money... will insurance cover that..
the new board is in the process of hiring a forensic auditor. I know the hoa can also pursue legal channels to get money back that was paid for work that was not done.. but I am wondering if the d&0 insurance is also a valid channel to pursue to recoup some of the money....
If clear violations of procedure and bylaws are discovered ..the new board discovered this about the old board.
these violations resulted in hundreds of thousands of dollars being paid out to vendors. despite now finding out that they billed for work that was not done.
Rather, than presenting the invoices to the board, so that verification of work done, and quality of work could be checked, the president input the invoices into our 3rde party payment system,(strongroom).
This violates the requirement for all actions and decisions of the hoa come from a board vote..
there are literally dozens of other violations of the bylaws, declaration and texas property code..
Many of them resulted in the association losing hundreds of thousands of dollars over a 6 month period..
Some of the money was for ill advised work.. I know we won't get that back.. because as i understand, the board has a right to make bad decisions.. but they don't have a right to make decisions and spend money that is outside of their legally defined authority..
If the board did spend money on things that were supposed to be the homeowners responsibility... will the d&o cover that.
If the board approved payments on invoices without checking or verifiying the work,,and it turns out many of the invoices were bogus,,,, would insurance cover that
If the president brought in a contractor, that did not go through the bidding process and was not vetted by the entire board.. .. and this contractor had a severely reduced scope of work but charged more money... will insurance cover that..
the new board is in the process of hiring a forensic auditor. I know the hoa can also pursue legal channels to get money back that was paid for work that was not done.. but I am wondering if the d&0 insurance is also a valid channel to pursue to recoup some of the money....
