BobC20 (California)
Posts: 7
Posts: 7
Posted:
We have a small association less then 40. Our next annual meeting is not for a couple months. We have a pressing issue that needs to be voted on. Is an email vote acceptable?
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MarkW18
Posts: 1,290
Posts: 1,290
Posted:
Pressing issue for whom? Does it require a membership vote by secret ballot?
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
What is this "pressing issue" that the board can't vote on it? With MarkW, are you sure it requires a vote of the Members (owners)?
Meanwhile, I don't think members (Owners) can vote by email in CA--I honestly haven't checked on that lately.
Meanwhile, I don't think members (Owners) can vote by email in CA--I honestly haven't checked on that lately.
DaveP8 (Oklahoma)
Posts: 47
Posts: 47
Posted:
There are several online voting web sites you could use. Very affordable. Here's one: https://electionbuddy.com/
BobC20 (California)
Posts: 7
Posts: 7
Posted:
It involves settling a potential lawsuit to avoid the much more costly defense. We do not employ an attorney but have been advised by an attorney that this is best course of action.
AugustinD
Posts: 5,144
Posts: 5,144
Posted:
Quote:
Posted By BobC20 on 02/08/2020 8:16 AM
We have a small association less then 40. Our next annual meeting is not for a couple months. We have a pressing issue that needs to be voted on. Is an email vote acceptable?
We have a small association less then 40. Our next annual meeting is not for a couple months. We have a pressing issue that needs to be voted on. Is an email vote acceptable?
-- Based on the following, I do not recommend voting by email or any other way that the following two sites say is unacceptable:
https://www.davis-stirling.com/HOME/E-Ballots
and
https://www.davis-stirling.com/HOME/Statutes/Civil-Code-5100#axzz2CR2ljirY
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
When our HOA settled a lawsuit several years ago, the Board voted on it. Why do you think the Owners must vote on this? With Augustin, is there something in your bylaws or CC&Rs that say Owners must vote on this??
If an attorney is sort of advising you, doesn't s/he know if owners must vote on this?
Why must this be acted on so quickly? Are you on the board, Bob? I feel like we're missing a lot of details.
If an attorney is sort of advising you, doesn't s/he know if owners must vote on this?
Why must this be acted on so quickly? Are you on the board, Bob? I feel like we're missing a lot of details.
BobC20 (California)
Posts: 7
Posts: 7
Posted:
Thanks for your input. I will reach out an attorney to determine if this needs a vote. The urgency was a date given by the threatened lawsuit.
MarkW18
Posts: 1,290
Posts: 1,290
Posted:
We had a provision in our CCRs where the membership was required to vote prior to actions costing over a certain amount of money. Does yours have similar language?
4.1.13 The Association has the right and power to prosecute or defend, under the name of the Association, any action affecting or relating to the Project or the personal property thereon, or any action in which all of the Owners have an interest in the subject matter of the action.
Notwithstanding the foregoing, without the prior vote or written assent of a majority of the voting power of the Association, the Board may not institute any legal proceeding (including any arbitration or judicial reference proceeding) against any person or entity the cost of which could
reasonably be expected to exceed Two Thousand Five Hundred Dollars ($2,500.00). In estimating the costs, the Board shall include all normal and customary court costs and attorneys' fees without regard to the possibility of recovering costs and fees if the Association were to prevail.
4.1.13 The Association has the right and power to prosecute or defend, under the name of the Association, any action affecting or relating to the Project or the personal property thereon, or any action in which all of the Owners have an interest in the subject matter of the action.
Notwithstanding the foregoing, without the prior vote or written assent of a majority of the voting power of the Association, the Board may not institute any legal proceeding (including any arbitration or judicial reference proceeding) against any person or entity the cost of which could
reasonably be expected to exceed Two Thousand Five Hundred Dollars ($2,500.00). In estimating the costs, the Board shall include all normal and customary court costs and attorneys' fees without regard to the possibility of recovering costs and fees if the Association were to prevail.
AugustinD
Posts: 5,144
Posts: 5,144
Posted:
Quote:
Posted By BobC20 on 02/08/2020 10:07 AM
It involves settling a potential lawsuit to avoid the much more costly defense. We do not employ an attorney but have been advised by an attorney that this is best course of action.
It involves settling a potential lawsuit to avoid the much more costly defense. We do not employ an attorney but have been advised by an attorney that this is best course of action.
Legally I think the best course of action is for the board to get an attorney that actually agrees to represent the HOA (even if it is only on this one issue); have the attorney examine the threat by the member; get the attorney's advice (protected by attorney-client privilege); and then proceed. Doing anything else is flying blind. In my opinion, flying blind here would be a violation of fiduciary duty, possibly a huge one.
If the OP shares more details, even of a general nature, about the threat from this OP, then I believe this forum may very well be able to help this board prepare for a meeting with an attorney.
AugustinD
Posts: 5,144
Posts: 5,144
Posted:
Also, does the board have what is called a "demand letter" from the member threatening to sue?
Has the HOA insurer been notified? Often the terms of a HOA's insurance contract give the HOA access to an attorney (paid for by the insurer) immediately. Also some insurance contracts have a "hammer clause," meaning the decision to settle is left entirely to the insurance company.
Has the HOA insurer been notified? Often the terms of a HOA's insurance contract give the HOA access to an attorney (paid for by the insurer) immediately. Also some insurance contracts have a "hammer clause," meaning the decision to settle is left entirely to the insurance company.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Along with Augustin's points, BobC, how can this attorney you reached out to advise you without reading your bylaws and maybe your CC&Rs on this topic. See MarkW's post on this.
CA has a lot of statutes about HOAs and unless this attorney is an HOA attorney, S/he probably wouldn't be of much help.
ARE you on the board, Bob? I don't think you're purposely being evasive, BUT you seem to know so little about your HOA's governing documents that you cannot or will not answer our questions.
CA has a lot of statutes about HOAs and unless this attorney is an HOA attorney, S/he probably wouldn't be of much help.
ARE you on the board, Bob? I don't think you're purposely being evasive, BUT you seem to know so little about your HOA's governing documents that you cannot or will not answer our questions.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
An aside. My HOA has two attorneys. One is the Attorney of Record for the association/corporation. His law firm is one of the biggest HOA law firms in SC. We are chicken feed business to him. No BOD member has had any contact with him, other than me on a phone consult, in 5 years. His name does draw fear when it comes to HOA's and for this reason we would not drop him as our Attorney of Record but but if he walked into an annual meeting, no one would know who he is.
The other is a highly respected, local, and general law attorney. We have been using him for debt collection (overdue dues) but we will be using him more for other things. Fortunately we do not have any legal issues....yet..LOL
Bottom line is an association might well have more than one attorney for various issues.
The other is a highly respected, local, and general law attorney. We have been using him for debt collection (overdue dues) but we will be using him more for other things. Fortunately we do not have any legal issues....yet..LOL
Bottom line is an association might well have more than one attorney for various issues.
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