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RobertaS2 (Michigan)
Posts: 81
Posted:
How to you challenge a reading of the articles and bylaws when the Board does not agree and uses the attorney to be judge, jury, and executioner in support of the reading the Board wants. Where do/can you go, or to whom, politely, without a lawyer, for a mediation or an unbiased decision when there are multiple "interpretations" of the bylaws/or articles?
SheliaH (Indiana)
Posts: 6,964
Posted:
Well, the attorney is supposed to help the board interpret the documents, so if board members have a disagreement, they’ll have to find a way to come to a consensus.

It does help to start at the beginning – are you on the board? If so, what section has prompted the disagreement and why is an interpretation necessary? For example, if there’s a question about what to do about a CCR violation but the documents aren’t that clear as to what should happen if the homeowner can’t or refuses to fix it, you may have to take legal action against the homeowner (who may bring up the conflict if he/she’s aware of it) and then a judge will have to make a decision.

If you’re the homeowner, you’ll have to take it to your own attorney and ask him/her for an interpretation. Sorry, but you’ll have to pay for it – going to the Internet for legal advice is a dangerous thing, especially since most of us aren’t attorneys and what may be true in our state may or may not be the case in yours.

Depending on the situation, this may be a good time for both sides to come together and work out a compromise – forget about the legal mumbo-jumbo, but look at the problem and figure out the best way to solve it.

Once that’s done, perhaps a closer look can be taken at that section and the board can work with the association attorney on a rewrite that’s written in plain English that people will understand (which may also require homeowner approval since you’re talking about amending the documents).

This is why HOAs really need to take a look at the documents every 7-10 years or so and see what can be dropped, added or amended. It’s not about addressing every single issue in HOA land – you’ll never be able to do that and most people won’t read all that anyway (they barely read the documents now!). Sometimes, resolving conflict is a matter of people being willing to stop and think for a few minutes, breath so their blood pressure will drop back to normal and use some common sense (if they have any).

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
WalterH4 (Indiana)
Posts: 145
Posted:
I believe you have 3 options:
1. Hire a lawyer to take it to court, and let a real judge decide. Probably not a good option!
2. Try to convince them via petition. If they are interpreting it in a way that disagrees with the majority of HOA members, then you've got a good case for convincing them.
3. OR, Get a new board elected, and undo what they've done.

Note that #2 can lead to #3... as you are getting a petition signed, maybe you also gather proxies/votes for a new board at the next election (make sure you do the proxy process correctly, or the board may invalidate them).

RobertaS2 (Michigan)
Posts: 81
Posted:
Walter, Shelia, Thank you for your comments.

Shelia, unfortunately, the Board's majority is biased and have directed the HOA attorney to defend their biases.

Oh that we could sit down and discuss this without power trips.

It is very simple (to me anyway). The bylaws state one thing. The Articles state another. The articles also state that when there is a conflict between the bylaws and the articles, that the articles shall prevail.

The HOA lawyer and the biased members of the board insist that the bylaws are the only standard.

Walter,I like your simple advice. Not instant gratification. And hard to get good board members when so many homeowners prefer not to involve themselves in HOA businessBut we do have two good members on the board, two who never speak up, one of which always goes along with the powerful ones, and three who like to "lord" over the homwowners. (You can't make a yellow flower into a red flower...)(But perhaps you can consult a head master gardner???)
KerryL1 (California)
Posts: 14,550
Posted:
Is it possible, Roberta, that your state statutes support your bylaw vs. your articles?

Would you hare the wording of each with us? I know it doesn't solve your problem, but fresh eyes often see a lot!
WalterH4 (Indiana)
Posts: 145
Posted:
Quote:
Posted By RobertaS2 on 02/24/2020 2:55 PM
Walter, Shelia, Thank you for your comments.

Shelia, unfortunately, the Board's majority is biased and have directed the HOA attorney to defend their biases.

Oh that we could sit down and discuss this without power trips.

It is very simple (to me anyway). The bylaws state one thing. The Articles state another. The articles also state that when there is a conflict between the bylaws and the articles, that the articles shall prevail.

The HOA lawyer and the biased members of the board insist that the bylaws are the only standard.

Walter,I like your simple advice. Not instant gratification. And hard to get good board members when so many homeowners prefer not to involve themselves in HOA businessBut we do have two good members on the board, two who never speak up, one of which always goes along with the powerful ones, and three who like to "lord" over the homwowners. (You can't make a yellow flower into a red flower...)(But perhaps you can consult a head master gardner???)

Our ByLaws have the same clause about Articles overriding them. Our ByLaws permit board members to suspend voting rights, yet both our Articles and Declaration both state "every homeowner SHALL have one vote". And so the argument is that the ByLaws can't undo what the Articles/Declaration have mandated (via "Shall"). If they suspend voting rights, then technically you no longer have a vote. However, attorneys here say that it's not wrongdoing to view this differently, and say "no we haven't taken away your vote; we've only suspended it because you don't have the correct mailbox, etc".

I had that fight with our previous board members, and they insisted on their right to suspend voting rights. So I showed them the legal argument in a 2-page document, and told them if they didn't change their policy, that I'd be canvasing the neighborhood and going on NextDoor to advertise their decision to view things this way.

In short they were trying to enforce uniform mailboxes upon the vast majority of home owners, and when we suggested that perhaps we should amend the CC&R's to remove unpopular clauses no longer wanted, they informed us that not enough people were even *allowed* to vote to satisfy the 2/3rd requirement. Only 30% of our HOA was fully compliant, and therefore not allowed to vote. This would also impact the Board elections as well -- meaning that they could simply not let the vast majority of us vote on the next board.

In the end, they simply made it very easy to replace them with a whole new board. We canvased, and obtained proxy votes from the majority of all home owners, to get a new board -- and then we replaced them.

But before we did this, we did get them to retract their "vote suppression" tactic and say "OK, we won't suppress votes", because I had already polled dozens, and discovered how angry everyone was at them. And that was enough for them to back off on that tactic.

So in truth, I think "publicity" can play a big role on coercing a board into "behaving" in a way that isn't offensive to most.

So the real question then is this : "Is your board behaving in a way that would embarrass them (and anger your neighbors) if it was publicized?"

If Yes, then you are in a good position to coerce them. If No.... then I question your motives, sorta. If you are trying to coerce a board to do things that the vast majority of HOA members wouldn't agree with, then maybe you should stop trying to coerce them. If you want it done differently, get on the board yourself with a few like-minded individuals; then you can do things differently.

In our case, the board was just too much into left field, and we needed a bigger change; so we replaced them, and their behavior made this very easy to do.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By WalterH4 on 02/24/2020 4:43 PM
We canvased, and obtained proxy votes from the majority of all home owners, to get a new board -- and then we replaced them.

Ultimately one becomes the other, but there's no such thing as a "proxy vote". Proxies are not votes.
RobertaS2 (Michigan)
Posts: 81
Posted:
Again, Thank you, Walter for your response and experience. Also, thank you Genos, for adding your addition.

Walter, I think that the way some of the board behave would greatly embarrass them if made widely public. Three board members (it used to be six so we are making progress, albeit slowly)in our HOA have highly "left field" methods and behaviors. There are also two members who behave very ethically. And we have two who follow or abstain only, which can be viewed as respectful and/or meek. Hard to say. Hard to understand why they stay on the board.

I would hesitate to embarrass the whole board.

I do like the idea of having someone draw up a legal argument in one or two pages and presenting that. It seems to the point, legal, and polite.

A lot of the HOA homeowners do not appreciate their or others being disenfranchised by the board majority. But a lot of homeowners don't want to get involved in matters unless they directly affects them or their property. And there are those who don't wish to get involved because they fear retribution (which is disturbing and has happened here.)

It is helpful too hear how others have navigated a difficult board or board majority, or also experienced a questionable reinterpretation of the bylaws and articles,(and, in our case also the odd, questionable use of the HOA attorney to enforce that).
AugustinD
Posts: 5,144
Posted:
RobertaS, I think you should post verbatim what it is you think conflicts in the Bylaws and Articles of Incorporation. If you do, I would be more inclined to offer specific advice.

An attorney is not always necessary. A well-written, short demand letter can sometimes solve the problem.
AugustinD
Posts: 5,144
Posted:
RobertaS, is this a condominium?
RobertaS2 (Michigan)
Posts: 81
Posted:
Thank you for your reply, Augustine.

I have purposely tried to be vague as to protect my community while I ask wiser folk (here :-D)what can (or cannot) be done. I want to protect privacy and maintain politeness. And I could be wrong.

I can say, it is about who is allowed to represent their property. The bylaws say one thing. The articles say with multiple interests, the family or others with "interests" in the property ("Interest" legally, means anyone who co-owns, family members, someone who is married while acquiring the property, or someone who has personally paid something for it or its taxes or its improvements. They do not say someone with a POA, although that is in question as well.) will decide among themselves who represents the property so long as only ONE vote/representative per property, which can change from year to year. The articles also say that when there is a conflict between the bylaws and the articles, that the articles shall prevail.
RobertaS2 (Michigan)
Posts: 81
Posted:
It is a multiple single home HOA: townhouses, single homes, and (rental) apartments.
AugustinD
Posts: 5,144
Posted:
RobertaS2, thank you for the bit of elaboration. I see you posted a similar concern here: https://www.hoatalk.com/Forum/tabid/55/forumid/1/postid/271250/view/topic/Default.aspx. I think I am getting the picture.

It appears your HOA is not subject to the Michigan Condominium Act. But for what it is worth, the Michigan Condominium Act also states that the Articles of Incorporation trump the Bylaws. The latter could help a tiny bit.

I am taking you at your word that (1) it is clear that the Articles of Incorporation allow what you wrote they allow; (2) that the Articles of Incorporation explicitly state that, when a conflict arises between the Articles and the Bylaws, the Articles prevail; and (3) the Board is refusing to comply with the Articles. It sounds to me like it is late in the game, and it is time for a full-force demand letter like the following:

Dear HOA Board,

The Articles of Incorporation at Article ___ state: [quote verbatim what it states about ownership interests]. The Articles of Incorporation at Article ____ state: [quote verbatim what the Articles say about trumping the Bylaws when a conflict arises]. In particular, [Jane Smith] and I wish to have [Jane Smith] represent the property at _______ at meetings and in votes. Ms. Smith has a legal interest in the property at ______ as follows: She _______. No one else has a legal interest in the property. Would you please allow Ms. Smith to represent the property _____ at meetings and in votes? Please provide your response by March 15, 2020. If the board refuses to allow Ms. Smith to represent the property at _____, then Ms. Smith and I will have no choice but to seek injunctive relief through the courts.

Sincerely,

[name]
[address]
[phone]
[email addie]
========================

If the HOA attorney writes back with his (undoubtedly intimidating) explanation of the law, do post back and let the forum know. Because he's running up the HOA's legal bills while unlawfully advising someone who is not his client. Because the HOA attorney's job is to advocate solely for his client, anything the HOA attorney says to you (a legal adversary) so as to advocate for his client is virtually worthless.
AugustinD
Posts: 5,144
Posted:
RobertaS2, a caveat: The instant you threaten a lawsuit, this board will likely make your life a living hell. They will use the HOA attorney to do so, forcing all members to pay for his billable hours. It's sad but it's usual. Will a long drawn out battle be worth it? Particularly if this attorney is the dreck I suspect he is and responds with lies about you and yours who are fighting the board? Which by the way he is not only allowed to do but will argue he is obliged to do under the Rules of Professional Conduct.

If you do not have a like-minded majority to unseat this board, fighting them on this may not be worth it.
RobertaS2 (Michigan)
Posts: 81
Posted:
Augustin, Thank you again for your help.

It is very valuable information and advice.

I too share your concerns about how far I (or some of us) should be willing to go. I will speak with other homeowners to see how to proceed and let you know.

Again, Thank you.
RobertaS2 (Michigan)
Posts: 81
Posted:
PS
HOA attorney fees (allowable/reasonable attorney fees are also described in articles) are now at quite a large amount of thousands of dollars used to hurt and threaten various individuals who challenge the Board and also to represent one particular board member who needs his own questionable acts as board member "hidden" as "work product."
Which I would also (although I am not an attorney) consider in some reading, violating the use of our HOA attorney.
Our articles also state that board members are indemnified, but NOT if they are found "acting against the best interest of a shareholder (homeowner)."
PaulJ6
Posts: 990
Posted:
Quote:
Posted By RobertaS2 on 02/24/2020 2:04 PM
How to you challenge a reading of the articles and bylaws when the Board does not agree and uses the attorney to be judge, jury, and executioner in support of the reading the Board wants. Where do/can you go, or to whom, politely, without a lawyer, for a mediation or an unbiased decision when there are multiple "interpretations" of the bylaws/or articles?

I've been in this situation.

Even if you have a lawyer and your interpretation is right, the board won't necessarily agree with you unless and until it's forced to.

So the answer is "nobody, unless you're willing to file a lawsuit".
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By PaulJ6 on 02/26/2020 5:22 AM
Posted By RobertaS2 on 02/24/2020 2:04 PM
How to you challenge a reading of the articles and bylaws when the Board does not agree and uses the attorney to be judge, jury, and executioner in support of the reading the Board wants. Where do/can you go, or to whom, politely, without a lawyer, for a mediation or an unbiased decision when there are multiple "interpretations" of the bylaws/or articles?


I've been in this situation.

Even if you have a lawyer and your interpretation is right, the board won't necessarily agree with you unless and until it's forced to.

So the answer is "nobody, unless you're willing to file a lawsuit".

I agree. Either file a lawsuit or get over it.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By RobertaS2 on 02/25/2020 10:15 PM
PS
HOA attorney fees (allowable/reasonable attorney fees are also described in articles) are now at quite a large amount of thousands of dollars used to hurt and threaten various individuals who challenge the Board
I too have witnessed this. And to be clear, where I was, just about every challenge was solidly based in law and ultimately resulted in victory. Though the victories could be called "pyrrhic." The Board subsequently often would have its (sic) attorney and other professionals (CPA, top manager with the city) doing work for the HOA write letters trashing the individuals and had them read aloud at board meetings. I think the HOA attorney ghost-wrote the letters. The top manager with the city ultimately was fired several months later. A number of my fellow owners like to think it was partly because we formally complained about her lies in the letter. The HOA attorney was fired a year+ later. He stupidly thought the rogue board would never turn on him.
Quote:
Posted By RobertaS2 on 02/25/2020 10:15 PM
and also to represent one particular board member who needs his own questionable acts as board member "hidden" as "work product." Which I would also (although I am not an attorney) consider in some reading, violating the use of our HOA attorney.
I agree with you but I do not think there is any substantive legal claim to be made on the point that would be successful.
Quote:
Posted By RobertaS2 on 02/25/2020 10:15 PM
Our articles also state that board members are indemnified, but NOT if they are found "acting against the best interest of a shareholder (homeowner)."
Again, I think this is hard to prove. It's just too subjective. Plus as you know, a Board has at its disposal virtually infinite resources compared to a measly member.

PaulJ6 has spoken of suing a HOA attorney right alongside the HOA and winning. But I think this is a pipe dream for the typical HOA member.

The appeals courts have plenty of cases where a HOA member defeated a board. But from reading here, more often than not it is simply not financially realistic for a member to persevere this long. On the other hand, I think that the typical HOA member often is ignorant of his or her obligations as a HOA/COA member. On the third hand, I read the responses from past and present board members here and there is frequently an attitude that the board does not have to follow the law; what the board says goes.
RobertaS2 (Michigan)
Posts: 81
Posted:
I cannot thank all if you enough for your help and counsel. This board, HOA TALK, is simply incredible. You rock!

BTW, as/if things improve or change, I will post here.

In the meantime, thank you so much!!!

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