Owner Sue Managment company

Started by FrankM17 • 11 replies • 553 views

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FrankM17 (California)
Posts: 3

Posted:

I am a owner that has a slab crack. i have waited 6 months for the management company to inform the HOA board as what they are to do. I also have asked for information from the management company and the board has directed them to provide the information and the Management company has not provided any information. So now i sit with a construction project that has my unit to the studs and because the management company has not moved forward i can not move forward either.

Question can i as a owner sue the management company for failure to manage, can i sue them in small claims so they cant bring in big lawyers to bully me, or do i file a claim against their insurance company?

AnnaJ1 (Maryland)
Posts: 95

Posted:

From what I can glean online, you can sue the management company to hold them responsible just as you can any other business. But, you may want to consider filing a complaint with any local/state regulatory entity as that will save you legal costs. Is there a local HOA dispute board? Can you file a complaint with the attorney general?

BillH10 (Texas)
Posts: 1,217

Posted:

You should have a serious discussion with the Board regarding this matter.

The management company is responsible to the Board for execution of its responsibilities. If the management company does not perform, it is the responsibility of the Board to take action.

For all you know, the Board has issued directions to the management company not to proceed with the work, or perhaps has not authorized payment to the contractor or what have you.

Do you have a property manager? What does he or she have to say about this?

ChrisE8
Posts: 454

Posted:

You can sue the management company, but (1) your claim is probably easier against the HOA and (2) the management company might be able to find an exception and bring in a lawyer (if it has in-house counsel, it can probably bring that lawyer to court).

The management company would be the one to file a claim against its insurance company once it's sued, or it can maybe seek indemnification from the HOA, which could in turn cause the HOA to come after you for payment that it makes to the management company.

I'd go after the HOA.

AugustinD
Posts: 5,144

Posted:

FrankM17, you do not have a contract with the management company. You do have a contract with the homeowners' association. Your complaint is with the HOA. California statutes dictate that certain steps be taken when complaints with HOAs, like yours, arise. Please consider reviewing the following web site: https://www.davis-stirling.com/HOME/Internal-Dispute-Resolution

Submit a complaint to the HOA Board in writing. Be polite and "just the facts." The words all by themselves, free of emotion, speak plenty loudly here. Your complaint should state (1) your objections to the management company's conduct; (2) your needs regarding fixing the slab. Send the complaint to the board certified mail, return receipt requested to the HOA's registered agent. If you think the management company will screw up relaying your complaint to the board, write the directors on the board directly.

JohnC77 (California)
Posts: 562

Posted:

The management company has a contract with the Association, not the Board of Directors, therefore, as a shareholder of the association you could go after the management company.

If you go after the association, there are certain procedures that Civil Code requires a member to follow. There are IDR and ADR. These terms can be found in the Annual Disclosures that associations in California are required to send to their members at least 30 days prior to the end of their fiscal year.

If you want to bring suit against just the MC, then the following procedures need not be followed.

So, in a nutshell, here is the problem. You asked the management company, the board directed the management company and the management company, supposedly, didn't act. At the end of the day, the board has the obligation to manage the HOA.

Your beef is with the HOA.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Sorry people before I get on the "Sue them not them boat" I need MORE details on the slab crack issue. Is this house being built? Is it an already built home? What is the size of the crack? FYI: Slabs do crack and not a "bad" thing necessarily.

Could this be a builder involved thing? Something need to talk to your insurance about? What is the source and cause of this crack?

Former HOA President

FrankM17 (California)
Posts: 3

Posted:

its a 40+ complex it goes across the entire unit. An engineer has come and filed a report which i have not been allowed to view per the Management company, but the board has directed it be released to me. One vendor has informed me that the slab needs to be removed in a section and replaced. I have that from a verbal conversation but no written information.

FrankM17 (California)
Posts: 3

Posted:

JohnC77 (California)
Posts: 562

Posted:

Quote:

Posted By FrankM17 on 09/23/2020 9:39 AM
its a 40+ complex it goes across the entire unit. An engineer has come and filed a report which i have not been allowed to view per the Management company, but the board has directed it be released to me. One vendor has informed me that the slab needs to be removed in a section and replaced. I have that from a verbal conversation but no written information.

The action then needs to be against the association. I am curious as to why the management company is withholding the report even after the board, supposedly, told them to release it.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Did I miss this? Are we talking about condos here? We're assuming the association is responsible for the foundation, but are they?

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