💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

ChrisE8
Posts: 454
Posted:
I certainly do not want to sue my HOA, as I like it, and I don't want my HOA sued.

But out of curiosity, how often are HOAs sued? If so, I would assume that most lawsuits would be about construction or foreclosure issues, I'd guess?

I'd be curious as to your own personal experiences in your own HOA.

Thanks.
AugustinD
Posts: 5,144
Posted:
I think most lawsuits brought by HOAs pertain to collection of assessments from those HOA members who are past due by a lot.

I suspect the second leading category of lawsuits brought by HOAs pertain to violations of covenant-based use restrictions. Said restrictions and challenges to enforcement of same involve everything from fences to unapproved structures to short term rentals to chickens to drainage to flag display to more. By my reading, use restriction disputes are the HOA lawsuits that seem to land in the appeals courts the most often. Maybe this is because the enforcement of use restrictions often involves discretionary decision-making by the Board. HOA members are perhaps more willing to dig in, as defendants, when the members think a Board is being unreasonable in exercising its discretion.
AugustinD
Posts: 5,144
Posted:
I think most lawsuits brought by HOAs pertain to collection of assessments from those HOA members who are past due by a lot.

I suspect the second leading category of lawsuits brought by HOAs pertain to violations of covenant-based use restrictions. Said restrictions and challenges to enforcement of same involve everything from fences to unapproved structures to short term rentals to chickens to drainage to flag display to more. By my reading, use restriction disputes are the HOA lawsuits that seem to land in the appeals courts the most often. Maybe this is because the enforcement of use restrictions often involves discretionary decision-making by the Board. HOA members are perhaps more willing to dig in, as defendants, when the members think a Board is being unreasonable in exercising its discretion.
TimB4 (Tennessee)
Posts: 21,061
Posted:
It costs time, energy and money to bring legal actions.
Typically, unless someone has all of that OR is taking legal action on principal, actual action against HOAs (I think) are very few vs the threats of legal action.

That said, legal action taken by HOAs against members happen a lot.
Mostly, as has already been posted, it's based on lack of assessment payments.

There are a fair number of cases concerning covenant violations brought by HOAs as well.

Do a google search, you will get an idea.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Simply put as I say a million times... Suing your HOA is suing yourself and your neighbors. No way around it. It's going to hurt. So I am NOT in any shape or form saying a lawsuit against your HOA isn't necessary. It is that you are facing consequences for doing so.

It's best to sue your HOA as a class action than individual. However, if you get enough people to join a lawsuit against themselves, why not use those some people to make changes within the HOA to get rid of the board? No need to go to an outside source if can resolve the issues by following the rule book.

Former HOA President
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By MelissaP1 on 12/12/2020 8:12 AM
Suing your HOA is suing yourself and your neighbors.
The OP's post declares the thread is about HOAs suing members. Is a HOA suing a member the same as the HOA suing itself and all members? By your reasoning, yes.
KerryL1 (California)
Posts: 14,550
Posted:
In our HOA's 20 years, we've only sued the developer for construction defects back in '08.

More recently, there was a series ADR in '19 with Owners against the HOA. It was basically settled, but did cost the HOA in increased insurance premiums this year.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
HOA's are ONLY funded by it's members for it's members. So suing your HOA where do you think the HOA gets their money to sue or defend itself in a lawsuit? Even if your answer is "insurance", HOA dues pay for that insurance or deductible. That money is coming from the HOA budget.

So if you can't understand there are consequences to your actions when you file a lawsuit be it a HOA or as a HOA member, then your just hurting everyone. Accept those consequences then you may have a reason to take those actions. That is my litmus test for most valid lawsuits.

My HOA we would not file lawsuits because they are not beneficial. Lien or foreclosure is a better option. A lawsuit has limits. Which means a person can refuse to pay up their settlement and skip town. Nothing holding them to the payments or the HOA if they can sell their home and move. Believe have to renew it every 7 years. Who is going to remember to do that with so many board changes to go pursue? The HOA can't have someone's social security # so collecting from their paycheck will be difficult.

A court can only make one "whole". It rarely would be punitive. The court decides whom collect their legal expenses. You could be left holding the bag for paying for the lawyer and/or court costs if your lawsuit is frivolous.

Former HOA President
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By MelissaP1 on 12/12/2020 10:35 AM
HOA's are ONLY funded by it's members for it's members. So suing your HOA where do you think the HOA gets their money to sue or defend itself in a lawsuit? Even if your answer is "insurance", HOA dues pay for that insurance or deductible. That money is coming from the HOA budget.

Money for the HOA to bring legal action is typically allocated within the budget and, if the Association wins, most of those funds are recouped via the defendent.

Money for the HOA to defend itself is through the insurance.
Regardless if legal action is brought or not, insurance is typically required by law and governing documents.

GregM14 (Washington)
Posts: 81
Posted:
Quote:
Posted By ChrisE8 on 12/12/2020 5:17 AM
I certainly do not want to sue my HOA, as I like it, and I don't want my HOA sued.

But out of curiosity, how often are HOAs sued? If so, I would assume that most lawsuits would be about construction or foreclosure issues, I'd guess?

I'd be curious as to your own personal experiences in your own HOA.

Thanks.

In my opinion, it'd be far cheaper in both time and money to join your HOA board to make whatever change you feel is important rather than to file a lawsuit against the HOA.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Agreed. If you join your HOA's board or get involved in the process it is much better. That is how it is set up to happen.

Insurance is paid for by HOA dues. The deductible has to be paid for the insurance to step in. If the award is greater than what the insurance pays out, that is on the HOA to pay. Our deductible was around 10K for a million dollar coverage. Which if you read the fine print after a possible million dollar suit was filed the pay out is only 80K to the person suing.

The insurance can raise their rates or cancel coverage altogether. Where does that money come from? HOA dues. Which could mean special assessment or raise dues.

Former HOA President

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here