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JohnM102 (Arizona)
Posts: 24
Posted:
I just went through a legal dispute against our HOA for the illegal manner in which the election of Officers was conducted. The two individuals that orchestrated the illegal takeover assumed the President (Pres) and Vice President (VP) positions. Then the Pres gave herself the Treasurer position. In the course of my 10 weeks of trying to get the election of Officers overturned, these two individuals, without consent of the 3 other Board members, spent over $5,000 of Association funds misrepresenting facts to the Association Attorney. Once my Attorney gave the Association Attorney the true fact, the Association Attorney declared the election of Officers was illegal and had to be redone.

In the do over, neither of the two were elected as the Pres, VP, or Secretary. Infact, the individual that had illegally been given the Pres position and awarded herself the Treasurer position resigned from the Board all together. The individual that had been given the VP position opted just to serve as a director. I wish I could say all has gone well since then but the individual that chose just to be a director, has made it near impossible to get things done. Anytime he is sent documents for possible comments, he declines to do so. In fact, he is now demanding the right to get legal rulings on issues he is the lone member of the five that interprets things to his liking. Both him and the previous Pres even refuse to accept the Association Attorneys ruling. they both want her resignation overturned despite having asked to have her decision included in the minutes. This leads me to three questions:

1. Since the individual director, that has not accepted any responsibility, was elected as one of five directors in the actual election of directors, is there any way to remove him from the Board other than by a recall of the members that elected him? As anyone that's ever been involved in a recall knows, doing so is difficult due the lack of concern of members that never attend meetings. To make matters even worse, 60 of our 100 lot owners are vacant with most owners living out of State. Of the 40 lots built on, only about 12 individuals attend meetings. In total 11 of those 12 members were part of takeover. Since 2011, 11 members of which 4 are couples have made it impossible to effectively manage this tiny HOA. All director positions are volunteers and the balance of homeowners that never attend don't because of being intimidated by those 11 individuals.

2. How do you determine the proper interpretation of Governing Documents when there is a 4 to 1 agreement against him? He insists everything has to be unanimous. If not, then we have to go to our Attorney for a ruling. The four members disagreeing with him have years of experience while this is his first time to serve on an HOA. He has 100 days of experience most of which was spent misrepresenting facts to the Association Attorney. As far as the four of us are concerned, a 4 to 1 vote overrules him. Especially when the things he disagrees with are well spelled out.

3. What are your rules for going to the Association Attorney for his ruling when the dissenter is out voted 4 to 1?

The 4 of us are well versed in the rules of the Association and the State of Arizona. I'm looking for how you have managed a situation like this if you've been unfortunate enough to have experienced situations like ours.
AugustinD
Posts: 1,027
Posted:
With reference to an Arizona HOA (not a COA) --
Quote:
Posted By JohnM102 on 09/10/2022 4:14 PM
1. Since the individual director, that has not accepted any responsibility, was elected as one of five directors in the actual election of directors, is there any way to remove him from the Board other than by a recall of the members that elected him?
I see nothing in this person's conduct that, under Arizona statutes, would permit removing this director by anything other than an owners' recall.
Quote:
As anyone that's ever been involved in a recall knows, doing so is difficult due the lack of concern of members that never attend meetings. To make matters even worse, 60 of our 100 lot owners are vacant with most owners living out of State. Of the 40 lots built on, only about 12 individuals attend meetings. In total 11 of those 12 members were part of takeover. Since 2011, 11 members of which 4 are couples have made it impossible to effectively manage this tiny HOA. All director positions are volunteers and the balance of homeowners that never attend don't because of being intimidated by those 11 individuals.
I think you are assigning blame incorrectly. It's the owners who are at fault here. The owners choose to let these particular people run the HOA. They choose to be intimidated. I know you are not satisfied with this. But fact: These other folks, who do not try to get new directors or let themselves be intimidated, are making the choice to accept boobs here and there as directors.

There is likely little you can do about apathy.
Quote:
2. How do you determine the proper interpretation of Governing Documents when there is a 4 to 1 agreement against him? He insists everything has to be unanimous.
Why do you believe him? Has he provided a citation to a bylaw or state statute?

For meetings of the board, there is no requirement that decisions be unanimous.

If per chance you are referring to actions taken without a meeting, then Arizona may very well have a requirement that the vote must be unanimous (along with other requirements). Ask more about this and I will check.
Quote:
If not, then we have to go to our Attorney for a ruling. The four members disagreeing with him have years of experience while this is his first time to serve on an HOA. He has 100 days of experience most of which was spent misrepresenting facts to the Association Attorney. As far as the four of us are concerned, a 4 to 1 vote overrules him. Especially when the things he disagrees with are well spelled out.
The amount of experience people have is irrelevant. Under Arizona law (and any state's law, for that matter), and with quorum met, a vote of a board majority at a board meeting controls.
Quote:
3. What are your rules for going to the Association Attorney for his ruling when the dissenter is out voted 4 to 1?
The rule? The rule is, "The majority rules. The majority orders that there will be no attorney consult on this matter."
Quote:
The 4 of us are well versed in the rules of the Association and the State of Arizona.
Respectfully, I think you all are novices. (Someone else will jump in and play good cop to balance out what I just wrote.)

I suggest tattooing the following on each of your foreheads:

1. Except when a HOA decision is reserved to the owners en masse, the Board makes decisions about HOA operations.

2. "Board" is not synonymous with "one director."

3. A "Board decision" is any decision to which a majority of a quorum the directors assent at an open meeting, via a motion, a second, discussion, and a vote.

4. Every time Director Boob (you know who I mean) asserts anything that contradicts 1 to 3, Director Boob will be ignored. The other directors' time is valuable. He has wasted enough of the board's time.

If tattooing does not work, have the HOA attorney put the above in writing in a letter. Bring it to each meeting.
JohnT38 (South Carolina)
Posts: 1,631
Posted:
"4. Every time Director Boob (you know who I mean) asserts anything that contradicts 1 to 3, Director Boob will be ignored. The other directors' time is valuable. He has wasted enough of the board's time."

This is the best advice you are going to get. Ignore this person.
KerryL1 (California)
Posts: 14,550
Posted:
With all of your joint experience, why in the world do you think Boob's one vote is decisive? I'm baffled why you believe him. Read Aug's #3 over & over & over.

If decisions made online must be unanimous (which is common), do not conduct business online. Meet in person or on Zoom.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
JohnM

Why are you letting one director intimidate you so much? A BOD should agree when advice from their attorney is needed. If this one director goes after such alone, the attorney should bill him personally.
DavidG45 (Delaware)
Posts: 994
Posted:
I am going to pile on here. At meetings you discuss an issue, then the President calls for a vote. The jerk is outvoted, the Secretary notes that the measure passed, and you move on to the next item.

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