πŸ’¬ Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account β†’

⚑ Takes 30 seconds

Already a member? Log in

DanielS15 (Georgia)
Posts: 48
Posted:
Hello!
A few of us recently got together, hired an attorney, and forced our Board to have a special election. This action was taken due to their non-compliance / non-actions on many issues. The special election was held and the old Board was replaced. Everything is moving along well - except we have an individual that is requesting reimbursement for their part of the legal fees.
Their request is going to the new Board for reimbursement. Is this the responsibility of the new Board or should this be a separate action taken against the previous Board? (Our community is in Georgia and no on else is requesting reimbursement)

As always, your input here is greatly appreciated.
Thank you
TerriS6 (California)
Posts: 3,284
Posted:
In California, if this had been taken to court, the court would have required the association to reimburse your legal fees since you won. If Georgia requires elections, you could possibly go to court for an order to reimburse fees.
TerriS6 (California)
Posts: 3,284
Posted:
The previous board has no standing now.
CathyA3 (Ohio)
Posts: 6,299
Posted:
The person who wants to be reimbursed will need to take some form of legal action - keeping in mind that the outcome is not guaranteed and legal expenses can often outweigh any benefit that results.

Suing the HOA will often have unintended consequences. Insurance premiums may rise as a result, even beyond the steep increases were seeing right now. Assessments will rise to cover legal and insurance costs. Your neighbors will have Thoughts and Opinions when they discover that you're to blame for the increase - and this sort of news always gets out. Many of the plaintiffs in HOA lawsuits end up selling their homes when they discover how unpleasant it is to live in a community where everyone is mad at you. The merits of the lawsuits have no bearing on this. The most unpleasant outcomes can occur in cases where the plaintiffs are totally in the right and the HOAs are egregiously wrong.

Ya pays yer (own) money, and ya takes yer chances.
TerriS6 (California)
Posts: 3,284
Posted:
And there is probably nothing in the governing documents that would allow reimbursement by the board.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
This is one of the reasons I always state: Suing your HOA is suing yourself and your neighbors. This is a CONSEQUENCE of the actions RIGHT or WRONG. Again stating you may be 100% correct in your lawsuit BUT this is still the consequence.

Also if it was a group of owners, then that is amongst each other if one gets money back or it's the price paid to take the action. It isn't like you used HOA money to hire the attorney. You as a group decided amongst yourselves to hire the attorney. That makes it a PERSONAL issue not a HOA one.

So even if they requested reimbursement from the HOA, the HOA didn't pay anything into the suit. They are asking EVERY member now to reimburse their expenses. Is that fair that the others whom contributed money not recieve the same?

BTW: One can claim this on their taxes possibly if it was on investment property. Such as they owned their HOA as rental property. The legal expense may be a write off. It is NOT if it's your main residence.

Former HOA President
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By DanielS15 on 09/17/2023 6:16 AM
Hello!
A few of us recently got together, hired an attorney, and forced our Board to have a special election. This action was taken due to their non-compliance / non-actions on many issues. The special election was held and the old Board was replaced. Everything is moving along well - except we have an individual that is requesting reimbursement for their part of the legal fees.
Their request is going to the new Board for reimbursement. Is this the responsibility of the new Board or should this be a separate action taken against the previous Board? (Our community is in Georgia and no on else is requesting reimbursement)
I advise: Ask the owner to cite the covenant, bylaw or state statute section that asserts the HOA is required ​to reimburse him for the legal fees spent to make the special election happen. Whatever he cites had better expressly speak of "attorney's fees."

If no such covenant, bylaw or state statute section exists, then the board lacks the authority to use HOA funds to pay for the attorney fees of a party that was adverse to the HOA. Indeed, doing otherwise would likely violate the covenants (contractual terms) for how the Board may spend owners' money.

I would not consult outside counsel for this. I suggest the board simply tell this owner that the board lacks the authority to approve this reimbursement.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
As ellen said, "the BOD lacks the authority to do this." If s/he keeps asking, tell them to show where in the Covenants it says the BOD can pay. Also, even though the action was against the HOA, it was not an HOA action. It was a private action by a group of people.
DouglasK1 (Florida)
Posts: 2,046
Posted:
I agree with the other responses, no reimbursement unless a court awards legal fees.

Escaped former treasurer and director of a self managed association.
SheliaH (Indiana)
Posts: 6,964
Posted:
Y'all didn't think about this when you decided to go ahead with the lawsuit?? Oh, well. Seems to me someone should have asked the attorney about getting reimbursed for legal fees if you won - in any lawsuit, people ask for legal fee reimbursement in addition to whatever else they want in the lawsuit.

The group got what it wanted and this homeowner should have realized from the start lawsuits and attorneys aren't cheap. Sometimes you have to learn the hard way....

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
LizD3 (California)
Posts: 200
Posted:
If it helps any, most everyone here swore I would not be reimbursed for an emergency HOA expense I paid for (no one else was home). It was a battle, but I was reimbursed. In full. So don’t let anyone here dissuade you if you want to try.

Good luck.
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By LizD3 on 09/20/2023 3:27 PM
If it helps any, most everyone here swore I would not be reimbursed for an emergency HOA expense I paid for (no one else was home). It was a battle, but I was reimbursed. In full. So don’t let anyone here dissuade you if you want to try.

Good luck.

πŸ‘
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Should be noted the legal expenses here did not involve the HOA money. It involved neighbors putting up money together. If anyone is to give money back it is the others who collected the money. Not the HOA.

Former HOA President
LizD3 (California)
Posts: 200
Posted:
It should also be noted that this was a legitimate and clearly required expense to ensure that a legitimate legal and CC&R obligation was upheld now, and if the Board is smart, hereafter.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
And that came with a price to pay. Sorry your not due money back once you pay for a service. Which was the lawyer's work. You don't ask money back from your doctor once you are better do you? The lawyer did their job. Pay the man or woman.

BTW: I been in a similar situation where me and a few other neighbors went in together to get a lawyer. We forced the HOA to take the required vote for a special assessment. Once they did that, we did not go to the lawyer or the HOA to ask for our money back. You kicked in the money with your fellow neighbors. It's the expense you had to pay to get what you wanted.

Former HOA President
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By MelissaP1 on 09/20/2023 5:45 PM
And that came with a price to pay. Sorry your not due money back once you pay for a service. Which was the lawyer's work. You don't ask money back from your doctor once you are better do you? The lawyer did their job. Pay the man or woman.

BTW: I been in a similar situation where me and a few other neighbors went in together to get a lawyer. We forced the HOA to take the required vote for a special assessment. Once they did that, we did not go to the lawyer or the HOA to ask for our money back. You kicked in the money with your fellow neighbors. It's the expense you had to pay to get what you wanted.

Melissa, please get on the record and answer this question: is there ever a legitimate reason to take legal action against an HOA?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Sure there is 100%. Except you have to accept and recognize the FACT you are suing yourself and your neighbors. That is a CONSEQUENCE right or wrong. Don't think your lawsuit isn't going to wag tongues, people turn against you, not support you, and overall complain about the damage you are doing by filing a lawsuit.

I did not sue my HOA but I did have to correct a bad rules process. Me and a few other neighbors got together and hired a lawyer. The lawyer wrote the HOA a letter on how to properly do the special assessment. They complied. We lost the vote. The special assessment went through. The good news was that they did comply with the rules to get the special assessment passed.

What I did not say is how I found out the way they got the vote was by telling lies about me. They told different stories to multiple people to put me in a bad light. Even got physically attacked at a meeting over it all. Yada Yada... Oh my! My response? Held my head up high and walked off. I didn't care what was said. It wasn't me or my truth. 6 months later after all was said and done... Most of the people came up to apologize to me. They told me what was said about me and by who. (I already knew). I accepted their apology. They learned a valuable lesson. After that people were "woke" to what was going on and showed up to meetings. I sold my house and left... Got better things to do with my time and energy. It ain't living with people I don't like to be around.

Former HOA President

🎯 You've read this entire discussion

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

  • βœ“ Ask follow-up questions
  • βœ“ Share your experience
  • βœ“ Get expert advice
  • βœ“ Access 350,000 discussions
Create Free Account β†’

⚑ Takes 30 seconds

Already a member? Log in here