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Homeowners who threaten to sue

Started by BarbaraD12 • 25 replies • 485 views

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BarbaraD12 (Washington)
Posts: 24
Posted:
We have a homeowner who threatens board members with a lawsuit when she receives notification that she is in violation of association rules. She claims that she is being harassed. Can our management company advise her that she is not to have any communication with board members or do we need a letter from our attorney? We live in a small community and she is hard to avoid.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By BarbaraD12 on 07/27/2024 11:27 AM
We have a homeowner who threatens board members with a lawsuit when she receives notification that she is in violation of association rules. She claims that she is being harassed. Can our management company advise her that she is not to have any communication with board members or do we need a letter from our attorney? We live in a small community and she is hard to avoid.

sure but be careful because some mgt contracts charge the HOA a rather large fee to coordinate any legal matters like $150 per incident.
might be better to just email the person yourself with a generic form letter like the one below:

[Your Name]
[Your Position, e.g., HOA President]
[HOA Name]
[HOA Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]

[Member's Name]
[Member's Address]
[City, State, ZIP Code]

Dear [Member's Name],

Subject: Response to Your Legal Threat

I hope this letter finds you well. We have received your recent communication expressing your intention to pursue legal action against the [HOA Name] Board.

We take all concerns from our members seriously and aim to address them in a manner that is both fair and compliant with our governing documents and applicable laws. To ensure that we handle this matter with the appropriate level of attention and expertise, we kindly ask you to direct any legal correspondence or inquiries to our HOA attorney.

Our legal representative, [Attorney's Name], is best equipped to provide the necessary legal guidance and facilitate any discussions regarding your concerns. Please find the contact details for our attorney below:

[Attorney's Name]
[Attorney's Firm Name]
[Attorney's Address]
[City, State, ZIP Code]
[Attorney's Email Address]
[Attorney's Phone Number]

We believe that involving our attorney at this stage will help in resolving the matter efficiently and professionally. Should you have any immediate concerns or questions that you wish to address directly with the Board, please feel free to contact me at [Your Email Address] or [Your Phone Number].

Thank you for your attention to this matter. We appreciate your cooperation and look forward to resolving this issue amicably.

Sincerely,

[Your Name]
[Your Position]
[HOA Name]
vis ta vie
TimB4 (Tennessee)
Posts: 21,062
Posted:
Companies do it all the time.

When someone threatens legal action, simply reply:

That is your right. Since you have threatened legal action and escalated the issue, our attorney has advised that neither the board nor the management company should discuss the issue with you further. Please resolve the issue.

If they persist, simply respond:

The Association is willing to discuss any other issue with you. However, as you were informed, due to the threat of legal action our attorney has advised that we do not discuss the issue with you until the intended legal action is resolved OR you can simply resolve the issue of xyz violation.

That's it.
GregoryT1
Posts: 315
Posted:
hi Barbara - this is more of a curious question. Do you have a ADR/IDR process in you assn?
KerryL1 (California)
Posts: 14,550
Posted:
It appears Wendy is using an AI- generated letter and, imo, should cite it as such. And, if so, it is wrong to suggest to the owner that she contact the HOA's general counsel. The HOA attorney works for the association and does not advise any individual owners.

I like Tim's suggestion a lot. Or, I'd s think that the Board in executive session could vote that only the PM will receive and reply to Ms. xxx.

Is this violator refusing to correct her violations, Barbara? Has she been given fair due process as required in your documents and state? I.e. are there requirements that she must be able to argue her point of view at an executive session meeting with the Board??

What size is your HOA?
KerryL1 (California)
Posts: 14,550
Posted:
It appears Wendy is using an AI- generated letter and, imo, should cite it as such. And, if so, it is wrong to suggest to the owner that she contact the HOA's general counsel. The HOA attorney works for the association and does not advise any individual owners.

I like Tim's suggestion a lot. Or, I'd think that the Board in executive session could vote that only the PM will receive and reply to Ms. xxx.

Is this violator refusing to correct her violations, Barbara? Has she been given fair due process as required in your documents and state? I.e. are there requirements that she must be able to argue her point of view at an executive session meeting with the Board??

What size is your HOA?
LetA (Nevada)
Posts: 2,679
Posted:
Call their bluff

Let them, Tell them this, I can't talk to you anymore, have your attorney contact our attorney.
If the person threatening to sue complains that the board won't communicate with them. Simply say the party
threatened to sue us, and since they said lawyer, we can't say anything on the advice of our council.

SheliaH (Indiana)
Posts: 6,964
Posted:
What Tim and LetA said.

You will always have people yell about receiving violation letters and threaten to sue, but you have to follow your procedures. If you've already referred the matter to the attorney, send a letter announcing that and say any further questions regarding the matter shoukd be referred to the attorney (who shoukd receive a copy of the letter.) If xhe approaches any board member, emails, phone calls, etc., politely but firmly rrmind her and walk away or hang up. Emails can be forwarded to the attorney.

If she comes to the meeting and tries to bring it up, remind her again. If she becomes disruptive, ask her to leave and escort her out if necessary. Tell the attorney about that too.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By KerryL1 on 07/27/2024 1:28 PM
It appears Wendy is using an AI- generated letter and, imo, should cite it as such. And, if so, it is wrong to suggest to the owner that she contact the HOA's general counsel. The HOA attorney works for the association and does not advise any individual owners.

intended to be sent by board. if people cant' tell that is AI generated then they need to get their head out of the sand.
vis ta vie
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By KerryL1 on 07/27/2024 1:28 PM
It appears Wendy is using an AI- generated letter and, imo, should cite it as such. And, if so, it is wrong to suggest to the owner that she contact the HOA's general counsel. The HOA attorney works for the association and does not advise any individual owners.

intended to be sent by board.obviously AI generated.
vis ta vie
KerryL1 (California)
Posts: 14,550
Posted:
Your suggestion, Wendy, your wrote the the the Board send the following, in part, TO the woman who threatened to sue. "Please find the contact details for our attorney below:
[Attorney's Name]
[Attorney's Firm Name]
[Attorney's Address]
[City, State, ZIP Code]
[Attorney's Email Address]
[Attorney's Phone Number]"

It is common courtesy for ANYone to cite sources that aren't their own thinking. To accuse readers here who may not be familiar with AI is unfriendly & insulting.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By KerryL1 on 07/27/2024 6:00 PM
Your suggestion, Wendy, your wrote the the the Board send the following, in part, TO the woman who threatened to sue. "Please find the contact details for our attorney below:
[Attorney's Name]
[Attorney's Firm Name]
[Attorney's Address]
[City, State, ZIP Code]
[Attorney's Email Address]
[Attorney's Phone Number]"

It is common courtesy for ANYone to cite sources that aren't their own thinking. To accuse readers here who may not be familiar with AI is unfriendly & insulting.

yeah the board should send it. why pay an attourney $160 just to send a letter to contact them.

The AI letter is fine, if anyone wants to revise it that is fine too. not gonna get into an agument about why I need to cite source it's a generic letter.
vis ta vie
LetA (Nevada)
Posts: 2,679
Posted:
Quote:
Posted By WendyM5 on 07/27/2024 6:19 PM
Posted By KerryL1 on 07/27/2024 6:00 PM
Your suggestion, Wendy, your wrote the the the Board send the following, in part, TO the woman who threatened to sue. "Please find the contact details for our attorney below:
[Attorney's Name]
[Attorney's Firm Name]
[Attorney's Address]
[City, State, ZIP Code]
[Attorney's Email Address]
[Attorney's Phone Number]"

It is common courtesy for ANYone to cite sources that aren't their own thinking. To accuse readers here who may not be familiar with AI is unfriendly & insulting.


yeah the board should send it. why pay an attourney $160 just to send a letter to contact them.

The AI letter is fine, if anyone wants to revise it that is fine too. not gonna get into an agument about why I need to cite source it's a generic letter.

When the complaining party gets a bill for shouting the A word, they will quickly learn.
TerriS6 (California)
Posts: 3,284
Posted:
No you cannot prevent homeowners from communicating with board members unless an individual board member obtained a restraining order for a valid reason. The board member does not have to respond but at his own risk.
TerriS6 (California)
Posts: 3,284
Posted:
Leave the attorneys out of it. Board members who run to the attorney for every whisp of wind do the association a disservice. Board members forget too often that the attorney is not being paid with their own money.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By TerriS6 on 07/28/2024 7:25 AM
Leave the attorneys out of it. Board members who run to the attorney for every whisp of wind do the association a disservice. Board members forget too often that the attorney is not being paid with their own money.

amen! I've got an amazing HOA legal reference book for NC and I've seen them for Texas, CA, and other states. I find there is very little reason to rely on an attourney as most basic HOA legal issues have alreaady been answered. the 2 I have used were absolute garbage giveing wrong ow poor advice and charging whatever they felt like because they know most boards wont' push back.
vis ta vie
JohnC46 (South Carolina)
Posts: 14,265
Posted:
The BOD can send a simple letter saying as you have threatened legal action, we have turned the issue over to our attorney. Please direct any future correspondence on this issue to our attorney.

This often calls someone's bluff.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Quote:
Posted By BarbaraD12 on 07/27/2024 11:27 AM
We have a homeowner who threatens board members with a lawsuit when she receives notification that she is in violation of association rules. She claims that she is being harassed. Can our management company advise her that she is not to have any communication with board members or do we need a letter from our attorney? We live in a small community and she is hard to avoid.

Yes. The property manager should be placed between your board and this homeowner. The board should not engage on the controversial business except through the property manager, who is a professional 3rd Party. If escalated, an attorney would be hired and not even the property manager would engage with the homeowner. The homeowner, when they approach, should be immediately guided to the property manager with no further contact. However, courtesy chat would be fine.

Meanwhile, keep enforcing your HOA rules as you would on yourselves and any other owner. The whole community is bound by the same terms.
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By JohnC46 on 07/28/2024 10:21 AM
The BOD can send a simple letter saying as you have threatened legal action, we have turned the issue over to our attorney. Please direct any future correspondence on this issue to our attorney.

This often calls someone's bluff.

Then you are committing the board to pay all attorneys fees incurred by this member when they contact, and get responses from, the association's attorney.
KerryL1 (California)
Posts: 14,550
Posted:
Agree (as is often!) with Kelly.

Not with JohnC.Onwrs should v never bee invited by the Board to contact the HOA attorney for a few reason. Terri gives one.
KerryL1 (California)
Posts: 14,550
Posted:
Agree (as is often!) with Kelly.

Not with JohnC. Owners should never be invited by the Board to contact the HOA attorney for a few reasons. Terri gives one.
MarshallT (New York)
Posts: 414
Posted:
Yes, the management company can take care of this by letting the owner know she can proceed with legal action, but the board will be unable to discuss the matter and will direct the issue to the HOA attorney if legal action is required.
TimB4 (Tennessee)
Posts: 21,062
Posted:
I'm sorry, DO NOT INVOLVE ATTORNEY's AT THIS TIME.

Wait until the Association actually has legal action filed against them

No need to provide the attorney's contact info. Any contact will cause the Association to incur legal fees because the attorney would be acting on the Associations behalf.
Wait until (IF) legal paperwork is delivered to the registered agent (which is how legal paperwork would be sent).

Typically, the individual is bluffing and simply saying that they will bring legal action hoping you back down.
Let them spend the money for their attorney to tell them there is or is not a case.

The Board should simply get paperwork and documentation together and wait to see if their Attorney tells them that someone filed legal action.
DeanJ
Posts: 1,786
Posted:
Just because an owner sends a letter or email doesn’t mean the board has to respond. An owner sent a violation letter likely has appeal rights in your declaration. If they opt to respond to the violation letter with legal threats, preserve the communications and call it a day.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
One thing to consider....if you invite a homeowner to call the HOA attorney, the attorney is likely to bill the time back to the HOA for payment. I've had this happen in our board business.

The person, to my knowledge, wasn't trying to run up expenses on the HOA, they were trying to haggle or negotiate their issue. The bill immediately made us revise our approach.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By KerryL1 on 07/28/2024 6:32 PM
Agree (as is often!) with Kelly.

Not with JohnC. Owners should never be invited by the Board to contact the HOA attorney for a few reasons. Terri gives one.

Most people will back away on their threat if they think legal action will happen.

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