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RobertJ16 (North Carolina)
Posts: 13
Posted:
Our Board of Directors took it upon themselves to vote to build a 6.1 Million dollar building without a vote from the community. We filled suit to stop the process but it has been stalled and moved by their attorney to prolong the process. We have been in a lawsuit since February and will be going to a jury trial sometime in the spring. Wondering if others have had to go to these lengths to take control of communities.

Crit
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By RobertJ16 on 12/18/2025 8:18 AM
Our Board of Directors took it upon themselves to vote to build a 6.1 Million dollar building without a vote from the community. We filled suit to stop the process but it has been stalled and moved by their attorney to prolong the process. We have been in a lawsuit since February and will be going to a jury trial sometime in the spring. Wondering if others have had to go to these lengths to take control of communities.
Is there a reason the owners did not either try a recall or just vote these directors out at the next election?
RobertJ16 (North Carolina)
Posts: 13
Posted:
We have voted to remove twice. The first time we removed 2 board members. The remaining 5 voted in 2 replacements. Of course they were friends of the group. We gathered the 300 signatures to remove then again. To prevent this from happening again, the they voted in a new rule stating that it would take 67% of the community to remove them. That is an impossible # and against the by bylaws. This is a POA with 2500 lots. The POA attorney is paid for by the community and community insurance which obviously we pay on top of our attorney. Right now our legal fees are at $80,000.00. While we represent the community as a whole, currently there are 30 members on the suit.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By RobertJ16 on 12/18/2025 8:41 AM
To prevent this from happening again, the they voted in a new rule stating that it would take 67% of the community to remove them.
I hope the first thing your group's attorney did was file a motion for a court order overriding the above unlawful board move.
RobertJ16 (North Carolina)
Posts: 13
Posted:
I believe we have a good attorney. He tried to stop the construction but they moved ahead full throttle on construction and their attorney move the proceedings to business court 200mi away. By that time the 6.1 million dollar building was almost complete and the injunction was removed. Then we ended up in mediation that was a waste of time and alot of money. Opposing counsel is trying to run us out of money. Sad part of it all is the community is suffering. A few are calling the shots for the board and their sheep are following. We will be heading to trial in June. We are going to stand firm because we believe our bylaws have been violated. We deserved a vote for a project this big.
MichaelS56 (Minnesota)
Posts: 858
Posted:
Robert, doesn't your governing documents have the voting percentage listed. I am curious how they would be able to change the percentage in voting. sounds like a group of Board members that are out of control and are using HOA money for their use. Politics has become an ugly business.
RobertJ16 (North Carolina)
Posts: 13
Posted:
Yes. It was 50 +1. They changed it to 67% of the total. An impossible #. The board illegally changed it with the help of their lawyer. Her actions are also being questioned. We have written the State Bar and the Bar Association. A lot of illegal things are going on. Well, at least questionable.
ElleN (Idaho)
Posts: 1,334
Posted:
I would have thought this case would have ended based on a motion for summary judgment, meaning there is no real dispute as to the facts. The only dispute is how to apply the law.

I wonder what facts the jury will be tasked with determining.
DeanJ
Posts: 1,786
Posted:
This obviously isn’t an average HOA and there are several HOAs in NC with property values of
>$50 million and maybe a hundred with property values >$25 million. How many owners are in this HOA, how much is their income and what is average property value?

RobertJ16 (North Carolina)
Posts: 13
Posted:
This a POA and there are approximately 2500 properties. I am guessing 2000+ are developed. Not that it really matters since every lot gets a vote.
RobertJ16 (North Carolina)
Posts: 13
Posted:
This is going to be an interesting trial. A small group of residence took control during covid and things have snowballed into a conspiracy. It seems as if the judge is really scared to rule on this. Should be easy right or wrong, did you follow the rules or did you violate them.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By RobertJ16 on 12/19/2025 10:33 AM
This is going to be an interesting trial. A small group of residence took control during covid and things have snowballed into a conspiracy. It seems as if the judge is really scared to rule on this. Should be easy right or wrong, did you follow the rules or did you violate them.
One side's lawyer, or both sides' lawyers, asked for, and received, a jury trial. This means the judge only rules on motions. Motions concern the law far more than they concern the facts.

Jury trials are expensive.

The lawyers here must be making a fortune, as is common when a dispute goes all the way to trial.
RobertJ16 (North Carolina)
Posts: 13
Posted:
Our attorney wants the judge to enter a judgement. The POA's attorneys were pushing for a trail. I think they were trying to scare us monetarily. They made us a ridiculous offer and we rejected it in mitigation. We are thinking they are trying to scare us and run us out of money. We are in this for the long haul and asking for a judgement from the judge or trial and damages, to the plaintiffs as well as damages to the community.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By RobertJ16 on 12/19/2025 10:26 AM
This a POA and there are approximately 2500 properties. I am guessing 2000+ are developed. Not that it really matters since every lot gets a vote.

. Actually, it does matter. The expenditure is $2,440 per property. Are you contributing to the cost of the attorney or being a bystander? The POA attorney, regardless if hired by POA or provide by insurance, is not being paid by the board members. That attorney will delay the case while your attorney keeps calling for more money from the willing participants. With each call, that number will decline requiring more from those left. And then, you could lose the case.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By RobertJ16 on 12/19/2025 10:26 AM
This a POA and there are approximately 2500 properties. I am guessing 2000+ are developed. Not that it really matters since every lot gets a vote.

. Actually, it does matter. The expenditure is $2,440 per property. Are you contributing to the cost of the attorney or being a bystander? The POA attorney, regardless if hired by POA or provide by insurance, is not being paid by the board members. That attorney will delay the case while your attorney keeps calling for more money from the willing participants. With each call, that number will decline requiring more from those left. And then, you could lose the case.
RobertJ16 (North Carolina)
Posts: 13
Posted:
Well aware of this. It has already cost alot of money. The plantiffs in this are not going to fold. We have some deep pockets and willing to tow the line.
DeanJ
Posts: 1,786
Posted:
Sounds like a mess with the possibility of a partially completed construction standing for several years as this works through the courts,
RobertJ16 (North Carolina)
Posts: 13
Posted:
Nope. The building is almost done now and we have no choice but to make the payments. They had the grand opening last week. No lights for the parking and they built an outdoor stage for entertainment that has already flooded. It's a mess and residents are finally waking up and HOA does are going to go up though they promised they would not. They used our hurricane emergency fund to pay off existing loans to get the loan for the building. No reserves. This is what happens when you do not hold your board accountable. All we can do now is make sure it never happens again.
ElleN (Idaho)
Posts: 1,334
Posted:
RobertJ16, has the media reported on this lawsuit? I would like to read about it.
RobertJ16 (North Carolina)
Posts: 13
Posted:
We had some media coverage after we voted out the first 2 directors and before the board changed our vote to 67%. Right now we are we really don't want to tarnish the community and are really trying to keep our eyes on the goal. I am sure as we get closer to our court date there will be something. We just want to, "Get our community back" The only reason I am on this site is I need somewhere to vent. It gets stressful but we are standing strong. If something comes out before I will post a link.
RobertJ16 (North Carolina)
Posts: 13
Posted:
If you have time this will give you an idea of what we are dealing with. This was made by one of our residence. We are doing our homework.

https://www.youtube.com/live/VqJbZKmjB_U

ElleN (Idaho)
Posts: 1,334
Posted:
Thank you for sharing the links. I checked out the condominium's governing documents. I also checked out the second amended complaint, dated December 17, 2025.

Quote:
Posted By RobertJ16 on 12/18/2025 8:18 AM
Our Board of Directors took it upon themselves to vote to build a 6.1 Million dollar building without a vote from the community.
When did this board vote (on the construction of a clubhouse) happen?

The judge's December 17, 2025 order says discovery has to be concluded by the end of June, 2026. The trial cannot happen until after discovery.

The plaintiffs appear to be trying to get two things:

1.
an override of the amendment the board made, regarding the owners' percentage required to remove directors.

2.
to nullify all board actions taken after the owners removed certain directors.

Comment by ElleN:

Bylaws, Article V, Section 1 K.5.b. says this:
During any fiscal year, excluding approved Capital Expenditures set forth in the fiscal year budget, the Board, with the affirmative vote of five (5) of the seven (7) Directors, may authorize additional Capital Expenditures not to exceed fifteen percent (15%) of the projected revenues for that fiscal year. Additional Capital Expenditures exceeding the fifteen percent (15%) limit herein shall require approval by the Members at special meeting called by the Board.

I agree the total expenditure is on the order of $2440 per lot ( = $6.1 million / 2500 lots, estimated). I agree the Board has taken (or intends to take) out loans (or a loan) of many years duration. I gather the math says the annual expense for this building spread over many years is in fact 15% or less of annual revenues.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By RobertJ16 on 12/20/2025 8:54 AM
We had some media coverage after we voted out the first 2 directors and before the board changed our vote to 67%. Right now we are we really don't want to tarnish the community and are really trying to keep our eyes on the goal. I am sure as we get closer to our court date there will be something. We just want to, "Get our community back" The only reason I am on this site is I need somewhere to vent. It gets stressful but we are standing strong. If something comes out before I will post a link.

I am all for the community, but so far you seem to lack support. First, the best you could do is recall 2 board members and not the entire board. If my HOA board opted to spend 1/6 the value you provided for an improvement, getting 67% to recall the board would not be a heavy lift.
RobertJ16 (North Carolina)
Posts: 13
Posted:
Again, not 67% of the vote, 67% of the community. Impossible. We are a community full of timeshares and rentals. Many never vote.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By RobertJ16 on 12/22/2025 4:11 AM
Again, not 67% of the vote, 67% of the community. Impossible. We are a community full of timeshares and rentals. Many never vote.

No it isn’t. There are HOAs all over the US that recall boards with a 67% of owners requirement. If this expenditure is as outrageous to your community as you report, with some serious work it would be a lot less expensive than a law suit.
RobertJ16 (North Carolina)
Posts: 13
Posted:
This lawsuit will play out. When it does I will let you know the verdict.
DeanJ
Posts: 1,786
Posted:
I will wager, absent an injunction, the construction is completed before you get to trial. After this project is completed, you may find the community actually supports the boards actions.
JackS20 (North Carolina)
Posts: 271
Posted:
i agree getting 2/3rd of 2500 owners to agree on anything is very hard, especially with a lot of non residents! People that say other wise, probably live in totally different type of HOA. Please keep us updated. I hate boards that are not democratic and prevent people from voting who they want on the board. I hope they get their ass handed to them. It sucks the building was made!
ElleN (Idaho)
Posts: 1,334
Posted:
Folks should know that this is one of those HOAs with massive amenities, such as golf, a harbour, a marina, swimming pools and more.

The Declaration speaks of clubhouses. It's not like this idea of building a clubhouse was out of the blue, IMO.

Per the wording in the declaration, I have doubts that the Board vote on the clubhouse, and the (ongoing?) construction of the clubhouse, were illegal.

Proving in court that the vote on, and construction of, the clubhouse was illegal is not a battle I would want to undertake. Maybe this is why the OP and his fellow co-plaintiffs have not sued over the latter issue.
JackS20 (North Carolina)
Posts: 271
Posted:
Quote:
Posted By ElleN on 12/22/2025 4:41 PM
Folks should know that this is one of those HOAs with massive amenities, such as golf, a harbour, a marina, swimming pools and more.

The Declaration speaks of clubhouses. It's not like this idea of building a clubhouse was out of the blue, IMO.

Per the wording in the declaration, I have doubts that the Board vote on the clubhouse, and the (ongoing?) construction of the clubhouse, were illegal.

Proving in court that the vote on, and construction of, the clubhouse was illegal is not a battle I would want to undertake. Maybe this is why the OP and his fellow co-plaintiffs have not sued over the latter issue.

but modifying the bylaws was definitely illegal and no one wants a board that is on a power trip. this board is gonna loose and get kicked out and then everyone's gonna see they blew $250K or more on legal on this BS.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By JackS20 on 12/22/2025 5:51 PM

but modifying the bylaws was definitely illegal
I agree. I expect at some point during (or immediately following the completion of) discovery the plaintiffs' attorney will motion for summary judgement.

Quote:
Posted By JackS20 on 12/22/2025 5:51 PM
and no one wants a board that is on a power trip. this board is gonna loose and get kicked out and then everyone's gonna see they blew $250K or more on legal on this BS.
This is a huge, expensive HOA. I figure the lawyers here have already computed that $250k (or similar high numbers) divided among some 2500 lots is a pittance for each lot.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By JackS20 on 12/22/2025 5:51 PM
Posted By ElleN on 12/22/2025 4:41 PM
Folks should know that this is one of those HOAs with massive amenities, such as golf, a harbour, a marina, swimming pools and more.

The Declaration speaks of clubhouses. It's not like this idea of building a clubhouse was out of the blue, IMO.

Per the wording in the declaration, I have doubts that the Board vote on the clubhouse, and the (ongoing?) construction of the clubhouse, were illegal.

Proving in court that the vote on, and construction of, the clubhouse was illegal is not a battle I would want to undertake. Maybe this is why the OP and his fellow co-plaintiffs have not sued over the latter issue.


but modifying the bylaws was definitely illegal and no one wants a board that is on a power trip. this board is gonna loose and get kicked out and then everyone's gonna see they blew $250K or more on legal on this BS.

Assuming the bylaws were illegally modified. Just because an owner gives their interpretation of the documents doesn’t mean it’s the legal interpretation,

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