Independent Board Member Threatens Small Claims on "personal loss of funds"

Started by SuzyC • 7 replies • 1180 views

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

⚡ Takes 30 seconds

Already a member? Log in

SuzyC
Posts: 36

Posted:

My HOA board recently had approved a cable installation project and this was completed a few weeks ago. The installation was a freebie from Verizon internet services for FiOs. Fiber Optic technology/ cables was ran through our 60 units. It took about 2 weeks of so.

One of the board members "spear headed " the project as he said independently without much interaction or communication to us.. the rest of the board.

This board member presented the HOA last night with a stack of receipts as he took it upon himself to expense lunch daily to the vendors for a total of 2 weeks.. 10 days.. 10 lunches.. all in the excess of $>300. He brought it to the table for approval. Which was flatly denied... for good reason. He acted without approval of the board.

He threatened a small claims lawsuit only after he seeks counsel from his attorney! We don't have a due process for such actions.. frivolous spending on behalf of the board. Should it be somewhere in our bylaws?

GlenL (Ohio)
Posts: 5,491

Posted:

IMO no as a member of the BOD he should know that unless the spending was authorized by the BOD it will not be paid for; unless you've paid for similar things in the past, then that's a whole nother kettle of fish.

Studies show that 5 out of 4 people have problems with fractions

BruceF1 (Connecticut)
Posts: 2,535

Posted:

He has no right to take it upon himself to spend association funds without the approval of the board, no matter how many receipts he has.

Thank him for his generosity.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

I think I would make a motion at a Board meeting, that he be served with a letter of censure from the Board. How strong you make it will be up to the Board.
If you don't do this and word gets out, which it will, you may be considered by some as a Board out of control. If he wants to resign, accept his resignation.

SharonM3 (Virginia)
Posts: 23

Posted:

It's not "frivolous spending" by the board unless/until the board approves it. And if the board approved it, I'd make sure that my vote "nay" was recorded. If you want to let him hang himself, let him do it on the record by making a motion to have the assn pay for this. Make sure somebody seconds the motion - it does not mean the seconder is voting for it, but rather that this allows for discussion and the ultimate vote. Ideally, this board member would be the only one voting for it, all the others against it, and it becomes part of the official record - to which all association members have access! So even if he doesn't resign right now, you can work to get somebody to replace him when his term expires.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

SharonM3,
I want to complement you on your strategy. Some people misunderstand the meaning of seconding a motion and believe, incorrectly, that they must be in favor of a motion in order to second it. Only the person who introduces a motion has to speak in favor of it. A person may wish to second a motion because he or she believes the motion will be defeated and wants the assembly to go on record as being opposed to it.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

SuzyC: Based on your other posted concerns, it sounds like this Board does not know how to communicate effectively which will greatly impact the governing of your association.

You state ..."My HOA board recently had approved a cable installation project and this was completed a few weeks ago." What portion of the 'installation' did the Board give its approval for per your statement. Board business must be discussed and voted on by the Board PRIOR to any decisions (charges) being levied on behalf of the association.

With you as a veteran Board member holding past terms on the Board, what is the problem here that the Board members do not (or will not) meet, review/discuss and come to an understanding of what action will be taken.
Each Board member holds a responsibility to function in this manner. The errant Board needs to get their act together and work as a unit. Until that time, it will be almost impossible to accomplish anything for the good of the community.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Just a comment on Pauls post. I think his observations are awful close to being on target and offere good food for thought. This business of the BOD not acting or not controling the members is a double edge sword. It is counterproductive for one thing and it is also destructive to the associations. I don't think a lot of people give a thought to what happens when the train is not running on the right track. It is still speeding along but now you have to not only change direction you have to go back, while the train is still running and right wrongs. This makes the problem of getting ahead of the curve that much harder and money and time are spent because mistakes that were made in the past hang around like a hungry dog. Decisions made today set the tone for the future of the HOA.

🎯 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