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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

RobertG (Arizona)
Posts: 505
Posted:
This is more of a strict legal question than HOA, but it has a bearing on the HOA.

Can the HOA sue a vendor for something that was done wrong to the property of a number of homeowners.

Hypothetically (for discussion), assume you have 500 individual homes in the HOA. Each homeowner has title to the lot they live on so they really do own their property. Assume the HOA's Landscape vendor has a faulty piece of equipment and ends up damaging 100 homes along a street - maybe throws a rock through the window breaking the front window of the 100 homes(remember this is hypothetical so give me a bit of leeway on reality).

Do you think the HOA can sue the landscape company to get them to replace the windows of the 100 homes? I don't think so and my argument is that the HOA is not the injured party therefor they don't have any legal standing in the suit. Only the homeowners can sue the landscape company and that would be outside the scope, or interest, of the HOA. Would you agree?

Based upon comments, I might change the damage scenario but I want to keep it simple to start with.
BrianB (California)
Posts: 2,820
Posted:
As my old dad would have told me, Anyone can sue anyone in the US of A. To Sue means to file a suit, and anyone can file a suit (sue) anyone else, for any reason.

With that out of the way, the real question you are asking is "Will such a suit be even remotely successful?". I can think of two possible answers: One, like you state, the HOA itself has no losses, so there is nothing for the HOA to recover. THe court will not grant money to the HOA to fix individual owner's windows... would YOU want a court giving John Smith the money to fix YOUR broken window?

However, there is the spectre of "who hired the landscaper" in the first place... The HOA is responsible for the hiring of the landscaper, and if they have deeper pockets, the HOA COULD be named in the suit to recover damages. If so, then the HOA does have a tortable loss (the money they lose), and could sue the landscaper for recovery. Probably, both businesses would be named, if I were filing. If you consider the HOA to be financially responsible for the actions of their contractors (a controlling mgt situation), then the HOA would indeed be on the hook for the damages. IT depends on how the contract with the company is written... and since most HOA's probably don't have detailed contracts to indemnify everyone, I would say there's a chance a judge could rule either way.

Is there a clear business presence with this landscaper? Are they established? Did the HOA make sure they had insurance coverage? If the answer is "yes" to all, I think the landscaper is fully on the hook. If the answer is "no" or "what? Huh?", then the HOA could be partially liable for the actions of their (independent) employees.

great question!
RobertG (Arizona)
Posts: 505
Posted:
I am going to stipulate for the record (Legal sounding) that the HOA is in no way responsible so we don't need to talk about suing the HOA. I could change it to the city landscape maintenance company that is part of city services just to break the association with the HOA.
BrianB (California)
Posts: 2,820
Posted:
in that case, i agree... the HOA has no losses to recover. Without some form of damage, there can't be a suit.

GlenL (Ohio)
Posts: 5,491
Posted:
Of course for a definitive answer to your question, you should consult an attorney as most everyone here is not one and cannot offer legal advice. Well at least I am not an attorney and am not offering legal advice. I only saw one person admit to being one here and he quickly disappeared.

IMO - If the HOA hired the landscaper in your first scenario then there should be something in the contract to the effect of holding the HOA harmless in case of the contractor's negligence and a requirement of insurance. Furthermore we require all vendors to show proof that they are licensed to do work in our state and community and provide a copy of their insurance.

In your second scenario I agree with Brian and each homeowner would need to seek reparations from the city.

As far as who can sue; everyone can, in fact in Ohio they changed the law so that now not only can a HOA sue to enforce a covenant but if the BOD in a condo HOA fails to act; a homeowner can sue to enforce and recover his legal fees for doing so:

Compliance with Covenants, Conditions and Restrictions. Every Unit Owner shall comply strictly with the covenants, conditions and restrictions set forth in this Declaration, with the By-Laws of the Association and with the Rules and Regulations in relation to the use and operation of the Condominium, the Units, the Common Elements and the other Condominium Property. Failure to comply with any of the same shall be grounds for an action to recover sums due, for
damages, or injunctive relief of all of them, as provided by Section 5311.23 of the Ohio Revised Code. In any case of flagrant or repeated violation by a Unit Owner, he may be required by the Association to give sufficient surety or sureties for his future compliance with said covenants, conditions, restrictions, By-Laws, Rules and Regulations.

Violations of the covenants, conditions, or restrictions shall be grounds for the Association or any Unit Owner to commence a civil action for damages, injunctive relief, or both, and an award of court costs and reasonable attorney's fees in both types of action. Any and all expenses incurred by the Association in enforcing any of the terms and provisions of the condominium instruments, including reasonable attorneys’ fees to the extent permitted by Ohio law, may be levied as a special assessment against the Unit Owner in question and his or her Unit.

Studies show that 5 out of 4 people have problems with fractions
GeraldT4
Posts: 1,022
Posted:
RobertG - As GlenL has advised, the contract should hold the HOA not liable, etc. Great direction there GlenL. The HOA Board's purpose is to promote the general welfare, health, and safety of the owners through it's powers and duties, of which are to contract, and sue if necessary. IHowever, I don't think the HOA Board should take it upon itself to sue the vendor for damage to private property. I do think the HOA Board has a vested interest in notifying the vendor that there are owner claims of vendor damage that should be swiftly and amicably addressed and resolved between the vendor and the owners to each other's satisfaction, timing is of the essence. The integrity of the community, and property values are at stake because of the apparent visual physical damage to a number of homes in the association. As a vendor of the association the HOA Board should remind the vendor that it has a vested interest in the satisfaction of its membership. The HOA Board trusts the vendor will therefore act accordingly.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Has it be settled where the equipment was when the damage was done?
It would appear if the equipment caused the damage while on Private property, the owner has the right. If it happened when the equipment was on Common property the association has the right, along with the owner.
Just a thought.
RobertG (Arizona)
Posts: 505
Posted:
Quote:
Posted By RobertR1 on 03/18/2008 7:58 AM
Has it be settled where the equipment was when the damage was done?
It would appear if the equipment caused the damage while on Private property, the owner has the right. If it happened when the equipment was on Common property the association has the right, along with the owner.
Just a thought.

Lets use the city landscape scenario. They were on public property.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
I would be pretty sure that the City would have rights also.

Our city, not connected to our condo or HOA, in the last day or two had articles in the paper about some tree trimmers cuting down some live Oaks along the street on public property, and a couple private properties that abutted the street. It was against the Law for this to happen and the city sued and receive settlement for the trees and also an award for the loss of shade thoses trees provided. Now it didn't cover the part about the private owner losing his shade but you can bet the suits have already been filed as damage suits against the Landscaper, and since he has been found liable, the city is now off the hook.

🎯 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