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SimonS (Florida)
Posts: 15
Posted:
In Florida, are HOA board members and officers entitled by law to discuss and vote on the legal issues of cases that are being litigated with our Homeowners Board attorney? Does the President of the Association have the sole authority to negotiate speak and control the information on each case as he sees fit for the rest of us to know? We have never voted to give him exclusive authority, nor is it in our bylaws or covenants. He continues to say that the attorney (who should be representing all of us), tells him that we cannot be told certain legal aspects of each case. Does any single Board Member have the authority or right to enter into any legal agreement without the entire board being made aware of all the facts PRIOR to any proposed or final agreement?
I do understand the attorney client privilege but the BOARD is the client, not just the President because his decisions affect all of us and the community.

SimonS
HaroldS (Arizona)
Posts: 906
Posted:
Whoa! What are those two cooking up that they can't share with the board? You all have the same fiduciary duty to the members as the president, and he could be compromising yours. The rest of your board might want to remove this fellow as president, and then find another attorney.
DonnaS (Tennessee)
Posts: 5,671
Posted:
Simon,
NO single Board member can decide to litigate or have authority to control any information from the association attorney ,to the entire Board. Yes, the Board can withhold information from the membership per the attorneys instructions and the Statutes. Below is quoted from 720;303

1) Before commencing litigation against any party in the name of the association involving amounts in controversy in excess of $100,000, the association must obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained. This subsection does not limit any statutory or common-law right of any individual member or class of members to bring any action without participation by the association. A member does not have authority to act for the association by virtue of being a member.

2) BOARD MEETINGS.--

(a) A meeting of the board of directors of an association occurs whenever a quorum of the board gathers to conduct association business. All meetings of the board must be open to all members except for meetings between the board and its attorney with respect to proposed or pending litigation where the contents of the discussion would otherwise be governed by the attorney-client privilege.

Notwithstanding any other law, the requirement that board meetings and committee meetings be open to the members is inapplicable to meetings between the board or a committee and the association's attorney, with respect to meetings of the board held for the purpose of discussing personnel matters.

b) A governmental entity, business organization, or individual in this state may not file or cause to be filed through its employees or agents any lawsuit, cause of action, claim, cross-claim, or counterclaim against a parcel owner without merit and solely because such parcel owner has exercised the right to instruct his or her representatives or the right to petition for redress of grievances before the various governmental entities of this state, as protected by the First Amendment to the United States Constitution and s. 5, Art. I of the State Constitution.

d) Homeowners' associations may not expend association funds in prosecuting a SLAPP suit against a parcel owner.

PaulM (Pennsylvania)
Posts: 1,347
Posted:
SimonS: Are you being told by the President that it is OK for the Attorney to withhold information from the rest of the Board?...or are the rest of the Board members being told this directly from the Attorney?

You state..."He continues to say that the attorney (who should be representing all of us), tells him that we cannot be told certain legal aspects of each case." This is incorrect and totally unprofessional. Note: It may be the attorney has not actually made the statement the President passed along and the Pres. is assuming a 'more important' role over the others.

The difference is: the Attorney is under contract to the entire Board as an entity and on behalf of the Association. Further, no business/decisions should be conducted between any Board members UNLESS a meeting has been called and minutes will be taken of the proceedings. Otherwise, it's conversation and not official. But, an attorney should NOT be discussing matters in 'conversation' and singling out one Board member...if, indeed, he is.

The Board is his client, not one B-member. You might request a meeting be scheduled of ALL board members with the Attorney so he (Attorney) can make the info known to all, as well as to whom his loyalty is to be shown. If it is not to the entire Board, get a new attorney.

SusanW1 (Michigan)
Posts: 5,202
Posted:
It's not real clear if Simon is a Board member or general member.

The attorney should be talking to one person about the case, not the entire Board. Usually that is the president, since in most bylaws, it is stated that the president represents the Board in litigation. BUT . . . for sure the president should be sharing every step of the case with the Board. Decisions of the Board can be carried to the attorney by the president.
MaryA1 (Arizona)
Posts: 7,043
Posted:
04/05/2008 1:16 AM Quote Reply
It's not real clear if Simon is a Board member or general member.

The attorney should be talking to one person about the case, not the entire Board. Usually that is the president, since in most bylaws, it is stated that the president represents the Board in litigation. BUT . . . for sure the president should be sharing every step of the case with the Board. Decisions of the Board can be carried to the attorney by the president.

Susan,

Sorry, but I must disagree with you. While it's true the Pres. may "represent the BOD" (I'm sure you meant the assn), even in litigation, the board should know every aspect of any litigation the assn is entering into. It's OK for the Pres. to speak to the attorney about minor things, but the nitty-gritty of the case should be discussed in an executive (closed) session of the whole board. Too many things get lost in the translation when more than one person has to tell the story. IMO, meeting directly with the entire board would also speed up the process.
SimonS (Florida)
Posts: 15
Posted:
I am the VP of the Homeowner's association,and I am not aware of the facts of all grevience and fines cases that have been sent to the attorney.....some of these cases go back almost 4 years, the same awareness goes for the rest of the Board as they might have heard bits and pieces at meetings but never a full history on each case, definately not enough to make sound judgements and take a vote of action without knowing all of the facts.
The President has taken it upon himself to tell the rest of the board only what he wants us to know and expects us to take it at face value. The Board has questions for the attorney but the president wants them to go to him first and he will relay it to her. It's a power play for sure but it only can be stopped if it is addressed to the attorney and he tells the President what his job responsibilities and limits are. We have never had an executive session...what exactly is it and can it be done according to Florida statues?
SimonS
MicheleD (Kentucky)
Posts: 4,491
Posted:
In our HOA, we generally have 2 people present at every attorney meeting when there is a specific case being discussed.

For general communications, like passing along names and addresses of people who may need a letter re: violation notification or something of that nature, that usually goes back and forth from one person to the attorney, but every board member is copied on it. That is so they are aware of any and all communications and the status of every project in the attorney's hands, in case they are approached by a homeowner, they will know what the heck is going on!

When we are involved in a legal action, the two board members who attend the lawyer meeting then immediately update the rest of the board members with what was discussed and what was decided.

The move to go forward with any litigation is never, ever decided by one board member, but always by a motion and vote of the entire board.

Litigation, lawyers letters, even lawyers "opinions" are never ever personal. It's always about the business of the HOA and the actions that may need to be taken to maintain the integrity of the documents.

So, in that regard, we should be thinking of attorneys really as nothing more than another tool to help us maintain our documents and our HOA. When you have people closing out the rest of the board from the dealings with the attorney, it just FEELS personal, whether it really is or not. And as we all know, Perception IS Reality.

For my OWN protection I would not want to be the exclusive contact with the attorney nor would I want to keep the rest of the board in the dark about our conversations.

HaroldS (Arizona)
Posts: 906
Posted:
Do you mean this has been going on for four years? Why does the board keep electing him president? It sounds like you have enough votes to remove him. Member at large sounds like a safe place to park him.
SusanW1 (Michigan)
Posts: 5,202
Posted:

EVERY time we talk to a lawyer, the meter is running. I'd rather have one person talking to the lawyer. Our bylaws say it is the President. But if that person is not doing a good job, then he can be replaced.

A lawsuit is different; the lawyer should make a presentation to the Board about the case. JMHO.
KarenS11 (Florida)
Posts: 148
Posted:
We inherited a lawsuit from a previous board and had two mediations and two hearings before the judge. I informed the board, notified them of each meeting, invited them to take part and sought their advice every step of the way. They didn't really want to become involved and went with my thoughts on how to proceed each time we came to a decision point.

The only thing that I did not share with them was what went on in the mediations because we were told that anything said during mediation was confidential. Is that something that I could have shared with the board?
SusanW1 (Michigan)
Posts: 5,202
Posted:
Yes, but only in Executive Session, where all attendees are sworn to subject matter/discussion secrecy.
AndyD1 (Georgia)
Posts: 4
Posted:
Wow it sounds like the President is hiding things while every homeowner in the neighborhood is paying the legal fees. This President could run up a huge legal bill, assess all the homeowners for the bill all because of his own ego to control things. A friend of mine lives in a neighborhood like that now. The homeowners are being taken, all the HOA dues are going to pay legal fees and they are out of money for the normal HOA expenses like electric etc. Why can't people just be considerate and get along. Good post thanks for writing. Your fellow board member and HOATalk viewer. This is a great website.

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