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RobertG (Arizona)
Posts: 505
Posted:
What do you think of this idea [Arizona]-

There is an issue before the HOA that may require negotiation/mediation/arbitration/ligation with a third party. An attorney has been retained that will take the case on a contingency bases. The action may only proceed if 75% of the homeowners vote in the affirmative.

[Note: I may the process a little off as it has not been completely decided yet.] The plan is to have the attorney send out a letter with the issue and a ballot. The homeowner is requested to vote and send it back to the attorney. There will be some type of due date, like 2 weeks to vote [not sure about this timeframe]. If the attorney does not get everyone to vote, then he/she will send out another letter to all those who did not respond and request them to vote. This process will continue until 75% of the homeowners have responded or the issue has passed. The attorney will tell the board the status of the yea/nay as the votes come in.

The Bylaws allowing a "action by written ballot" states

"Any action that the Association may take at any annual, regular or special meeting of the Members may be taken without a meeting if the Association delivers a written ballot to every Member entitled to vote on the matter. The written ballot shall set forth each proposed action and provide an opportunity to vote for or against each proposed action. All solicitations for votes by written ballot shall: (a) indicate the number of responses needed to meet the quorum requirements; (b) state the percentage of approvals necessary to approve each matter other than election of directors; and (c) specify the time by which a ballot must be delivered to the Association in order to be counted, which time shall not be less than three (3) days after the date that the Association delivers the ballot. Once a written ballot has been received by the Association, the ballot may not be revoked. Approval by written ballot pursuant to this Section is valid only if both the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action and the number of approvals equals or exceeds the number of votes which would be required to approve the matter at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot."

Do you think it is a plan that follows the rules and/or is a good idea?
JosephW (Michigan)
Posts: 882
Posted:
You're asking non-lawyers to give a legal opinion when you already have a lawyer working on it. In any event, it looks like nothing in your CC&R's conflicts with what the attorney proposes.

Joe

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PaulM (Pennsylvania)
Posts: 1,347
Posted:
RobertG: The issue which 'may' require negotiation/mediation may or may not occur; and hopefully, it will not. However, if it does get far enough for a letter w/ballot sent to all homeowners for their vote, then I would suggest the Board coordinate this process, and NOT the attorney. An attorney is not necessary to fulfill this requirement, and he/she will charge big-time for their time and services. IMO, its not an efficient way of using the association's funds.

IF indeed an attorney is needed for mediation/litigation "once 75% of homeowners vote yes", then will be the point for an attorney's services, but not before, and certainly not for a letter/ballot process the Board or homeowners can initiate.

RobertG (Arizona)
Posts: 505
Posted:
Maybe I should have been more correct in my terms. The lawyer IS doing this, not the board is thinking about doing this. The action is already started as I stated.

I really didn't want to make any judgement statements, but I am concerned about having a ballot issue sent out once and then resent to those who didn't vote again and again until enough people vote. Also the bylaw states a (single) date must be given for return of the ballot. If the first ballot is sent out with a due date of 2 weeks, then the lawyer determines only 1% voted and sends out a new ballot to those who didn't vote with a new due date, that seems to contradict the single date for a ballot portion of the bylaws.

Also, how would you feel if a lawyer who is getting paid by generating work or by a piece of the settlement to receive the ballots and count the ones to get the go ahead so he can proceed?
SusanW1 (Michigan)
Posts: 5,202
Posted:
What are they trying to do? Get the members to make a decision by written ballot? What exactly are the people voting on?

I don't like it. This entire process limits formal "debate" on the motion.

Insist that a meeting be called for the vote. All members need to listen and participate in the debate of this motion (idea.)
RobertG (Arizona)
Posts: 505
Posted:
Quote:
Posted By SusanW1 on 04/16/2008 4:19 PM
What are they trying to do? Get the members to make a decision by written ballot? What exactly are the people voting on?

I don't like it. This entire process limits formal "debate" on the motion.

Insist that a meeting be called for the vote. All members need to listen and participate in the debate of this motion (idea.)

To restate, this is a done deal as far as the ballot being sent out. There is no possibility that "insisting that a meeting be called" will happen, the board has already taken their position. There is no debate on this issue, even though there has been 2 years of talk about the general problem.

The ballot will say something like (and I am guessing a bit on this as I have not seen the ballot) -
"Yes, I authorize the HOA to proceed with mediation/arbritation/ligation claims against vendor xxxx" and
"No, I do not authorize the HOA to proceed with mediation/arbritation/ligation claims against vendor xxxx".
SusanW1 (Michigan)
Posts: 5,202
Posted:
Robert.
First you say:
"The action may only proceed if 75% of the homeowners vote in the affirmative."

Then you say: (after the lawyer has again sent out the ballots) "This process will continue until 75% of the homeowners have responded or the issue has passed"

Is it that 75% have to respond one way or the other, OR a 75% approval has to be met?

75% approval for a vote is very high? Where did this number come from?

Are you sure the lawyer is not just conducting a survey?
YvonneA (Illinois)
Posts: 17
Posted:
Well, the lawyer has already started the process.It seems like you were using the attorney to open the ballots so no funny business could take place. It has been my experience (after motioning the issue at a meeting) that the only way to get enough people to vote period is to go door to door with the issue written out, a ballot to fill out, pen and envelope to which they seal and sign, hand back to me & put into a bigger envelope. I wrote their name on the issue part that they kept to keep track of who wasn't home and made multiple trips until I got 98% of the owners to vote in which we needed 66 2/3% to agree. The ballots were then opened at the next meeting. We were amending a By-Law in which certified mail was not needed. An attorney did read over the proposed amendment and defined a few legal words. The Board Members did all the footwork. It passed & then was recorded.

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