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GeorgerwilliamsW (Indiana)
Posts: 975
Posted:
    "The latest case went to trial last week, and it took four days for a judge to sort everything out. In the end, the neighbors mostly won. Two families were not assessed any of the thousands in legal fees the HOA sought. And two families will pay just $1,200 each - far less than was sought.

    "One of the winners was Matt Lasley, who was sued for refusing to sign a loyalty oath the board demanded from each of its 100 or so homeowners after a group attempted to oust the board in June 2007.

    "'This court is dealing with something all courts have to, but we can't solve, and that is bad adult behavior.' I think I'm going to carry a copy of his ruling," Lasley said. "Every HOA probably should have one.

    "HOA attorney Jack Scheuerman, said he was disappointed.
    "It did not come out as well as we'd have liked," Scheuerman said, adding that he is not eager to take the Holly foreclosure case before Kane."

    "Springs resident Haze Hutmacher hopes this is the end of the lawsuits. He denounced the HOA board for "abusing its power" and costing the neighborhood thousands in legal fees it must now absorb."
      http://www.gazette.com/articles/judge_41454___article.html/lasley_hoa.html
KirkW1 (Texas)
Posts: 1,665
Posted:
I recall us discussing this case a short while ago. Many believed the new Board would try and settle the case. I guess they didn't try hard enough. To be honest, I believe the judge should have awarded the defendant his cost of defense.

I find it interesting that the attorney isn't looking forward to the foreclosure proceeding later. I just don't get why they wouldn't look to drop that case. It seems like a sure way to lose more money.
GeorgerwilliamsW (Indiana)
Posts: 975
Posted:
This case was not about covenant violations, although that was the proximate cause. There were personal issues here on both sides that clearly got out of control, as the judge noted.

The record shows that homeowners were clearly violating deed restrictions. It also shows that the board was abusing its power. It has become a costly lesson for all sides. "Innocent" residents were caught up in the board's arrogant quest for retribution.

It demonstrates what can happen when there are inadequate, accessible checks and balances on the power of a board. It may also be the perfect example of the Abilene Paradox in action.

It also fits the axiom, all power corrupts . . .

We cannot, and should not, rely on an idealized concept of democracy to provide those checks and balances. It does not work in our constitutional form of government, nor does it work in a private, pseudo government by contract.

In their homes, most people seek respite, peace and quiet. That leads to a desire to be left alone, and a desire to not get involved in disputes or in regulating the behavior of others. That is one reason behind low turnouts in association elections and participation in the affairs of associations.

People want to avoid controversy. People will long suffer much indignity and abuse before acting.

It is also one reason why board participation tends to attract people who wish to control the lives of others. Not all board members are attracted for that reason. Yet, for some, board participation is an outlet for their need to control, regulate and dictate. And those people are able use low turnout and the lack of adequate checks and balances to enhance their power.

The best boards are characterized by commitment to servant leadership and conduct their work though a strategy of policy governance.
MaryN (Virginia)
Posts: 125
Posted:
George,

Amen and amen..well stated! Absolute power given to any BOD is dangerous. Last week we finished an expensive and exhausting lawsuit against our HOA..which was ruled a Civc Assoc..and the BOD cost the Assoc. several thousand in legal fees..as defendants cost us much more..and they are still in power. Have yet to inform the other property owners. Once we get copies of the Judge's rulings we plan on making copies and sending them to everyone. Now that it's a voluntary assoc and not a mandatory one...their power is very limited..but..I still don't trust them and suspect they will be up to more mischief!

MaryN
JeffT (Maryland)
Posts: 83
Posted:
Why does the people who tried to have the board ousted have to reimburse for the expense of the overthrow?

Isn't each members right to call for a special meeting of members for the purposes of community issues? Isn't their right to go around and lobby for things that they wish to see in the community, including calling for the dismissal of BOD members if they do not agree with them?

What if I wanted the sidewalks repaired because they are all cracked up and the board does nothing. Do I have to pay the cost holding a special meeting to try and get a special assessment enacted so that the sidewalk can be replaced?
RogerB (Colorado)
Posts: 5,067
Posted:
Mary,
A voluntary HOA has every right to enforce Covenants just like a manditory HOA. The only difference is the manditory HOA has more guaranteed financial resources. I seriously question the judge's decision against the HOA had anything to do with being a Civic Association. If this was the basis for the judge's decision the decision may be appealed and then you would be looking at several thousand more. There are much more effective and much less costly solutions to differences of opinion than litigation.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
To all,
It doesn't seem to serve any purpose to not abide by Roger's advice. I think the issues involved are minimal in nature as opposed to the Board suing an owner, to me that is major and I believe the judge should rule on the issue of whether the case should have be resolved outside the courts.
We have all been mad enough to sue the Board and the President (the really Mr. President)(not about the same things, of course), but we don't and time passes and just like a husband and wife spat, two weeks down the road the issue is forgotten, by most people. By it takes a lot of folks to get together, plan and scheme and spend money that don't belong to them for the BOD to sue an owner. If they have to do it I quess they have to do it, it is what is is, but it is also costly, and likely to appear folish at the end.
KirkW1 (Texas)
Posts: 1,665
Posted:
The big issue as I see it was that the Board decided everyone should sign a "loyalty oath." There is no basis for such. They far exceeded their bounds. And the homeowner felt that he was being accused of something in their asking him to sign it.

In my opinion, the whole thing was stupid on the BOD's part. They don't have any right to loyalty. And if I had been on the ouster group I would appeal as I don't see that they should have to pay. If they met the requirement, then they had their day. When they lost, the whole issue should have been over.

I would be inclined to vote the replacement bums out for not having the insight to drop the whole thing before seeing the judge.

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