Small Claims Court

Does anyone know if you can take board members to small claims court for not paying past dues if you can prove it? Sounds cheaper that hiring an attorney. All comments welcome. Thank you in advance for your response.

Shelly,

Leaving out "can" for now, has the HOA exhausted all of the Notice and Request requirements for seeking payment of past dues (probably contained in your docs)?

I am a board member. In other discussions I have asked for advise about board members not paying their full dues. It just came to me about small claims court. I have taken customers of mine that didn't feel like paying to small claims court and found it very easy of a process. The $35.00 you pay to file is nothing and the paper work takes all of 5 minutes. I have several residence that are upset to the fact that the rest of our board doesn't pay theirs dues in full yet they are placing liens on peoples houses for not paying and threatening foreclosure which in our by-laws you cannot do. By-laws state no compensation and that you can only place a lien on the house for non payment. Its been a month and a half that we requested the numbers on what is collected per year for income for our association and they still have not replied. Last months meeting half of the board did not show up they all had excuses of why they couldn't be there but the truth was we had asked them to provide us with information that they did not want us to know. We asked to do a review, revenue number, and for the board to get documentation from the attorney regarding compensation. Everything we asked for was ignored on top of me getting 3 bids for the snow removal and them still not opening the bids. I was called by one of the board members yesterday and told to lay off the treasurer and to not ask the residence to attend any of the meetings because nothing ever gets accomplished. Which is wrong. We do get a lot accomplished, but the board is so sneaky with everything and the residence don't like it. Most of the decisions are made by e-mail and I am getting irritated that. They down right make stupid decisions. I will give you an example because I know people will retaliate with "LIKE WHAT". A neighbor wants to donate 14 blue spruce trees for the front entrance of our sub. It is a vacant lot right now and he just bought a home with a pool that is fenced in with black wrought iron. This is a beautiful house but the yard should be private because of the in ground pool. Now here is the part you will like. This house is not for him it is for his care taker that takes care of his home and anything else he needs him to do while he is away. Now this man is my neighbor and is one of the most generous people I know. This man has built a Cancer Center with his own money and a food bank for people who are less fortunate and don't have enough money to put food on the table. Trust me there is plenty more. Now our board discussed by e-mail that they would approve these trees if he would be responsible for them 100% for the next 2 years. I find their decision very insulting. I mean really any landscaper will warranty them for a year.

Shelly - you MUST ask these board members where it is written that they can take a reduced rate in their dues, as a compensation for serving on the board.

If they can't produce that, then as a regular Member of the Association, you can begin to lead a campaign to remove them from office.

Re: the "gift" of the trees. If it costs money to take care of a "gift" then don't accept it.

Shelley,

Check your Declaration and Bylaws...
Our bylaws state that "each member" of the association is "obligated" to pay the annual dues and any special assessments. "No owner may waive or otherwisew escape liability for the assessments." Any assessmets/dues which are not paid when due shall be considered delinquent and can be charged interest at 12% per annum. Also, the Association may bring an action of law against the owner obligated to pay the same or foreclose the lien against the property. You can also recoup any interest and reasobale attorney fees. Additionally, our bylaws state that "No director shall receive compensation for any service he may render the Association." Lastly, if owners (including your fellow directors) are in default for not paying association dues, their voting rights may be suspended. This would therefore, make those directors powerless anyhow. As for enforcement, the Association or any owner may have the right to enforce, by proceedings at law or in equity, all restrictions, conditions, covenants, reservaitions, liens and charges imposed by the provisions of the Declaration, so if your Declaration and Bylaws provide similar provisions you (or any other member) can pursue enforcement, which may include bringing suit.

If it were me, I would definately consider small claims! But, if you and the other affected members get together and hire independant legal counsel to take the matter to civil court and win judgement, you can be compensated for "reasonable attorney's fees." I would also consider removal proceedings of board members as may be provided in your docs. Worst case senario get the general membership aware/involved and the folks will not be re-elected at the expiration of their term. Just some food for thought. Good luck!!!

Gee thanks, Susan! LOL