HOA lawsuits

I would like to know if any HOA has been sued by a homeowner? If so, what funds did the HOA use to cover the lawsuit? What if there is not enough money? Also, what if the majority of the members of the HOA are not in agreement with the BOD by not handling the problem before it became a lawsuit and wanted it settled to avoid an enormous cost.

As usual John some good common sense advice. The unit owners whether a majority or not should have no input into any decisions made on legal issues.

I would suggest before you turn to the insurance company for coverage under your policy you have an evaluation made by an attorney as to the merit of the suit brought against you along with the potential cost versus the deductible on your policy.

Once the insurance company takes over the matter THEY get to decide how it will be settled. Along with any claim might have an affect on the cost for your coverage.

One neighboring property was sued and turned it over to their insurance for coverage, the insurance compnay settled for a small amount and paid out. Guess what the same owner has now filed ANOTHER suit hoping for another pay day.

I would weigh the costs against the potential damage to the property.

I am a homeowner privy to some info because I volunteer my time. I am not involved in the possible suit at all. It deals with a homeowner whose property sits too close to an easement(drainage pipe). Approx. 2 feet of pipe, the rest of the pipe the HOA is responsible for. The builder built the garage too close. The builder has agreed to reinforce the pipe(per BOD request)and this pipe will be the strongest in the neighborhood. Who knows how many other homes sit near or even on such pipes. Anyway the BOD voted 3 times to not hold the owner responsible should something happen to the pipe etc. and 3 times after attorney's advice rescinded that vote.(the Prez has it in for this homeowner)The homeowner is suppose to sue the HOA. Hence my question.

Susan is right,
Let what is going to happen happen and address it at that time. Not on;y do you not know if there is going to be a suit, you don't know what the charge will be.

You remark about the Prez having it in for this owner is not germane to a law suit started by an owner. What else is going on in this association that has contributed to this present state?

Nancy, I still don't understand what the problem is.

The homeowner can sue, but having a winnable case is something else altogether.

The HOA did not create this mess the builder did. Ultimately that is who the homeowner needs to deal with.

Just curious as to your thought process on this Susan.

Why should the HOA accept responsibility for the misplaced pipe?

It sounds like it was an issue between the homeowner's builder and the developer, and/or possibly their sewer/water district, and not the HOA's business at all. In other words, it sounds like an infrastructure issue.

The homeowner's builder is the one who built the structure too close and the developer is the one who approved it.

And, since there's an easement involved, on whose property does the easement exist? The Homeowner's or the sewer/water district's?

Either way, I'm having a huge problem trying to see where the HOA should even be involved in this.

Nancy:

The board is covered under the D&O insurance or E&O insurance and the insurnace company will pay for attorney's to defend a lawsuit brought against the HOA board. However they will not cover a lawsuit brought by the HOA or board against a homeowner except under some circumstances. I would check with your insurance agent.