MichaelK11 (Texas)
Posts: 432
Posts: 432
Posted:
I'm still interested in views on CoI as it applies to my situation, and to see how other people feel about it as the tables get turned.
My HOA has a dispute with a homeowner regarding a wall he built on an exclusive-use easement he has over HOA land. We are currently engaged in a lawsuit; but before the dispute escalated to this, we had one Director who did not agree with the rest of our BoD about this dispute. Another Director was neutral, and the other Directors pursued this dispute and strongly opposed any disagreement. They decided the one who disagreed had a conflict of interest, because he was "friendly" with the protagonist. That Director said he was not a friend but an associate -- he could count his true "friends" on the fingers of one hand -- but he was considering a possible business venture with the protagonist. That venture never got past the dinner-talk phase.
Our BoD then excluded that Director and he eventually resigned in anger, disgust and high blood-pressure.
Some of you said that the potential business venture was a conflict of interest and some said no. Most seemed to think association or friendship were not an issue. More comments welcome on that, and also on this:
What was not widely known at the time was that the President of the HOA, a realtor, has been the family realtor of the protagonist's next-door neighbor and his son. The neighbor and his son have right of first refusal on the Defendant homeowner's house, through a divorce settlement. The original lawsuit included a cause of action to foreclose on the Defendant homeowner's house.
HOA Pres->Realtor for neighbor family->family ROFR on house->HOA suit to foreclose on house. Is it a Conflict of Interest for the HOA President to be involved in BoD discussions and votes about this lawsuit?
My HOA has a dispute with a homeowner regarding a wall he built on an exclusive-use easement he has over HOA land. We are currently engaged in a lawsuit; but before the dispute escalated to this, we had one Director who did not agree with the rest of our BoD about this dispute. Another Director was neutral, and the other Directors pursued this dispute and strongly opposed any disagreement. They decided the one who disagreed had a conflict of interest, because he was "friendly" with the protagonist. That Director said he was not a friend but an associate -- he could count his true "friends" on the fingers of one hand -- but he was considering a possible business venture with the protagonist. That venture never got past the dinner-talk phase.
Our BoD then excluded that Director and he eventually resigned in anger, disgust and high blood-pressure.
Some of you said that the potential business venture was a conflict of interest and some said no. Most seemed to think association or friendship were not an issue. More comments welcome on that, and also on this:
What was not widely known at the time was that the President of the HOA, a realtor, has been the family realtor of the protagonist's next-door neighbor and his son. The neighbor and his son have right of first refusal on the Defendant homeowner's house, through a divorce settlement. The original lawsuit included a cause of action to foreclose on the Defendant homeowner's house.
HOA Pres->Realtor for neighbor family->family ROFR on house->HOA suit to foreclose on house. Is it a Conflict of Interest for the HOA President to be involved in BoD discussions and votes about this lawsuit?