ARC liability

Started by JackieB • 6 replies • 1177 views

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JackieB (California)
Posts: 198

Posted:

It is my understanding that the ARC committee, appointed by the BOD as
volunteers, is covered equally as is the BOD for liability/lawsuits from
HOA members.
We are all volunteers and a property management company handles the details.
Very interested in comments, please.

SusanW1 (Michigan)
Posts: 5,202

Posted:

The board is the final authority. A committee reports to the board, which then approves its recommendations.

However some committees have authority of their own.

Stay tuned for our California experts who know about the role the ARC plays in HOA

In any case, your insurance covers the actions of board members and volunteers who act in certain roles as long as the actions were not illegal and/or in conflict with other rules.

JackieB (California)
Posts: 198

Posted:

excellent Susan. Our insurance broker echoed the same info. Thanks

JohnO6 (Georgia)
Posts: 424

Posted:

It's important to remember that at least some (or all depending on the given situation) of the Board members are officers of a corporation. As such they are responsible for corporate actions.

Bottom line = BOD can delegate authority to committees, but they cannot hide from their accountability.

JackieB (California)
Posts: 198

Posted:

excellent advice. Just to share more detail, a member of the ARC wants to pick and choose what she wants to do, saying "I am not legally covered..like
the BOD." .....rather than abiding by the ARC guidelines.
again
Thanks

CharlieM (California)
Posts: 42

Posted:

In our community the ARC can be appointed and removed with cause at any time by the board. The board is responsible for the ARC. Your ARC member is throwing your board under the bus with that attitude.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Jackie,

Even if she's not covered by D&O (which I very seriously doubt) she is still obligated to follow the gov. docs and the A/C guidelines. The BOD can still be taken to court over her violations and she may have to pay whether she's covered or not. If she intentionally violates the covenants and/or state law the D&O will not pay for her legal representation, she will. IMO, the BOD should seriously reconsider her appointment to the A/C Committee!

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