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CharlesR5 (Texas)
Posts: 28
Posted:
when sueing an HOA member, does the board have to have a meeting to discuss and then decide ,by vote if all board members are in agreement with going forward with the lawsuit? or can just one member instruct the HOA secretary to start proceedings without the other board members knowledge or vote? to me it must be in a formal setting ,where the minutes can reflect any and all board members vote and direction the borad wants when spending HOA dues.
MicheleD (Kentucky)
Posts: 4,491
Posted:
It depends on the circumstances of the lawsuit.

If it's for a covenant violation that is not cured, then the board usually doesn't vote on moving ahead with the lawsuit. It's pretty much built into the covenant enforcement process.

If it's for non-payment of assessments, and part of the process that exists is to go to small claims court after $XXXXX in arrears has been accumulated, then the board probably doesn't have to vote on that either.

Again, the lawsuit stage is probably built into the process.

Now in our case, we often address it during a board meeting that the attorney/lawsuit stage has been reached, just to formalize it in the minutes. But it's not required.

I can't think of any other reason that the HOA would sue an association member.

Care to fill in the blanks for us?
MicheleD (Kentucky)
Posts: 4,491
Posted:
By the way, the annual budget probably already reflects a certain amount in legal fees that will be or is expected to be spent over the course of the year.

So if the amount in initiating the lawsuit is not over that budgeted amount, then the board doesn't necessarily need to vote on it.

They may need to increase next year's budget for legal expenses if the case ends up exceeding the current year's budgeted amount.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Charles,

Can you please give us more info? Why is the member being sued? Who is the board member who has instructed the Sec to start proceedings? Is the whole board aware of the situation?

As Michelle has stated, if this lawsuit is as a result of a delinquency or CCR violation then the procedure should be standard and no vote of the board is needed. However, if this is a case of one board member deciding to sue a member of the assn without the whole board having any knowledge of the issue then that is an entirely different matter.
CharlesR5 (Texas)
Posts: 28
Posted:
MaryA1,

as strange as this may sound, in our community we have about 30 non-member lots. a member of one of those lots and the secretary are best friends. so the non-member tells her what he sees and she sned out notices, when it doesn't go as she feels it should go,she then has a board member sign off ,so she can go file suit.

the member that is being sued is for a grass mowing violation. by all indication they pay their dues on time, but their lot is near the non-members lot ,so he is always "telling" on them. we have 5 board members , when ask 4 of the 5 have no clue that their is a lawsuit going on.
GlenL (Ohio)
Posts: 5,491
Posted:
Charles then the other four members of the Board needs to remove her from her position (the position not the Board) and appoint another Board member to be secretary. The Board also needs to make a policy outlining just who can initiate a lawsuit. With all due respect to Mary and Michele IMHO it is improper for one person on the BOD to initiate a lawsuit, the power of the Association flows through the Board not the one unless the Board authorized them to act unilaterally.

Studies show that 5 out of 4 people have problems with fractions
MaryA1 (Arizona)
Posts: 7,043
Posted:
Glen,

With all due respect, I agreed with Michele because she was saying if there is a policy in place (that all board members are aware of and have agreed to) that calls for placing a lien as one of the actions then approval to instigate a lawsuit may not be required. However the board should be talking about these cases each month and discussing at what level each violation or delinquency is at. Therefore when the lawsuit is entered into every member of the board will know what is going on.

Now the actions of the Sec of Charles' BOD is totally wrong. She is not following an approved procedure but rather acting solely on her own. I agree she should definitely be removed from her position as Sec. Every violation complaint received from a member should be checked out by a board or Architectural Comm member b/4 a violation notice is sent. Just relying on the word of a complaining member is certainly not proper, at least IMO, although I know some assn's have this policy. The BOD and/or Architectural Comm will be resp. for any errors made and liable for any damages incurred, not the complaining member.
MicheleD (Kentucky)
Posts: 4,491
Posted:
I'm just not going to weigh in on the specifics of this alleged incident because it is way too third hand.

And, quite frankly, if the issue is an open violation that is not remedied by the resident, regardless of who is best friends or not with whom, if the notices have gone out and the violation still exists, and the next step is a lawsuit, then that's the way it is.

We do not require the full board to "vote" on or "sign off" on lawsuits as a result of uncorrected violations.

It's the next stage of the process, and if the proper notices have gone out, and all that's required in the next stage of the process is to have a board member sign off, then, oh well.

The resident should have corrected the violation, or at the very least not have consistently or repeatedly violated whatever covenant he/she violated (grass maintenance?) so that letters have to continually be sent requesting compliance.

With all due respect to both Glen and Mary, we really have no idea if the secretary in this case is or is not following their prescribed process.

It could very well be proper.

We do have information from someone who apparently likes to arm-chair micro-manage the board.

IF the board has a policy in place that allows the trigger to be pulled on a lawsuit after XXX number of violation notices, as long as ONE board member signs off on it, then the secretary is following the procedure.

IF the board requires a vote, then of course she has not.

I just don't think we have enough (unbiased) input to make any determination one way or the other.

PS: Whether a person is up-to-date on assessments has no bearing on a lawsuit brought to compel compliance to the covenants.

PSPS: At any given time, there may be some of our own board members who wouldn't feel comfortable simply letting a third party know if a lawsuit has been filed against a member or not, without first consulting with the rest of the board. As Mary stated, all board members would be brought up to speed at the next board meeting, but if the lawsuit was triggered prior to that, not all of our board members would necessarily know or be aware of it either. When I was president, I would also do a blast email if we got the attorney involved, but not all our board presidents operate that way, preferring instead to just bring everyone up to speed at the next scheduled meeting.

MichaelK11 (Texas)
Posts: 432
Posted:
Charles,

If the Homeowner being sued is in clear violation of your Covenants, and if these violations are being handled the same way they have been handled for other homeowners, then it may just be a question of whether your Directors are following a consistent and acceptable procedure -- as you framed the issue.

However, if this homeowner is being sued for things that are usually ignored -- that other homeowners have been allowed to do without similar response (as you may have implied), then you may have a bigger problem than proper governance. Another poster recently asked about selective enforcement, and this might be a strong defense in the lawsuit you describe.

Selective enforcement is enforcing the rules for some homeowners and not others, or enforcing them differently for some than for others. If your HOA is unfairly harassing this one homeowner, then the Defendant may have a strong defense or counter-suit. This might allow them to win the suit, or might make it much more expensive to prosecute.

I've posted that my HOA is involved in a big lawsuit (against a lawyer). This has put us roughly $30,000 in the red and may require homeowners to pay four to six times our annual dues (roughly half for the HOA's attorney and half to the homeowner who was sued) if current efforts to settle this are successful. Certainly more if we fail to stop this.

It's also not clear if your HOA is engaging in a routine action to file a lien or collect a small penalty, or if it is starting a major lawsuit.

What part of Texas are you in, please?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Glen,I endorse your approach to this problem.
i expect if any of this requires the present secretary's involvement there already is a problem there.
The issue with a unilateral action to sue is laced with problems. Is a precedence established by the board? It should be. In view of the communication revelations, it is a simple matter to pole the individual board members. If there is specific directions written into the documents and this is routine matter, then it would appear what ever is written would serve. I would still suggest that all boards make all board members aware of all active court issues, ASAP. Charlie's example seems to fall outside of "routine". The size of the associarion could also bear on this notification issue.
In a large association with hundreds of units it may be deemed to be a strictly administrative function,
and handled under specific detailed board approved directions. In that case it would probably be a management company responsibility.
CharlesR5 (Texas)
Posts: 28
Posted:
MichaelK11,
you ask what part of texas i am located in, i am located near fort worth
CharlesR5 (Texas)
Posts: 28
Posted:
GlenL,
the secretary is not on the board per se, she is a paid employee of the association.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By CharlesR5 on 11/16/2009 8:08 AM
GlenL,
the secretary is not on the board per se, she is a paid employee of the association.

For the record, Charles, this makes no sense to me. Does she work for a management company? Otherwise, why would your association have "paid" employees?
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By CharlesR5 on 11/16/2009 8:08 AM
GlenL,
the secretary is not on the board per se, she is a paid employee of the association.

Charles,

Do you mean she is on the payroll; the BOD takes out taxes, etc and pay her a wage. Or is she contract labor? Does she work for a mgmt co or is she an independent contractor. Exactly what are her duties as secretary? If she is an employee, she can fired for doing things that are not a part of her job description, especially things that may get the BOD into hot water.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By MaryA1 on 11/16/2009 9:05 AM
Posted By CharlesR5 on 11/16/2009 8:08 AM
GlenL,
the secretary is not on the board per se, she is a paid employee of the association.


Charles,

Do you mean she is on the payroll; the BOD takes out taxes, etc and pay her a wage. Or is she contract labor? Does she work for a mgmt co or is she an independent contractor. Exactly what are her duties as secretary? If she is an employee, she can fired for doing things that are not a part of her job description, especially things that may get the BOD into hot water.

Except we really don't know if she has done anything of the kind, either something that may qualify as a fireable offense or something that may get the BOD into hot water.

All we know is someone, who is not a board member, thinks that she acted above her pay grade based on some casual questioning of board members, who may or may not feel like revealing what they really know or don't know to someone who may well be a friend of the person who may be the target of a lawsuit.

Again, if their association has a process whereby attorney involvement (including lawsuit initiation) is triggered after certain steps have been completed, then all she did may well be executing her job as she's been told to do it.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Michele,

From what Charles has posted I am led to believe the secretary is the self-appointed assn enforcer. A friend who is a non-member tells he what he believe to be a violation and based upon that she sends a violation notice. According to Charles, if it doesn't go the way she likes she has a board member sign off so legal action can be taken. If this method of enforcement is acceptable to the BOD, then, IMO, the whole board needs to go!!
MicheleD (Kentucky)
Posts: 4,491
Posted:
I believe that is what Charles' IMPRESSION of her is. We have no way of knowing if he is unbiased in his interpretation.

It is the same old song we hear from friends of chronic violators all the time.

They feel they are being watched and policed by old biddies who have nothing better to do with their time than to measure how long someone's grass is.

The fact is, it's very frequently more than one resident who complains about various individuals and their violations.

His characterization of the situation is almost chapter and verse.
MaryA1 (Arizona)
Posts: 7,043
Posted:
I always wonder how non-board members know exactly what's going on with the board!!
CharlesR5 (Texas)
Posts: 28
Posted:
MicheleD,
we are self governing. we have 5 board members,that are non-paid and an office secretary- office manager ,that is paid.
CharlesR5 (Texas)
Posts: 28
Posted:
MaryA1,
as strange as it may sound, no board member ever signs the violation notice. it is sent out by this secretary-office manager with NO SIGNATURE on it
CharlesR5 (Texas)
Posts: 28
Posted:
MicheleD,
i am UNBIASED to the whole thing. I am just seeing selective enforcment taking it's toll on our HOA funds. don't pick and choice violations ,get them all in order
CharlesR5 (Texas)
Posts: 28
Posted:
MicheleD,
she is a W-2 employee, who works for the HOA, not a management company
MaryA1 (Arizona)
Posts: 7,043
Posted:
Charles,

So, is it her job to enforce the CCRs or just to send out the violation notices? Are you complaining that she is doing more than her job calls for or are you complaining about the way she does her job?
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By CharlesR5 on 11/16/2009 3:25 PM
MicheleD,
i am UNBIASED to the whole thing. I am just seeing selective enforcment taking it's toll on our HOA funds. don't pick and choice violations ,get them all in order

You'll have to excuse me if I don't buy this characterization. Without having access to the complaints that are filed and with the process by which your board directs the complaints to be followed up on, it's not likely you can make this pronouncement.

I can guarantee you that almost every single recipient of a violation notice in our neighborhood, as well as their neighbors to whom they complain when they get that notice, feel exactly the same way: that they are being singled out for "selective enforcement." It's one of the most common misconceptions in HOAs.

With all due respect, I've read and re-read your posts on this and for all intents and purposes, it is virtually impossible (no pun intended) to determine that what this secretary has done is or is not appropriate or whether it is or is not "selective" enforcement.

What difference does it matter who reports a violation? Our mailman reports various violations to us from time to time. He doesn't even live in this part of town, much less in our development.

If the person is in violation, and it is reported to the board, and the policy of the board is that violation notices are triggered once a complaint is made, then apparently she is within her role to do so.

And when you say, "when it doesn't go as she feels it should go,she then has a board member sign off ,so she can go file suit. . ." what you are really saying is "when the person who has been notified that they must correct the violation doesn't, she then goes to the next step to get a board member to sign off and begin attorney action."

Frankly, that's pretty common practice. If a violation is not corrected, or if a resident repeatedly violates the same covenant, and letters requesting compliance don't work, then the next step is the attorney.

If the board had problems with the way this person was handling the violation notices, then they clearly would have dealt with it before now.

If your friend does not like getting notices, and is unhappy about having to defend him/herself in a lawsuit for noncompliance, then the simplest and easiest thing to do would be to comply, regardless of what role the person feels this paid employee should have in the process.

The board is obviously quite comfortable with her work.

It also appears they are using her as a buffer to keep themselves from being "the bad guys" regarding violation notices, but that's probably a different topic altogether.

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