Access to Legal Counsel

Started by BettyO1 • 7 replies • 1477 views

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BettyO1 (California)
Posts: 104

Posted:

If a treasure strongly disagrees with other directors on paying a large bill on grounds that it was not authorized, or may create legal problems for the association and asks for legal counsel, can the other directors vote it down?

SusanW1 (Michigan)
Posts: 5,202

Posted:

More info needed:
How did the invoice come into being without being authorized BEFORE the work was done?

What is the legal liability for the HOA if the invoice is not paid?

BettyO1 (California)
Posts: 104

Posted:

The particular issue is less the question. The question can be generalized to if board members disagree on issues that may hamper other members to carry out their fiduciary responsibilities, what is the required process to access legal counsel if the "other" side does not want legal counsel. Is a vote necessary?

KW3 (California)
Posts: 146

Posted:

This is quite interesting and worth digging a bit. I would say even board members disagree on an issue, the key is what's the decision of the board (not some members' decision) and if "the board" approves the decision (by vote or any legal instrument), then the board members who disagree/disapprove the decision are out of the hook because it's the board's decision (not some members' decision). Any way, I am very interested in knowing the process of accessing legal counsel in any circumstance.

GlenL (Ohio)
Posts: 5,491

Posted:

Quote:

Posted By BettyO1 on 07/14/2010 7:26 PM
If a treasure strongly disagrees with other directors on paying a large bill on grounds that it was not authorized, or may create legal problems for the association and asks for legal counsel, can the other directors vote it down?

IMO yes, the attorney works for the HOA not individual homeowners or Board members. You have the option of hiring your own attorney or you can ask that your objection to paying the bill be entered into the minutes to show you opposed paying it.

Studies show that 5 out of 4 people have problems with fractions

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

The treasurer is not in charge of making decisions for all. If they will not do their job, they can be replaced, no matter what the legal ramifications in the future.

So yes, they can vote it down, and pay the consequences later.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Betty,

Calling the attorney and asking a question is one thing, asking for a legal opinion quite another. A legal opinion may come with a fee attached and I don't believe one board member would have the authority to subject the assn to this. Generally speaking, the board, as a whole, should make the decision as to whether their attorney should be consulted for a legal opinion.

I'm wondering how paying a bill could result in legal problems. Seems to me the opposite would apply! More info would be appreciated.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Any member of the board can make a motion on just about any subject and the motion is in play.

However, the presiding officer can stop the motion by ruling it out of order (dilatory, i.e. absurd or unreasonable or harmful to the HOA.)

But IMHO, if a treasurer is concerned about the legality of paying an invoice, then it warrants a call to the lawyer. Not paying the bill may have more severe consequences.

The T should make the motion to ask for legal advice and see where the cards fall. At least the motion and vote will then be stated in the minutes and that is the treasurer's protection in the future.

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