A Checklist to improve the effectiveness of your HOA Board of Directors

October 30, 2014 on 12:34 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Real Estate Strategies, Susan B. Tarley | No Comments

 

For your homeowners association, here’s a simple, but effective and invaluable checklist of suggested resolutions to improve the Board of Directors in your community association.

Williamsburg Virginia Business and HOA Lawyers

Board Checklist

    1. Set-up your board of director orientation with Tarley Robinson, PLC.  This service is provided at no charge to our clients. We will send out a an email and letter to schedule an orientation shortly after your board of director elections. Email us to make sure you are on our mailing list.
    2. Review your documents with your manager and attorney, or if self-managed, with your board and attorney, to determine whether you are operating in compliance with your documents and whether your documents comply with the law.
    3. Encourage civility, applaud the good deeds of neighbors and provide solid leadership.  Remember that you are part of a community.
    4. Schedule an appointment with your insurance agent to review your current policies. Confirm that your policies comply with any insurance requirements in your documents. Find out if you should change your deductibles.  Determine if you are paying the best price.
    5. Implement your Complaint Policy and Copying Policy. You are required to have them.
    6. Conduct efficient and effective board meetings. Spend some time working on the processes and procedures for your board meetings. Seek input from your board members, manager and attorney.
    7. Follow the legislation affecting community associations. The Virginia Legislative Action Committee will be working hard to review proposed legislation and determine its impact on community associations. Updates will be posted at http://www.cai-valac.org/
    8. Review your Reserve Study. Virginia law request annual review of your Reserve Study. If you do not have a Reserve Study to review, resolve to obtain one. It is the law.
    9. Conduct a risk assessment relative to safety and the use of your Common Areas or Common Elements. Follow-up with appropriate action, be it implementing safety rules, repairing an unsafe area or item, or posting a warning sign.
    10. Attend seminars provided by CAI. The Central Virginia Chapter Community Association Day, for example, is a daylong event that includes some great educational opportunities.
Being a Board Member for your HOA or Condo Association is a big undertaking, but there are resources to help you understand your responsibilities and become a more responsive director. Resolve to take advantage of these resources and help your HOA Board become more effective.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

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Smile! You’re on HOA Meeting Camera! Can I videotape my HOA meeting?

October 30, 2014 on 12:34 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Megan Scanlon, Unit Owners Association | No Comments

If you work with community associations in Virginia as a board member, manager or attorney, you probably know that Virginia law permits HOA members to record any open meeting of the association. The relevant statute, Virginia Code § 55-510.1(B) of the Virginia Property Owners’ Association Act, contains one short paragraph which outlines the recording requirement as follows:

Any member may record any portion of a meeting required to be open. The board of directors or subcommittee or other committee thereof conducting the meeting may adopt rules (i) governing the placement and use of equipment necessary for recording a meeting to prevent interference with the proceedings and (ii) requiring the member recording the meeting to provide notice that the meeting is being recorded.

The provision gives associations the authority to adopt rules with respect to the recording of meetings, however, the authority to enact rules is very narrow in scope:

1. The association is permitted to establish rules regarding only the placement and use of the equipment; and

2.  The member recording is required to provide notice that they are recording the meeting.

Association rules that reach farther than these two items violate the Property Owners’ Association Act according to a recent Determination issued by the Office of the Common Interest Community Ombudsman (“Ombudsman”).

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Unauthorized Practice of Law: When unlicensed attorneys serve as HOA board members

October 30, 2014 on 12:34 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Merger & Acquisition, Real Estate Strategies, Susan B. Tarley | No Comments

An article in the Virginia Gazette featured a story regarding the indictment of a local attorney for the unauthorized practice of law; a criminal charge classified as a class 1 misdemeanor. Although those allegations did not involve a homeowner association, it highlights a recurring issue for volunteer boards of directors for many organizations including homeowner associations and not-for-profit organizations on which attorneys serve. This article focuses on those issues facing boards for homeowner associations (“HOAs”) but the issues are similar for other volunteer boards of directors.

 

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In litigation, you can’t always get what you want (especially if you don’t ask)

October 30, 2014 on 12:34 pm | In Construction litigation, Contributors, General Interest, HOA litigation, John Tarley, Real Estate Litigation, State & Federal Litigation | No Comments

It’s a fundamental rule in Virginia that the Plaintiff (the person filing a lawsuit) can only recover the relief requested in the Complaint. In a recent unpublished decision, the Virginia Supreme Court reaffirmed the requirement that a party can only get relief if they ask for it.

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Lawsuits against HOAs are expensive and time-consuming for all

October 30, 2014 on 12:34 pm | In Common Interest Community, General Interest, HOA, John Tarley, State & Federal Litigation, Susan B. Tarley | No Comments

A Virginia Circuit Court case highlights the expense and time commitment required when a homeowner sues a common interest community (referred to as “HOA” in this article). Furthermore, this case illustrates that HOAs can rarely predict or control when they may be dragged into a lawsuit.

In this case, Hornstein v. Federal Hill Homeowners Association, a homeowner had her house for sale with a pending sales contract. Pursuant to Va. Code Ann. § 55-509.5, the HOA provided a disclosure packet that revealed that the homeowner’s fence was not located on her property. In fact, the homeowner’s own survey confirmed that fact. The pending sales contract fell through.

The homeowner sued the HOA in Fairfax Circuit Court for slander of title and tortious interference with contract, including a claim for “bodily injury,” and “mental anguish.” The HOA prevailed in the case, leading to the homeowner’s petition for appeal to the Virginia Supreme Court. [UPDATED: The Virginia Supreme Court refused to hear the case, meaning that the Circuit Court's decision stands].

Another battle has been waged regarding whether the HOA’s insurance carrier had a duty to defend the HOA in the underlying litigation. When the HOA’s insurance carrier denied coverage and representation, the HOA sued the insurance carrier. The case was removed to the federal court. The 4th Circuit District Court agreed with the insurance carrier. The HOA appealed and the 4th Circuit Court of Appeals reversed the trial court and held that the insurance carrier had a duty to defend. The insurance carrier has appealed for a rehearing. [UPDATED: the insurance carrier lost its appeal and was ordered to pay the HOA $217,308.86 for the attorneys' fees the HOA incurred].

For a brief review, the HOA provided the disclosure packet in February 2006. After the homeowner’s pending sale fell through, she sued the HOA in August 2007. As we near August 2010, the underlying case may be close to resolution, but litigation with the insurance company may be far from resolving. Based upon the amount of litigation, we can assume that the HOA’s attorneys’ fees have reached six figures. Obviously, payment for these attorneys’ fees is then passed onto the homeowners (unless the case shifts payment of the attorneys’ fees to the losing party, but even then, courts rarely award the full 100% of the incurred fees).

Many lessons can be drawn from this experience. Most importantly, HOAs need to review their insurance policies to make sure they are covered fully for worst case scenarios. Our experience has shown that “anybody can sue anybody for anything at any time.” Although the plaintiff may not win (and did not win in this case), the ensuing litigation will take abundant resources. We can help you review your documents and insurance policies with the necessary professionals to protect your HOA, and homeowner interests.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

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One important tip for your construction project – Change Orders

October 30, 2014 on 12:34 pm | In Construction litigation, General Interest, John Tarley, State & Federal Litigation | No Comments

The DPOR regulations require Class A Contractors to obtain written change orders “which are signed by both the consumer and the licensee.” This requirement sounds pretty reasonable and easy to maintain, yet the reality is that many contractors fail to fully comply with this provision, leading to possible problems down the road.

 

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Choosing your Virginia Business Entity

October 30, 2014 on 12:34 pm | In Business Planning, General Interest, John Tarley, Merger & Acquisition, Neal J. Robinson | No Comments

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There are many questions to ask and many issues to resolve when you decide to start your Virginia business entity. The time to ask those questions and resolve those issues is before you enter into your business agreement.

Neal’s 3-minute slideshow presentation gives an a brief primer on the forms of entities that are available and questions to start your dialog with your business attorney and business partners. This slideshow combines basic information with more advanced concepts for the more experienced entrepreneur.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

Neal Robinson

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Mediation and Arbitration – There is a big difference

October 30, 2014 on 12:34 pm | In Business Planning, General Interest, HOA litigation, John Tarley, Real Estate Litigation, Real Estate Strategies, State & Federal Litigation | No Comments

In conversations with clients, it seems that people misuse the terms “mediation” and “arbitration” more than most other legal terms. Although I do not have any empirical data, my educated guess is that many businesses and construction contractors (who did not depend upon advice given by an experienced business attorney) insert “arbitration” clauses into their contracts thinking that they mean “mediation.” Some transactions involving the sale of real estate include an arbitration clause. Countless times, clients involved in a potential lawsuit point to the “arbitration” clause, and are disheartened when I explain to them the arbitration process. Many thought they were avoiding the potential high costs of litigation. These terms are NOT interchangeable and in this blog post I will explain the basic differences between them.

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Emails from work computer can waive rights to privileged communications

October 30, 2014 on 12:34 pm | In Business Planning, Construction litigation, General Interest, HOA litigation, John Tarley, Real Estate Litigation | No Comments

We have written on the issues that arise when employees use their work computer for personal business. In that blog article, we referred to a California case in which an appellate court ruled that an employee’s emails to her attorney were not protected by the attorney-client privilege because the company had a written policy that informed employees that computers were not to be used for personal matters, that emails could be monitored to ensure that employees complied with the policy, and that employees should not expect any privacy in the use of their computers.

In local news, former Delegate Phil Hamilton raised a “marital privilege” objection to the use at trial of emails he sent to his wife. Certain communications to and from a spouse can be protected from disclosure. There were complicating factors to this case’s analysis.

 

Email

 

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Virginia Statute – HOAs must adopt “Cost Schedule” to recover copy costs

October 30, 2014 on 12:34 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | No Comments

The Virginia Code has provisions that provide members of condominium associations and homeowner associations with the ability to request copies of books and records. The statutes have also permitted  associations to recover the costs of copying the requested books and records.

This blog post highlights a new statutory provision affecting common interest communities. On July 1, 2012, HOAs and condo associations will only be able to recover these copying costs if the association has adopted a cost schedule.

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