Virginia Supreme Court upholds arbitration award granted to homeowners who sued their HOA

October 30, 2014 on 1:19 pm | In Common Interest Community, HOA, John Tarley, State & Federal Litigation | No Comments

It is relatively routine for developers or “declarants” to include arbitration provisions into the declaration of restrictive covenants recorded to establish a common interest community. Generally, arbitration clauses are preferred by developers for a variety of reasons including avoiding a jury and having a say in the choice of the fact-finder. However, those decisions made by the developers have long lasting effects upon homeowner boards following transition, because it is difficult for a board to effect a change in the documents.

 

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Community Associations and Holiday Decorations: Trying to Preserve Holiday Cheer

October 30, 2014 on 1:19 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Mediation, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | No Comments

It’s that time of year when we start to see holiday decorations.  Yes, the stores have begun displaying Halloween items along with Thanksgiving, ChristmasHanukkahKwanzaa, and other holiday decorations at the same time. As we start to see the orange mini-lights for Halloween, condominium associations and property owner associations begin to deal with the issue of whether holiday decorations are permissible and if so, how long can they be displayed. Although when we read these stories, we may think that homeowners are over-reacting to a small issue, but what looks like a celebration of Halloween to one owner may seem way over-the-top to another. Rules for holiday decorations need to take into account ALL owners to be fair, effective, and enforceable. This blog post provides some common-sense guidance for your community association regarding holiday decorations.

Homeowner Associations

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2015 General Assembly Update for Virginia Community Associations

October 30, 2014 on 1:19 pm | In HOA, HOA litigation, Land Use Planning, Real Estate Strategies, Susan B. Tarley, Unit Owners Association | Comments Off on 2015 General Assembly Update for Virginia Community Associations

The legislation that passed the 2015 General Assembly Session is mostly helpful to Virginia HOAs–clarifying issues created by some legislation, and providing solutions for owner apathy and bank foreclosure problems for associations.

Virginia General Assembly - Legislation

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How is starting a business like getting married?

October 30, 2014 on 1:19 pm | In Business Planning, Merger & Acquisition, Neal J. Robinson | No Comments

I have often been struck by how much business counseling and marriage counseling can be alike.  “He said he was really good at marketing and was going to handle all the sales.  We haven’t seen a worthwhile sale in months.  All he does is drive around, I GUESS making sales calls, but mostly just spending money.”  “She said she was going to keep the books and handle the personnel issues.  I didn’t know that meant a row of shoe-boxes full of receipts and employee turnover at seventy percent!  This place is a disaster!”  “Turnover is at seventy percent because we don’t have enough sales to keep anyone employed.  If you did your job, then maybe I could do mine.”

Williamsburg Virginia Business Lawyers

Starting a Business

He said, she said.  And so it goes.  It is estimated that fifty-five percent of all first marriages fail and approximately 56% of new businesses fail within four years.  Here are some of the reasons most often given for start-up business failures.

 

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4 things your HOA needs to know about Virginia’s complaint process

October 30, 2014 on 1:19 pm | In Common Interest Community, General Interest, HOA, Real Estate Strategies, Susan B. Tarley | No Comments

In 2008, Virginia enacted legislation requiring condominium and property owners’ associations to establish reasonable procedures for resolving member and citizen complaints. The legislation further required the Common Interest Community Board (the “CICB”) to establish regulations for the associations to govern the complaint process.

 

What does this mean for your association? You will need to establish, or amend, your written procedures to comply with the regulations.

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How important are state statutes and case decisions in governing your HOA?

October 30, 2014 on 1:19 pm | In Common Interest Community, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association | No Comments

We discussed Governing Documents for homeowners associations and Governing Documents for condominium associations. These governing documents for your community association must be read in conjunction with certain state and federal laws. In this article, we will discuss those relevant laws that must be considered by your HOA.

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Mediation and Arbitration – There is a big difference

October 30, 2014 on 1:19 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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What Does It Mean to be on the Board of Directors of your HOA? Potential Liability (Part 2 of a Series)

October 30, 2014 on 1:18 pm | In Common Interest Community, General Interest, HOA, State & Federal Litigation, Susan B. Tarley | No Comments

We frequently are asked whether volunteer board members can be civilly liable for actions taken while a board member. This issue is of serious concern because lawsuits tend to be over inclusive, naming every possible defendant in the initial complaint. Why sign up as a volunteer board member if it could bankrupt you?

 

 

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Requests to Inspect and Copy Community Association or Company Records: Should it be this complicated?

October 30, 2014 on 1:18 pm | In Business Law, Business Planning, Common Interest Community, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association | No Comments

A Virginia Beach jury found a condominium association liable for failing to permit unit owners an opportunity to inspect and copy association records. Not only must the condo board allow inspection and copying, they must pay for an audit of the association records and pay $50,000 for the unit owners’ attorneys’ fees.

These questions arise frequently. This blog post reviews the various Virginia statutes that address the right to inspect and copy records for companies, HOAs and condominium associations.

HOA Filing Information

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Make sure HOA Document Amendments are properly certified

October 30, 2014 on 1:18 pm | In Common Interest Community, HOA, HOA litigation, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | Comments Off on Make sure HOA Document Amendments are properly certified

The Virginia Supreme Court’s opinion in Tvardek, et al v. Powhatan Village Homeowners Association, Inc. highlights how critical it is to not only amend your HOA documents in compliance with the law and your existing documents, but to make sure that the amended document that gets recorded properly memorializes that you did so.

The Tvardeks filed a declaratory judgment action in 2013 against Powhatan Village Homeowners Association, Inc. (“Powhatan Village”) to challenge a 2008 amendment to the association covenants that included a provision restricting the owners’ ability to rent their homes. Powhatan Village filed a special plea in bar requesting dismissal of the action as untimely citing the one-year statute of limitations in Va. Code Ann. § 55-515.1(E). Declining to hear any evidence, the Circuit Court made a decision on the pleadings and argument of counsel, ruling in favor of Powhatan Village’s argument that the claim was time-barred. The Circuit Court also awarded Powhatan Village $12,000 in attorney fees.

The Tvardeks appealed the case. The Virginia Supreme Court reversed the Circuit Court’s ruling, determining that the case was not barred by the one-year statute of limitations. The attorney fee award was also reversed.

Williamsburg Courthouse

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