HOAs and Management Companies – Does your contract say what you think it says?

October 30, 2014 on 1:22 pm | In General Interest, HOA, HOA litigation, John Tarley, Unit Owners Association | No Comments

Many boards of directors for community associations engage management companies to help the board operate their community. These relationships arise from written contracts negotiated by the parties. It is essential that homeowners’ associations and management companies have their contracts reviewed by their experienced HOA attorney.

When determining the terms of a contract, Virginia courts employ what is known as the “plain meaning” doctrine. This doctrine basically means that when an agreement is clear, a court will look to the ordinary meaning of the words of the contract itself. Consequently, the parties need to ensure that all of the terms they believe are part of an agreement are in the written contract itself.

A recent Virginia Supreme Court case presents a prime example of why it is important to have your association attorney review contracts between community associations and management companies. Continue reading “HOAs and Management Companies – Does your contract say what you think it says?”

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Stop in the name of the…homeowner association! – Can private HOA security forces pull you over?

October 30, 2014 on 1:22 pm | In Common Interest Community, General Interest, HOA, HOA litigation, John Tarley, Unit Owners Association | No Comments

Virginia’s Attorney General, Mark R. Herring, published an advisory opinion concerning private security forces used by community associations (the “Opinion”). These security forces often act as quasi-police departments and help relieve localities by providing routine patrols in private communities. In the Williamsburg area, the local police often defer to HOA security forces for regular patrols, and health and safety checks. When it comes to more serious police action, like issuing traffic tickets and arresting homeowners, the roles and authority of HOA security forces becomes less clear. This blog post discusses the role of private security forces in homeowners’ associations and the Opinion that addresses some of these concerns.

MC900283147

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How is starting a business like getting married?

October 30, 2014 on 1:22 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.

 

Continue reading “How is starting a business like getting married?”

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When might a Virginia business be liable for unemployment compensation?

October 30, 2014 on 1:22 pm | In Business Planning, John Tarley, Merger & Acquisition | No Comments

In the Greater Williamsburg area, many small businesses face seasonal layoffs when the summer tourism season ends. For small businesses, these layoffs lead to questions regarding unemployment compensation. In this blog post, we will discuss the issue of when an employer can be liable for the unemployment compensation for a terminated employee.

 

Generally speaking, an employee terminated by you may be otherwise eligible for unemployment benefits, chargeable to your company if:

The basic qualifications for unemployment compensation are:

Once you have been determined to be the “employer” liable for unemployment compensation, you are responsible for all the benefits payable to that former employee. Unless extended benefits have been approved, the maximum benefit is 26 times the weekly benefits payable to the employee.

The weekly benefits are found in a table at Virginia Code § 60.1-602. This table is regularly updated, it tells you how much a person would receive per week in unemployment, based upon the amount they made when employed. For example, if a person made $6,300 in the prior twelve weeks when employed, he would receive $125 per week in unemployment, and a total of $3,250, if he were employed for the entire 26-week period.

The possibility of being liable for unemployment compensation worries many small business owners. Discuss the issue with your business attorney so that you can plan properly for your employment needs.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

 

jt photo 150x150 Using a company computer to email your attorney may be a bad idea

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

October 30, 2014 on 1:22 pm | In Common Interest Community, General Interest, HOA, HOA litigation, 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”).

 

Continue reading “Smile! You’re on HOA Meeting Camera! Can I videotape my HOA meeting?”

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Simple Tips for Effective HOA Due Process Hearings

October 30, 2014 on 1:21 pm | In Common Interest Community, General Interest, HOA, HOA litigation, John Tarley, Unit Owners Association | No Comments

This blog post focuses on addressing one major source of discontent in community associations: due process hearings for alleged violations of the community’s governing documents or condominium instruments.

HOA Due Process Hearing

Homeowners want fairness

Complaints about HOA due process hearings can be split into at least three different categories:

  • Before the hearing, the Board
    • did not attempt to settle reasonably;
    • did not explain variance procedure; or
    • did not properly send notice of violation or opportunity to cure.
  • During the hearing,
    • The Board was disorganized;
    • A Board member was rude;
    • The Board was not prepared for the hearing;
    • The Board did not give owner time to gather/present case; or
    • The Board did not view property/alleged violation.
  • After the hearing,
    • The Board did not give valid reasons for decision; or
    • The penalty was unreasonable.

Continue reading “Simple Tips for Effective HOA Due Process Hearings”

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Why you should have a buy-sell agreement with your business partners

October 30, 2014 on 1:21 pm | In Business Planning, John Tarley, Merger & Acquisition | No Comments


As we have previously noted, if businesses are analogous to marriages, then the start-up of businesses begins with the “honeymoon” stage in which the business partners believe that they have similar visions of the company’s rosy future. Things change.

The list of “things that change” is long including the death, retirement or disability of your business partner; you or your business partner wanting to sell your interest in the company; or one of you wanting to add another business partner. What do you do then? Continue reading “Why you should have a buy-sell agreement with your business partners”

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What are Condominium Instruments?

October 30, 2014 on 1:21 pm | In General Interest | No Comments

In our last blog we discussed Governing Documents for homeowners associations. Condominium communities also have governing documents. However, the terminology we use to refer to these documents is “Condominium Instruments. “

What comprises the Condominium Instruments?

Continue reading “What are Condominium Instruments?”

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Update for Limited Liability Companies: What happens to Membership Interest when a Member Dies?

October 30, 2014 on 1:21 pm | In Business Law, Business Planning, John Tarley | No Comments

We blogged about the Virginia Supreme Court case of Ott v. Monroe. In that case, the Court ruled that when a father, in his will, assigned his majority interest in a limited liability company to his daughter, he only assigned a profit interest, not a control interest. Consequently, his daughter did not have the authority to “run” the company, absent the consent of the remaining LLC members.

In its 2013 session, the General Assembly modified the relevant LLC statutes in an attempt to overturn the Virginia Supreme Court’s decision. This blog post examines the new statute, and how it may impact your limited liability company.

Business Deal
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Benefits of HOAs Part 4: What do homeowners really think about their associations?

October 30, 2014 on 1:20 pm | In Common Interest Community, HOA, HOA litigation, Jason Howell, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | No Comments

We’ve mentioned already the abundance of news articles criticizing community associations. If these news stories are to be believed, then associations are unpopular indeed. But is it true that residents living in community associations are unhappy with their association? Research by the Community Associations Institute suggests that it is not. In fact, the research suggests that more people than ever are choosing to live in communities with associations, and the overwhelming majority of those people are happy with their association.

Statistics compiled by the Community Associations Institute show that the number of associations continues to grow. In 1970, just ten thousand communities, with a combined 2.1 million residents, were governed by associations. Today there are over 309,000 communities governed by associations. More than 62 million Americans live in associations. 1.75 million volunteers serve on community association boards, and a full 26 percent of the eligible U.S. population volunteers for an association at some point during a year, according to one estimate. That kind of service simply would not happen if associations were as widely disliked as has been portrayed.

Williamsburg Virginia Business and HOA Lawyers

Common Interest Communities

Continue reading “Benefits of HOAs Part 4: What do homeowners really think about their associations?”

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