A recent case reported in Virginia Lawyers Weekly highlights the significant financial risk to homeowners associations (“HOAs”) when sidewalk maintenance is neglected. In this case, a resident tripped on an uneven sidewalk—maintained by the HOA—and suffered severe injuries. The injuries required surgery and 10 months of treatment, resulting in $200,000 in medical expenses. The plaintiff also lost valuable time from their online retail business. Ultimately, the case was settled for $650,000 before a lawsuit was even filed.
This scenario serves as a reminder HOAs to evaluate their responsibilities under their governing documents. Here are several steps HOAs can take to reduce liability and protect their communities from similar claims:

1. Conduct Regular Inspections

HOAs should establish a schedule for inspecting sidewalks and other common areas. Look for hazards such as uneven pavement, cracks, and other trip-and-fall risks. Inspections should be documented, as records can serve as evidence of diligence in case of a claim.

2. Prioritize Repairs Promptly

When issues are identified, repair them as soon as possible. In the case mentioned, the sidewalk had a two-inch height discrepancy—a tripping hazard that could have been addressed through grinding, leveling, or slab replacement. Delaying repairs increases the risk of accidents and makes claims harder to defend.

3. Enhance Lighting

Poor visibility can exacerbate sidewalk hazards. Installing streetlights or sidewalk lights can help residents navigate safely at night and deter potential accidents. Lighting improvements are a relatively small investment compared to the cost of a personal injury claim.

4. Consider Risk Transfers

HOAs should review their insurance policies to ensure adequate coverage for premises liability. Additionally, HOAs may consider hiring third-party contractors for sidewalk maintenance and ensuring these contractors carry proper insurance.

5. Communicate with Residents

Encourage residents to report hazards promptly. Open communication creates a partnership between the HOA and the community to maintain safety.

6. Consult Legal Counsel

If your HOA is unsure about its responsibilities or how to implement these steps, consult an attorney experienced in HOA law. Proactive legal advice can help reduce risk and ensure compliance with applicable regulations.

Lessons from the Case

This $650,000 settlement underscores how expensive negligence can be. By implementing regular maintenance schedules, prioritizing safety improvements, and ensuring proper insurance coverage, HOAs can mitigate these risks. Taking proactive measures is not just about avoiding lawsuits; it’s about creating a safe and welcoming community for all residents.

Boards of Directors are empowered by statute in Virginia and often times by the governing documents of the community association to enact rules and regulations concerning common areas, common elements, recreational facilities or other areas of association responsibility.  Rules related to the use of common areas or common elements and recreational facilities should be based on concerns about safety, sanitation and nuisance.  In certain instances a Board of Directors may want to enact a rule to address the activities of children – limiting their pool time, forbidding children under a certain age from using recreational facilities or prohibiting certain activities on common areas or elements.  Be careful, the rule you enact may violate the federal and state Fair Housing Act.

According to a Complaint filed against a Chesapeake condominium association, the association had a “Group Sports Activity” rule that banned organized sports activities in the common areas without approval of the board. Concerns were raised whether this rule banned activities such as a parent and child passing a football.The Commonwealth of Virginia’s Fair Housing Board filed a housing discrimination lawsuit against Cedarwood Condominium Association, a Chesapeake condominium association. There have not been many of these lawsuits.

Continue reading “Ban on kids playing football = housing discrimination lawsuit against Virginia HOA”

The Common Interest Community Board (the “CICB”) revoked a management company’s license for regulatory violations.  In a case reported in the September issue of the Community Associations Institute Law Reporter (Virginia Common Interest Community Board v. Sarraga t/a Lakeside Community Management, File No. 2010-00562, June 24, 2010), the CICB revoked the license of Sarraga t/aLakeside Community Management and issued fines totaling $2,000.

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Well, we have written about protecting the attorney-client privilege and about safe emailing tips when emailing your attorney. Although we thought we had it pretty well covered, a recent decision from a California appellate has given us something more to think about.
Continue reading “Using your business’ computer to email your attorney may be a bad idea”

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.

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

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

Selecting an attorney is one of the more significant decisions made by the board of directors for a community association. Often times, the association makes its decision based upon price alone. Although “price” is a valid factor to consider, there are other important factors the board should review during its selection process. This article addresses three of the major considerations.

First, the board should determine the prospective attorney’s experience level in the representation of community associations. Attorneys for common interest communities are similar to the general counsel in major corporations because of the wide range of issues that arise. Extensive experience in many of the possible legal issues facing community associations should be a prerequisite.

Continue reading “Three Factors An HOA Should Consider When Hiring An Attorney”

When we think of the challenges of overseeing homeowners associations, we might think of overgrown lawns, late assessment payments, and aggressive pets.  But another challenge has been waiting in the wings:  the aging of America’s “baby boomer” generation, many of whom are choosing to live out their golden years in their homes.  This rising trend is presenting new and unique challenges for Community Associations.  It is the wave of the future and the future is now.

Continue reading ““Aging In Place” – How can HOAs address aging communities?”

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.

Continue reading “Unauthorized Practice of Law: When unlicensed attorneys serve as HOA board members”

The Attorney-Client Privilege protects confidential communications between an attorney and his or her client.  This privilege includes communications made to the attorney and communications from the attorney. The Attorney-Client Privilege is designed to encourage clients to communicate with their attorney freely, without fearing disclosure of those communications made in the course of representation. The Attorney-Client Privilege is important because it permits clients to give their attorney complete and uncensored information, enabling their attorney to provide informed and thorough legal advice.

For community associations, the Attorney-Client Privilege belongs to the association and can only be expressly waived by the a decision of the association board or executive organ. However, the privilege can be impliedly waived based on the client’s conduct.  A determination on whether the privilege has been waived will depend on the specific facts of each case. The association will have to establish that the attorney-client relationship existed, that the communication is privileged, and that the privilege was not waived.

Here are four basic tips for the board of your Common Interest Community to follow so that it protects the association’s Attorney-Client Privilege:

Continue reading “4 Tips to help your HOA protect its Attorney-Client Privilege”