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

October 30, 2014 on 1:17 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

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Implementing an HOA Complaint Procedure – Slideshow Presentation

October 30, 2014 on 1:17 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association | No Comments

Still need information for your association’s required Complaint Procedure? Here is the slideshow for the Complaint Procedure Seminar Sept 2012 revised  Susan Tarley presented in Williamsburg in September 2012.

Susan Tarley

This slideshow presentation is provided for informational and educational purposes only. This presentation does not constitute legal advice and should not be relied on. Legal advice can only be provided after consultation with an attorney with experience in the area in which your concern lies. This is so because each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and/or documents at issue. Your use of this slideshow presentation and the information in it does not create an attorney-client relationship. Such a relationship can be created only with a written agreement signed by us and by you.


Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

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The Same Employer But a Different Result in this Virginia Supreme Court Case Regarding the Enforceability of Noncompete Agreements

October 30, 2014 on 1:17 pm | In Business Planning, Employment law, John Tarley, Merger & Acquisition, State & Federal Litigation | No Comments

Over the course of the past 20 years, the Virginia Supreme Court has tweaked the law governing non-compete agreements. In its latest case, the Court came full circle by invalidating a noncompete agreement that used the same language the Court had upheld 20 years earlier in a case involving the same company.

As we have written before, trial courts will enforce noncompete agreements when the agreements (1) are narrowly drawn to protect the employer’s legitimate business interest, (2) are not unduly burdensome on the employee’s ability to earn a living, and (3) are not against public policy. Importantly, the employer has the burden to prove each of these elements. When evaluating whether the employer has met that burden, trials courts should consider the “function, geographic scope, and duration” elements of the noncompete restrictions.  These elements are “considered together” rather than “as three separate and distinct issues.”

Further, if the noncompete agreement is too broad or otherwise unenforceable, a Virginia court will not rewrite, or “blue pencil” the agreement to make it enforceable. Therefore, it is important that you work with your business attorney to draft an enforceable non-compete agreement.

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Three Factors An HOA Should Consider When Hiring An Attorney

October 30, 2014 on 1:17 pm | In Common Interest Community, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association | No Comments

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.

Tarley Robinson

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Make sure you properly register your business

October 30, 2014 on 1:17 pm | In Merger & Acquisition, Neal J. Robinson | No Comments

From time-to-time we have counseled clients whose companies were formed in other states, but they are also conducting business in Virginia. One task that sometimes gets overlooked is the necessity to properly register their corporation in Virginia. That oversight could have disastrous consequences, including personal liability for officers, shareholders, and agents for corporate actions. Fortunately, Virginia’s State Corporation Commission gives us an informative primer on the necessary requirements, including the relatively simple steps to register your foreign corporation. Remember that if you have a Virginia company doing business in other states, it is most likely that those states require a similar registration process. Among the reasons you form a company is to shield yourself from liability. Make sure you have taken care of all your responsibilities.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

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Can an advisor be held liable for the false statements in a prospectus made by another?

October 30, 2014 on 1:17 pm | In Business Planning, Contributors, General Interest, Merger & Acquisition, Neal J. Robinson, State & Federal Litigation | No Comments
Williamsburg Virginia Business Lawyers

United States Supreme Court

Previously we blogged about a pending case before the Supreme Court that had the possibility to significantly increase the liability of persons for assisting in the preparation of a “prospectus.” As of June 13, 2011, the Supreme Court handed down an opinion in that case, styled as Janus Capital Group, Inc. v. First Derivative Traders, No. 09-525 (S. Ct.).

The determination of this case is relevant to accountants and business lawyers who assist in the preparation of documents for the purpose of raising money for investment. The Janus Capital Group, Inc. case presented the question of who may be deemed to have “made” an untrue statement for the purposes of Rule 10b-5, and specifically whether someone who assisted in the preparation of a prospectus could “make” a statement through such assistance. As the result of a 5-4 decision, accountants and business attorneys may breathe a little easier. Continue reading “Can an advisor be held liable for the false statements in a prospectus made by another?”

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Virginia Attorney General opinion on HOAs

October 30, 2014 on 1:17 pm | In Common Interest Community, HOA, HOA litigation, John Tarley, Real Estate Litigation, Real Estate Strategies, Unit Owners Association | No Comments

In Virginia homeowner associations, the governing documents permit a developer to continue control of the HOA’s Board of Directors for a specific period of time, or until a specific number of lots are sold. The length of that period depends upon the governing documents of each association.

HOA

This issue has generated litigation in Williamsburg, and now, thanks to Peter Vieth from Virginia Lawyer’s Weekly, we have learned of a formal opinion from the Virginia Attorney General. In an opinion dated January 11, 2013, the AG answered two questions posed by Virginia Senator Bryce E. Reeves. This blog post takes a look at that opinion.

Is the Property Owners Association Act Unconstitutional?

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Small Business Break-Ups – The High Cost of Litigating a Forced Separation

October 30, 2014 on 1:17 pm | In Business Planning, John Tarley, State & Federal Litigation | No Comments

A recent Virginia Supreme Court Case, Cattano v. Bragg, illustrates two points we have made time and time again: 1) Make sure your small business is prepared for an eventual “divorce” between the shareholders; and 2) Litigation is very, very expensive.

In this blog post we will review the Supreme Court’s decision and provide some tips for your small business so that you can avoid the calamity that occurred in this case, which included an attorneys’ fee award of over $260,000 for the prevailing party.

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HOAs and Transition from Developer Control – 101

October 30, 2014 on 1:17 pm | In Business Law, Business Planning, Common Interest Community, HOA, HOA litigation, John Tarley, Susan B. Tarley, Unit Owners Association | No Comments

Owners in most community associations—both homeowner associations and condominium associations—eventually reach the point where the developer transfers control of the Board of Directors to the owners. This blog post provides an introduction to the transition process and what owners can expect.

Susan Tarley

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What can an HOA Board do if members question whether the President acted properly?

October 30, 2014 on 1:17 pm | In General Interest | No Comments

Susan Tarley answered a question that was published in the March/April 2013 issue of the Common Ground, the Community Association Institute’s Magazine for Community Association Leaders. Here is the question and answer.

Question

Our bylaws state that no reimbursement shall be given for services rendered by any board member unless voted and agreed on amongst the board members. I am a board member, and our association president has submitted bills totaling more than $600 to our management company without board approval and has been paid. A review of the past years minutes indicate no such vote was taken. We feel the president has his own monetary agenda and does not care about our community. I understand we can file a petition with 67% of the unit owners signing to have him removed, but we just want our money. What can we do?

Williamsburg Virginia HOA Lawyers

Board of Directors

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