As a follow-up to our post on the costs and benefits of the arbitration process, the Federal Trade Commission (“FTC”) recently issued a report indicating that the litigation and arbitration practices for resolving consumer debt need major reform.

Debt collection cases are on the rise.  We have seen a tremendous increase in the number of cases we are filing on delinquent homeowner association dues. In James City County/Williamsburg, the local courts have seen a 27% increase in civil filings from 2006 to 2008.  Other courts in Virginia and other states are experiencing similar increases in civil filings.

The FTC has made specific recommendations that the Federal government and the states consider new laws to protect consumers including a recommendation that a temporary ban be placed on the use of binding arbitration until such time that the arbitration forums have initiated changes to address deficiencies in arbitration. The FTC has suggested that state legislatures adopt measures to make it more likely that consumers will defend themselves in litigation, decreasing the prevalence of default judgments; require debt collectors to include more information about the alleged debt in their complaints; take steps to make it less likely that collectors will sue on debt on which the statute of limitations has run; and change laws to prevent the freezing of a specified amount in a bank account including funds exempt from garnishment.

We do not believe that these changes, if they occur, will effect our current practice areas and clients. However, we have also seen instances in which perceived procedural unfairness can lead to overreaching legislation. For example, it is fair to say that when the Fair Debt Collection Practices Act was passed, legislators did not intend for it to reach into the wide-ranging areas it now does, including the collection of homeowner dues. See, e.g., Barry v. Board of Managers of Elmwood Park Condominium II, NT Slip Op 27506, http://caselaw.findlaw.com/ny-civil-court/1211140.html (December 12, 2007, NY Civil Court City of New York, Richmond County) (Judge Philip S. Straniere writing that “Somehow I think that Adams, Jefferson and Madison must be turning over in their graves at the thought that the federal government is regulating such a local activity as the collection of condominium association dues between the homeowner and the association”).

Arbitration tends to release pressure on state courts by handling cases that otherwise would be brought in court. However, if the process continues to be perceived as unfair, restrictions on the use of arbitration could be forthcoming.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

The 2014 session on the   (“LAC”) created new experiences for our committee. Each year on the LAC brings new challenges, and in my second year as Chair of the LAC, we experienced our most active General Assembly session.

The LAC’s mission is to monitor and advocate for legislation affecting HOAs and condominium associations. All of the bills cited below are effective July 1, 2014 unless otherwise noted.

Continue reading “2014 Legislative Update for Virginia HOAs”

This blog post comes from Jason Howell, our 2011 Summer Associate when he was a rising third-year law student at the William & Mary Law School. Jason is working with us this summer and debuts his first blog post.

Negotiation can be challenging. Whether you are negotiating the terms of a business agreement, trying to buy or sell property, or settling a dispute, getting to an agreement can be difficult. Even if you are successful in getting the other side to negotiate with you, you may feel at a disadvantage or worry that there is something in the final negotiated agreement you are missing.

Hiring an experienced attorney to represent you can give you advantages that can help you get to an acceptable agreement. By using an attorney in your negotiation, you can benefit from the attorney’s knowledge and skill, which can help you to reach your negotiation goals.

Continue reading “Do you need an attorney to negotiate on your behalf?”

Frequently, a homeowner contemplating renting out his property believes that he will be able to save money by writing his own lease or using a do-it-yourself lease form found or purchased online. Almost as frequently, the homeowner realizes too late that if he had spent a little money up front to have an attorney prepare a lease, or at least review his proposed lease, he could have saved himself a lot of time, money, and aggravation. By the time problems arise with a tenant, it is too late to ensure that the lease contains all of the provisions necessary to protect the homeowner’s interests.

Continue reading “I want to rent my house to a tenant, do I need an attorney to draft a lease for me?”

Hard to believe that the CAI Law Seminar in Las Vegas was 7 weeks ago.  I have been meaning to report on the seminar but the practice has kept me very busy.

The Law Seminar provides a unique learning opportunity to discuss emerging trends, practices and legislative issues important to the practice of community association law. Attendees include attorneys, management professionals, and other industry leaders.

The Law Seminar was excellent this year! I attended education sessions each day that were well-presented, topical, and detailed.  My colleagues in the HOA and condominium industry have a lot of experience to share.

I attended a session that reviewed a case study on Repair Projects, Special Assessments, Association Divisiveness and Litigation.  This session provided a lot of good information.  Two of the attorneys involved in advising the association, and in defending the subsequent litigation, provided an in-depth analysis of a community that needed to move forward on repair projects but did not have sufficient funds in its reserve account.  (Sound familiar?).  The program identified the issues faced by the community, the challenges of getting consensus from the owners on the needed repairs, and the solution that the board pursued.   There are many communities in Virginia that have aging infrastructures and will soon, if not already, be facing the challenges of making repairs and having the money to do so.  The presented case study provided a road map for a major repair project.

I also had the opportunity to serve on a “Panel of Pundits.” Along with colleagues from Colorado, Massachusetts, Hawaii and New Jersey, we fielded questions from the audience concerning community association issues.

Attorneys that make the effort to attend and participate in events like these help us all to stay current on issues that affect HOAs. That enables us to provide better service and advice to our clients. Because the law changes quickly, make sure your HOA law firm stays current.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

Susan Tarley is attending the 2014 CAI Legal Seminar in Las Vegas this week. This seminar brings together all of the leading community association legal professionals and is chock-full of interesting classes. As stated in the brochure, “The Law Seminar provides a unique learning opportunity to discuss emerging trends and legislative issues important to the practice of community association law.”

On Wednesday night, Susan will attend the dinner for all attorneys who have been admitted into the College of Community Association Attorneys (“CCAL”). Susan is one of fewer than 150 attorneys nationwide to be admitted to CCAL, for distinguishing herself through contributions to the evolution or practice of community association law.

On Thursday afternoon, Susan will be a panelist on a Panel of Pundits. This panel of six distinguished HOA attorneys will field questions via Twitter, text message, computer, and in person. If you have a question, click here for the details and ask it!

On Friday, Dan Abrams from ABC is the keynote speaker. Finally, on Saturday, there are sessions discussing issues HOAs face in collections and insurance.  

Our attorneys participate and take leadership roles in our areas of practice in order to provide our clients with fully informed advice. By participating in events like the annual CAI Legal Seminar, we do our best to serve our clients.

This case has been overturned by statute. Check out this blog post for the details.

We have written about the importance of operating agreements to help succession planning for your limited liability company (“LLC”). Operating agreements can help the company with procedures to remove a member, or with procedures to permit a member to leave the LLC on his own accord. This blog post reviews a recent Virginia Supreme Court case that shows the importance, and limitations of your LLC operating agreement to set forth succession planning of a member’s interest when that member dies.

LLC Agreements

Continue reading “Limited Liability Companies: What happens to an LLC when a Member dies?”

We frequently blog on the importance of cooperation and relationship-building in your homeowner association or condominium association. Here is an easy and practical way to build your association’s camaraderie as James City County is sponsoring a Good Neighbor Environment Matching Grant for the fall of 2013.

The county’s stated purpose of the grant ” is to enhance the sense of community and environmental wellness of our neighborhoods through the development and accomplishment of a neighborhood sustainable landscape beautification project.” Consequently, the two categories for the grant are Physical Improvement/Sustainable Landscaping and Multi-Neighborhood Project Partnerships.

The grant is not limited to “formal” HOAs or Condo Associations, as any neighborhood association or neighborhood committee authorized “to manage and/or maintain the common areas of a community” may apply. However, such a neighbor association or committee has a few more obstacles to overcome to apply.

Applications are due on September 30, 2013, and the grants will be announced on October 15, 2013. We will make this information known to our association clients, but anybody is welcome to pass along this link to the application. Let us know if we can help your association apply for this Good Neighbor grant.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

This week, at the newly renovated Omni Homestead Resort, the annual Virginia Leadership Retreat will take place. For this event, community managers and their management company executives, guest speakers, and the community association attorneys and service providers from all parts of Virginia will meet to discuss this year’s topic: Building Community Association Intelligence.  Susan Tarley served on the VLR Planning Committee and helped put together a program with an exciting slate of interactive classes to encourage participatory learning for all attendees.

John Tarley will teach classes at the VLR, discussing topics about which we blog frequently. John is teaching “Mission Possible? The Dynamics of Group Decision-Making,” and will be the Square-Master for “Hollywood Squares – Your Mission Has Begun.”

The VLR provides us with an opportunity to mingle with other industry professionals so we can provide better service for our clients.  The golf, spa, and Jefferson Pools are pretty nice, too!

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

We have blogged about the many changes coming to your community association as a result of 2013 legislative changes. As an additional service, we are providing free seminars in Williamsburg and Newport News to review those changes. Susan Tarley will discuss what the Association and its members can expect in this FREE seminar.

See this flyer for details! 

Contact:

Monica Godman at Tarley Robinson, PLC to reserve your seat!

(757) 229-4281 or  mgodman@tarleyrobinson.com

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia