HOA Litigation: Is it avoidable?
We have written previously on the costs—both in time and money—for homeowners and condominium associations to litigate cases. On one hand, boards of directors have a fiduciary duty to uphold the governing documents of associations, but on the other, the board must investigate alternatives to the divisive nature of litigation.
As it turns out, sometimes there is no alternative because a homeowner can sue an HOA, forcing the association to defend. But what efforts can or should a homeowners or condo association take to avoid the consequences of litigation?
A series of recent Virginia cases highlights the consequences associations can face in litigation cases. This blog posts provides a brief summary of those cases and some cautionary advice.
Board of Directors Meeting
Virginia HOAs and Olde Belhaven – Guest Post on Construction Law Musings
Once again, my friend and colleague, Richmond Construction Law attorney Chris Hill, permitted me the opportunity to blog at his award-winning blog Construction Law Musings. You can get a lot of great information on construction law, including the intricacies of mechanic’s liens, from Chris and his blog. You can also follow him on Twitter, @ConstructionLaw.
For Chris’ blog, we wrote a post exploring the Olde Belhaven case that made it into the national media. Our take is that we must remember that HOA Governing Documents are drafted by counsel for the developers, and when the developers leave, the enforcement of those restrictions is left to the volunteer Boards of Directors of your neighborhood.
Here’s a brief excerpt of the post:
A recent case highlights what happens when an Association’s Board of Directors, trying to uphold its fiduciary duty by enforcing and upholding its governing documents goes head to head with homeowners, both believing that they are in the right. . . .
Our experience is that the volunteer Boards of Directors, when faced with tough choices, try to make decisions consistent with their fiduciary duties, in an attempt to protect the rights of all the owners in the neighborhood. That doesn’t mean they always make the right decisions, but these ordinary people are not ogres, either.
Read the complete blog at Construction Law Musings, as well as many other informative posts on Chris’ outstanding blog. Thanks, Chris!
What Should You Expect From Your Attorney?
I read a recent article in the ABA Journal that differentiated between the teaching of “issue spotting” versus “problem solving” in law schools. This article strikes at the core of the services we provide as attorneys. We believe firmly that although it is our responsibility to help identify potential issues that you may face, our legal advice is fully realized when we help you solve your problems.
Continue reading “What Should You Expect From Your Attorney?”
What Does It Mean to be on the Board of Directors of your HOA? Potential Liability (Part 2 of a Series)
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?
What happens when your business partner wants to leave? Do’s and Don’ts
It’s a simple fact of business life that you and your company’s fellow shareholders or members will not always see eye-to-eye. Furthermore, our personal lives change and that effects the level of willingness in which some participate in a business venture.
As in any relationship, businesses also reach that awkward stage in which a shareholder or member wants to leave his current business venture and start something new. We have discussed starting your business and provided guidelines for setting forth the rules for governing your business. This article addresses some of the difficulties that arise during the “break-up period.” For the purposes of this article, we will use the terms “shareholder” and “member” interchangeably, as well as the terms “director” and “managing member.”
One important tip for your construction project – Change Orders
The DPOR regulations require Class A Contractors to obtain written change orders “which are signed by both the consumer and the licensee.” This requirement sounds pretty reasonable and easy to maintain, yet the reality is that many contractors fail to fully comply with this provision, leading to possible problems down the road.
You obtained a judgment against your construction contractor, how do you collect?
Sometimes your dispute with your contractor goes all the way to court and you obtain a judgment. However, sometimes the contractor does not have the ability to pay the judgment, so financially, you are out-of-pocket your judgment damages plus your attorneys’ fees. You may have one last alternative to recover at least a portion of your losses through the Virginia Contractor Transaction Recovery Fund (the “Recovery Fund”).
Williamsburg Courthouse
I want to rent my house to a tenant, do I need an attorney to draft a lease for me?
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.
Limited Liability Companies: What happens to an LLC when a Member dies?
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?”
2-Minute Drill Weekly Tweets for 2012-06-08
- Blog Post:: Okay, how do we establish a funding plan for our Reserves? (Part 2 of a 3 part series on Reserves) http://t.co/JdDLVDNp #
- Benefits of Community Associations: How is Covenant Enforcement Good for Owners? #HOA #Condo http://t.co/34eOIZmT RT @VirginiaHOALaw #
- Blog Post: Same Employer But a Different Result in this Noncompete Case from the Virginia Supreme Court http://t.co/g4v4SGJ1 #
- Very interesting new VA law provides grants to those who investment in small businesses http://t.co/yZYcfO1i MT @VABarAssn via @rtdnews #
- Blog Post: HOA & Condo Swimming Pools not covered by new DOJ rules unless. . . . . http://t.co/yVWw19iN #in #
- All Aboard! Ozzy sued by HOA for extending their backyard onto the common area. http://t.co/GChH3PdO MT @AccellPM via @civil_litigator #
- Blog Post: Can I cut down my neighbor’s tree when its branches overhang my property? http://t.co/0xgFmGLG #in # Continue reading “2-Minute Drill Weekly Tweets for 2012-06-08”