Three Factors An HOA Should Consider When Hiring An Attorney
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.
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Zoning and “Adaptive Reuse” – What does that actually mean?
Watch out for email scams!
Email and telephone frauds are proliferating through the attorney community, and have been redirected at other professionals. On the message board for the Virginia Trial Lawyers Association, one of my attorney colleagues provided a story from one of his clients: “a consulting engineer who frequently testifies in litigation, was retained by a bonding company in Colorado regarding a dispute with a construction company in Pittsburgh. Luckily he smelled a rat when they announced that a disbursement would be run through his company account.”
“Aging In Place” – How can HOAs address aging communities?
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.
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Unauthorized Practice of Law: When unlicensed attorneys serve as HOA board members
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.
Can an advisor be held liable for the false statements in a prospectus made by another?
For all you accountants, investment advisors, and even attorneys who provide advice and guidance to companies or other entities raising money or other property for investment purposes, it might be a good idea to pay particular attention to the
United States Supreme Court opinion, when issued, in the case of Janus Capital Group, Inc. v. First Derivative Traders, No. 09-525 (S. Ct.). This case was argued before the Court on December 7, 2010. The Court’s opinion should be issued sometime during the first half of 2011.
Janus Capital Group, Inc. is somewhat factually and legally complex. However, in very simplified terms, First Derivative Traders is attempting to assert primary Securities Exchange Act Section 10(b) fraud liability against an entity,
Janus Capital Management LLC, that “helped” and “participat[ed] in” preparing a prospectus. The prospectus was actually that of, and was issued by, Janus Funds, a separate entity. Janus Funds had its own lawyers review the prospectus. Further, the Funds’ Board of Trustees, which was primarily responsible for it, reviewed it, as did the outside Trustees of Janus Funds, who also had their own counsel review it.
The United States (i.e., the Securities and Exchange Commission) filed an amicus brief in this case advocating such indirect liability in private actions, never mind the right of private action was judicially, not statutorily, created.

United States Supreme Court
Email scams (continued)
We have previously written a blog piece warning of increased email scam activity and sophistication. Expect more. Another victim of these email scams has come to light, and this victim was a lawyer. An article in Virginia Lawyer’s Weekly told the story of a lawyer victim of a successful email scam. This blog post provides another warning against these scams.
4 Tips to help your HOA protect its Attorney-Client Privilege
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:
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Attorney-Client Privilege: What is it and how do you protect it?
The attorney-client privilege permits confidential communication between an attorney and her client. The objective is to encourage open communication, which permits an attorney to provide thorough, competent and complete advice. Generally speaking, only a client can waive the privilege, but as found by the Virginia Supreme Court in Walton v. Mid-Atlantic Spine Specialist, PC, et al., a client’s inadvertent disclosure of a privileged communication may operate as a waiver of the attorney-client privilege.
In this Williamsburg medical malpractice case, a defendant doctor wrote a letter to his attorney calling into question his medical diagnosis he gave to his patient. The doctor kept this letter in a separate notebook. During discovery the defendant medical practice used a third party service to copy document requests. The letter was provided inadvertently to the plaintiff.
Although the defendant claimed that he did not produce the letter or permit anyone else to produce the letter, the Court found that the defendant did not take adequate protection to protect the letter. The Court noted that the notebook in which the letter was found was not marked as confidential or privileged. Furthermore, the Court held that the client did not take prompt action following disclosure.
The Virginia Supreme Court considered five main factors in determining whether the inadvertent disclosure waived the client’s privilege. The Court looked at: (1) the reasonableness of the precautions to prevent inadvertent disclosures, (2) the time taken to rectify the error, (3) the scope of discovery, (4) the extent of the disclosure, and (5) whether the party asserting the claim of privilege or protection for the communication has used its unavailability for misleading or otherwise improper or overreaching purposes in the litigation making it unfair to allow the party to invoke confidentiality under the circumstances.
As a start, clients should maintain attorney-client privileged communications in a separate file or notebook and clearly mark the file or notebook and each communication as “CONFIDENTIAL-ATTORNEY-CLIENT PRIVILEGED COMMUNICATION.” Then, if an inadvertent disclosure is made, the client should contact her attorney as soon as possible to determine a plan of action to restore the attorney-client privilege.
Tarley Robinson, PLC, Attorneys and Counsellors at Law
Williamsburg, Virginia
Airbnb and VRBO and your Home: Regulating The Shared Economy
The “Shared Economy”— where economic and social activity occurs directly between individuals with the help of an online format— is reshaping our national economy. Today we can easily monetize everyday assets, including your car and home, in ways that were previously impossible.
This innovation and advancement has not occurred without growing pains, many of which have occurred in the context of real estate. Airbnb, FlipKey, HomeAway, VRBO, and others have made it relatively simple to use your house, apartment or condo as a source of income, by renting all or part of it, to temporary or transient guests.
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