HOA Board Negligence
Claims Against Homeowner Associations
Negligent HOA Boards – Board Members

  • Has your board failed to make roof repairs causing damage to your unit?
  • Has the common area plumbing been leaking causing damage to your unit?
  • Has your unit experienced flooding from the common area?
  • Does your condominium building have serious construction defects that your board fails to remedy?
  • Has your condominium suffered diminution of value due to the negligence of the board?
  • Are you or your loved ones suffering from the effect of mold in your home?

If the answer is yes to any of these questions, you have found the right website.

The Kayser Law Group is one of a few HOA law firms in California that represents individual homeowners in claims against their association on a contingency basis. Most HOA law firms represent only homeowner associations.

A legal claim against an owner's homeowner association should only be made when it is clear that the board will not remedy a legitimate complaint involving CC&R compliance that is of a serious nature. Examples include failure to maintain common areas leading to water intrusion, mold, major cracks, or earth movement. Our firm generally represents individual homeowners on a contingency basis and usually advances some or all of the out of pocket costs in connection with these claims. Call us to discuss your claim.

The most common claim made by the owners of condominium units against their homeowner associations is that their unit is experiencing water intrusion because the association has failed to maintain the common area. Generally, this involves leaking roofs, decks, planters, walls, and windows, and there is often improper slopes and drainage. When a condominium unit owner makes a claim against the association, it is often because the statute of limitations has run and therefore a claim cannot be made against the developer of the condominium project.

When a condominium unit owner has exhausted his or her patience with the board and files a lawsuit against the association, (not the board), the association will almost always contact its insurance company. Assuming there is coverage, the insurance company will hire a law firm to represent the association and the law firm will hire the appropriate construction experts needed to investigate the situation and provide advice on how to remedy the problem.

As part of the process, the plaintiffs attorney will hire one or more experts to provide advice and repair cost estimates.

After all experts have completed their investigations, have developed a scope of repairs, and cost estimates, a mediation session will be arranged so that the parties can avoid further litigation and settle the matter short of going to court. In 95% of these matters, the dispute is settled in mediation.

Settlements usually, but not always, consist of the following:

  • The association agrees to repair the common area in a manner that is acceptable to the experts working for the plaintiffs attorney;
  • The association agrees to pay the plaintiff a dollar amount sufficient to make interior repairs and pay for loss of use; and
  • The association agrees to pay all of the plaintiffs attorney fees and costs.

Most importantly, depending upon the insurance coverage, the cost of settling the case will be paid in part or completely by the insurance company.

 

Sewer Line Leaks and Breaks

As the average age of common interest developments in Southern California gets older over time, more associations are experiencing sewer line leaks and breaks. These repairs and/or replacements can be very costly because many of the pipes are located under buildings and mature landscaping. To make things worse, many older CC&Rs are unclear as to whether the association or an individual homeowner is responsible for the cost of sewer line repairs or replacements. Obviously when a sewer line leaks or breaks, the responsibility for the repair should not lead to a discussion or dispute. Board members are encouraged to make certain that the responsibility for such repairs is clearly and unambiguously set forth in the association's CCRs long before a break or leak take place.

 

When HOA Operating Rules are Unenforceable

HOA operating rules cannot be enforced when they violate laws, are contrary to the association's CC&Rs, infringe on homeowner rights, are discriminatory, vague, or arbitrary. They must also be adopted according to California law. These so-called operating rules may conflict with federal , state, or local laws, violate fair housing acts, or infringe on rights such as the freedom to assemble, the freedom of speech, religious freedom, or the right to bear arms. Rules may also be unenforceable if they are selectively or inconsistently applied.

A few examples of unenforceable rules are: (1) unreasonable restrictions on political signs, (2) unreasonable restrictions on the installation of solar panels, (3) unreasonable restrictions on the installation of EV charging stations, (4) certain bans on pets, and (5) unreasonable restrictions on the use of water-saving plants and the installation of artificial turf.

When HOA Board Elections Don't Comply with the Law

Sometimes the election of HOA directors is challenged by one or more members claiming that the election process did not comply with the strict requirements of the law. If a court agrees, the ramifications can be absolutely devastating to the association. If the challenging members prevail, the so-called board was a non-board and any decisions made by the group can also be challenged and reversed. This can cause never-ending problems including litigation and massive legal fees. Things that can be challenged and possibly reversed because they were not approved by a lawfully elected board include:

  • The creation of operating rules and fines;
  • Hiring of vendors, contractors, and others;
  • CC&Rs and operating rules enforcement decisions;
  • Assessment collection actions;
  • Approval of expenditures; and
  • Assessment increases.

If you are on the board of an HOA, don't let this happen to you. Hire a knowledgeable and experienced inspector of elections. Take no chances.

 

Duty of Board Members to Attend Board Meetings

Board members have a nondelegable duty to attend board meetings. Missing an occasional board meeting is understandable but, absent a good reason, board members are expected fulfill their fiduciary duty by attending board meetings. As set forth in the California Corporations Code, a director has the duty to diligently perform the duties of a director. This duty is not discretionary. Also, as set forth in the Davis-Stirling Act, directors have the duty to monitor the association's finances. The failure to attend board meetings means the director is missing the treasurer's report and cannot ask questions about revenue, operating expenses, reserve expenditures and collection activities. An association board member who refuses to participate or makes himself or herself unavailable may lose his or her legal protections. This could result in personal liability. There is no reason for board members to miss meetings because they are permitted to attend via phone or Zoom.

 

Lawsuits Against Individual Board Members

Lawsuits against individual board members do not take place often, but such lawsuits do get filed and they are usually very serious when they occur. Depending on the claims asserted, the association's insurance policy mayor may not cover the cost of defense. HOA liability insurance policies generally cover board members who act within the scope of their responsibilities.

HOA board members may be personally sued for violating their fiduciary duties. These lawsuits typically include one or more of the following allegations: (1) Conflicts of interest; (2) Libelous or slanderous statements; (3) Violations of privacy; (4) Grossly inadequate oversight; (5) Self-dealing ; (6) Discrimination, retaliation, or harassment; (7) Conspiracy to violate the law; (8) Assault; (9) Embezzlement; and (9) Willful violations of the association's governing documents.

In most situations, board members are protected by the Business Judgment Rule, and the association's Bylaws, assuming they: (1) Act in good faith, (2) Act within the scope of their authority, (3) Act with reasonable care, and (4) Act in the best interests of the association.

 

HOA Board Negligence

818-658-1600

 

 

The information on this site is not, nor intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship.


 

Kayser Law Group serves the following areas:

Los Angeles County, Ventura County, San Fernando Valley, South Bay, Simi Valley, Santa Clarita Valley, San Gabriel Valley, Thousand Oaks, Agoura Hills, Calabasas, Westlake Village, Burbank, Glendale, Santa Monica, Hollywood, Camarillo, Moorpark, Oak Park, California, Newbury Park, Malibu, West Los Angeles, Encino, Tarzana, Oxnard, Pasadena, Woodland Hills, Sherman Oaks, Studio City, Torrance, Inglewood, Beverly Hills, West Hollywood, Santa Clarita, Valencia, Bakersfield, Orange County, Fresno, Long Beach, Ontario, Anaheim, Riverside, San Bernardino, Fontana, Visalia, Rancho Cucamonga, Corona, Lancaster, Palmdale, Victorville, Murrieta, West Covina, Costa Mesa, Downey, Santa Maria, Santa Barbara, Pomona, Stevenson Ranch, San Diego, San Jose, San Francisco, Sacramento, San Jose, Santa Ana, Stockton, Irvine, Chula Vista, Fremont, Modesto, Oxnard, Ventura, Rancho Cucamonga, Camarillo, Hawthorne, Simi Valley, Santa Clara, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, Indio, Coachella, Chula Vista, Escondido, Oceanside, Huntington Beach, Antelope Valley, La Verne, San Dimas, Claremont, El Monte, Baldwin Park, South Pasadena, El Cajon, National City, San Marcos, Vista, Santee, Hemet, Eastvale, Jurupa Valley, Morongo Valley, Menifee, Perris, Lake Elsinore, Anaheim, Newport Beach, Orange, Laguna, Irvine, Huntington Beach, Yorba Linda, Mission Viejo, Fullerston, Dana Point.

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