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Does Homeowners have the right to recoup arbitration costs after president is recalled?

Started by RobinC • 9 replies • 1413 views

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RobinC (Florida)
Posts: 5
Posted:
The homeowners have followed the guidelines of F.S. Chapter 720 and are in the process of recalling the president of our homeowners association. The president has used the homeowner's monies to pay for the his defense, arbitration costs,printing and mailing expenses. Of course the treasurer is a buddy of his and has made the money available to him. It is no question that he will be recalled, but how does the homeowners get him to pay back the money he used for his defense? Does anyone know if there any mention of this in the Florida law? Has anyone else had this problem? Are the homeowners looking at a lawsuit against the ex-pres?
This has been very fustrating to the homeowners and any information would be helpful.
PeterD3 (Florida)
Posts: 708
Posted:
What defense?

If 51% of the HOs sign a Fl. state supplied recall ballot (document) to recall a/the director(s) there is no defense. BoD just needs to certify the ballots. Florida BoD Recalls do not need reasons just 51% of membership consent vote/approval.

Done Deal.
RobinC (Florida)
Posts: 5
Posted:
Peter,
The cost of filing the arbitration is $200.00 that was paid from the
association plus there is a cost of all of the proceedings that the
Department of Business and Professional Regualation imposes. Also money was used for legal consultation to a attorney that the soon to be "ex" requested. How do the homeowners recoup there money?
PeterD3 (Florida)
Posts: 708
Posted:
Typically BoD members are not personally responsible for the consequences of their actions on behalf of the association so long as they were not doing so while knowingly violating rules, laws, statutes, etc.

You have to prove he/she/they knew they were breaking the law.

Properly investigating or following due-process to certify a recall effort would not seem to be an abuse of authority by the BoD and thus you likely have no recourse to recover any monies involved in doing so.

KellyM3 (North Carolina)
Posts: 2,239
Posted:
Robin,

The homeowners invested their own money in recalling the HOA president. For a few hundred bucks, it's worth it if the slate is clean. Otherwise, the "fight" just continues. I'm curious why an HOA president would cling so tightly if presented with a majority of bona fide ballots requesting his/her removal from office. For a thankless, non-paying job? I'd recommend YOU become president and resign!
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Robin,

The homeowners invested their own money in recalling the HOA president. For a few hundred bucks, it's worth it if the slate is clean. Otherwise, the "fight" just continues. I'm curious why an HOA president would cling so tightly if presented with a majority of bona fide ballots requesting his/her removal from office. For a thankless, non-paying job? I'd recommend YOU become president and resign!
RobinC (Florida)
Posts: 5
Posted:
Kelly,

We believe (the homeowners) that the soon to be ex-pres. is clinging onto his job is because of the special favors he gets from the vendors
that he hires to maintain the property. Of course, he has the best lawn in the neighborhood and there is never an irrigation issue around his house. Also according to the check register, he has taken
money out of the association for "misc. expenses". Is tar and feathering outlawed in FL?
BradP (Kansas)
Posts: 2,640
Posted:
Robin:

well, if you tie an elephant to a parking meter in florida you must plug the meter, but not sure about tar and feathering.

This is what I would do, once you have removed el presidente I would have a committee pour over your books and bank statements in an effort to see what, if any, fiscal irresponsibility has taken place. If you find other suspected issues then I think it would be ok to try and lump the arbitration costs into any effort to recoup them. However, by itself, I don't know that I would press the issue as it may cost more to recoup than what you are lookign for.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
"Misc. Expenses" with no explanation......ehhhhhhh

With vendors hooking him up, allegedly, at least there's logic to clinging to power. Frankly, it would save me about 15 hours per week.....but maybe my perspective is a tad off base. I don't mind serving as it keeps me mentally sharp but would have no problems if the board wanted a change.
PeterD3 (Florida)
Posts: 708
Posted:

Within 5 business days after receipt of the recall ballots the BoD MUST call a meeting to certify.

If they choose not to meet then the recall is AUTOMATIC on the end of the 5th day by action of the law.

If they meet and choose to not certify then mandatory arbitration is required. Is this the clinging you refer to?

It is not up to the Pres. to certify or not but the whole BoD so I don't see how ONE PERSON can 'cling'.

There must be others involved...

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