Board negotiating an settlement without owner's consent

An owner in our HOA did some work on their unit and ended up flooding some storage spaces on HOA property. This resulted in damage and loss of goods for a few homeowners. A dollar amount was placed on the lost itmes by an outside company. The offending owner was originally going to pay the affected parties, but then was advised not to do so by their insurance company. The board held an Executive Session meeting in order to collect payment from the offending homeowner. The board proceeded to negotiate a settlement on behalf of the affected parties for less money than the items had been valued at. The affected members were not invited to the meeting and had not given permission for the board to negotiate a lower amount for them.

Did the board have the authority to negotiate and accept a lower amount on behalf of the affected homeowners?

Thanks

Is the storage place owned by the HOA? What is that arrangement? Do the owners rent the space from the HOA or is it included in the dues? That would be important information to know. It is possible the HOA could negotiate on behalf of the owners depending on who is responsible for the storage space and how it is handled.

In Arizona the answer would be a very emphatic "NO!." Rule 31 of the Arizona Rules of the Supreme Court prohibit non-attorneys from representing anyone other than themselves. The rule defines the practice of law as, among other things, "negotiating legal rights or responsibilities for a specific person or entity."

The Arizona State Bar has the power to enforce that rule by obtaining an injunction in the Superior Court at the offending party's expense. I think you can find similar language in the California code.

No matter what settlement the BOD negotiated, the individual property owners are not bound by it. Their remedy from the outset has been to make a demand for restitution on the person who caused the damage and then file suit if he fails to pay.