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Subject: Owner suing HOA counsel, and owner filing derivative suit: real-life stories?
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JohnS111
(New York)

Posts:165


04/20/2019 2:23 PM  
Has anyone:

1. Seen an owner of a home in a HOA go after the HOA's counsel for damages?

For example, if the HOA's lawyer did something improper and caused damage to an owner, have you seen an owner go after the HOA's lawyer and recover damages, or get some kind of compensation?

2. Seen an owner in a HOA file a "derivative suit"? This is a lawsuit that the owner files herself, on behalf of the HOA, usually after the owner demands that the HOA file the suit and the HOA doesn't.

I'm a lawyer, and I know the law on these topics; I'm not asking for legal advice.

I'm asking for real-world stories about how these situations played out in real life.

For example, when an owner filed a "derivative suit", did the other members of the community cheer her on? When an owner went after the HOA's counsel, did the board fire the counsel? Further, what if an owner filed a "derivative suit" against the HOA's counsel, alleging legal malpractice; did the HOA's board just stay out of the way?

Thanks. Again, I don't want or need legal advice; I'm just looking for anecdotes and people's recollections about how the community responded to situations such as these, and what happened in the end.

AugustinD


Posts:1886


04/20/2019 3:06 PM  
Years ago an old guy in my HOA filed a lawsuit pro se, making around a dozen claims against the HOA Board and HOA. The old guy named various directors (past and present) and the corporation as defendants. The HOA attorney motioned to dismiss about half the claims, because they were (1) derivative; (2) violated the local court rules requirements for a derivative action; and (3) violated a local court rule that requires corporations to use a licensed attorney. The judge granted the motion.

A tiny percentage of the HOA members cheered on the pro se plaintiff. After two years, all the pro se plaintiff's claims had been dismissed through motion practice. The pro se plaintiff lacked sophistication. If he were smarter, he might have been able to do the legwork to meet the requirements for a derivative suit. But he would still be stuck with hiring an attorney for the half dozen or so claims that were derivative, as required by the court rules for corporations.
JohnS111
(New York)

Posts:165


04/20/2019 4:12 PM  
Thanks, AugustinD!
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