RobertZ1 (Michigan)
Posts: 66
Posts: 66
Posted:
Voluntary HOA dilemma:
This story begins with a few homeowners in our HOA believing they could take control of the HOA by ordering the BoD to resign by petition(2/2008), then without that happening, declaring a special meeting of the members to remove and elect a new BoD.
We followed our Charter and BoD secretary sent USPS response letters (on our attorneys advice) that they were wrong in their actions and operating outside their scope and authority (cc to all BoD), that our Charter does not require the BoD to resign and their request was not received properly and was not in the possesion of BoD secretary (secretary received a copy, it was not at all legible. Attorney said request original, never sent to BoD). They responded by noticing meeting of members anyway without BoD secretary and Treasurer validating signatures and noticing meeting (violation of Charter).
In the midst of these actions the President and Asst Treasurer resigned. Both not wanting to be in the middle of a neighborhood battle and no matter what, no win situation was their belief.
After sending letters to these specific individuals telling them of their improper actions, we (BoD) received a letter from an attorney representing these individuals telling the BoD it had three days to turn over all possesions under threat of further action (4/2008). Our (BoD) first action was to seek advice of an attorney, who sent a response letter on behalf of the BoD. Their response was to continue to hold a meeting of NOW non-members (April 1, 2008 required dues to be current year member)and some of their HOA member supporters (remember we are voluntary).
After(BoD)hired attorney sent a response, then we were advised to file motion in court to stop action on part of the this group by same attorney if we want to maintain our right as the BoD. Our small HOA BoD members were told the best action to stop this was to ask for County Court to grant temporary restraining order/injunction/show cause order, against individuals that tried to take control of the BoD, we did that. (The BoD is the plantiff in the action after these individuals attorney sent notice telling the BoD to turn over all possesions to his clients). We(BoD) were given show cause order and preliminary injunction. They in turn gave an affirmative defense.
After all this we are now broke, the BoD had a special meeting and voted to drop the actions against these individuals due to NO funds to continue and in the red for the remaining legal costs.
We (BoD)now await action by them, because as we have been told by our insurer, if they sue us for our actions we are protected by our policy (as defendents in any futher action)) and we are still rightful governing body of the Association (by state, financial institution, and Association insurer.
Why did this have to go this far and cost this for our small voluntary HOA? What should we have done differently looking back? We have been told we did all we should have, but it stillseems so futile!
Thanks for any advice or comments.
This story begins with a few homeowners in our HOA believing they could take control of the HOA by ordering the BoD to resign by petition(2/2008), then without that happening, declaring a special meeting of the members to remove and elect a new BoD.
We followed our Charter and BoD secretary sent USPS response letters (on our attorneys advice) that they were wrong in their actions and operating outside their scope and authority (cc to all BoD), that our Charter does not require the BoD to resign and their request was not received properly and was not in the possesion of BoD secretary (secretary received a copy, it was not at all legible. Attorney said request original, never sent to BoD). They responded by noticing meeting of members anyway without BoD secretary and Treasurer validating signatures and noticing meeting (violation of Charter).
In the midst of these actions the President and Asst Treasurer resigned. Both not wanting to be in the middle of a neighborhood battle and no matter what, no win situation was their belief.
After sending letters to these specific individuals telling them of their improper actions, we (BoD) received a letter from an attorney representing these individuals telling the BoD it had three days to turn over all possesions under threat of further action (4/2008). Our (BoD) first action was to seek advice of an attorney, who sent a response letter on behalf of the BoD. Their response was to continue to hold a meeting of NOW non-members (April 1, 2008 required dues to be current year member)and some of their HOA member supporters (remember we are voluntary).
After(BoD)hired attorney sent a response, then we were advised to file motion in court to stop action on part of the this group by same attorney if we want to maintain our right as the BoD. Our small HOA BoD members were told the best action to stop this was to ask for County Court to grant temporary restraining order/injunction/show cause order, against individuals that tried to take control of the BoD, we did that. (The BoD is the plantiff in the action after these individuals attorney sent notice telling the BoD to turn over all possesions to his clients). We(BoD) were given show cause order and preliminary injunction. They in turn gave an affirmative defense.
After all this we are now broke, the BoD had a special meeting and voted to drop the actions against these individuals due to NO funds to continue and in the red for the remaining legal costs.
We (BoD)now await action by them, because as we have been told by our insurer, if they sue us for our actions we are protected by our policy (as defendents in any futher action)) and we are still rightful governing body of the Association (by state, financial institution, and Association insurer.
Why did this have to go this far and cost this for our small voluntary HOA? What should we have done differently looking back? We have been told we did all we should have, but it stillseems so futile!
Thanks for any advice or comments.