Board members liable?

Is it true that (in at least the state of Colorado) if any homeowner sues the Board and wins, the Board will have to pay for everything including court costs out of their own pockets instead of HOA insurance paying these costs?

I’m starting to understand HOA’s more and more with every post written. Are you saying if a HO sues the BOD and wins then the BOD should personally pay all the court costs? HMMMMM doesn’t sound right to me. Maybe so though I don’t know for sure!

Living in a volunteer HOA community, it is difficult enough to get HO to run for position on the BOD. If this were the case I believe this would intimidate many from wanting to volunteer. If your BOD is made up of all volunteers, then why would any HO take the chance of representing the community if they could possible be sued upon?

Chuck W.

Roger,

So it is true then. That’s no good. I’m running for position on the board. So potentially I could be sued? I know how difficult it is to get HOs to volunteer to be on the BOD. You don’t have to remind me. It’s sad but, true. One of life’s potentially largest investment, and yet there are some HO’s that could really care less. I hear some HO’s say “they hate HOA’s and they have done nothing for my property values” yet they have done nothing to improve the appearance of their home, either! The things I see make me thankful for an HOA! I will continue to pursue my interest in having a seat on the BOD. Although now knowing I can potentially be sued does frighten me some.

Thanks Roger
Chuck W.

RogerB made the statement: "That is why every Director should not only be covered by the HOA's insurance and protected by the "Corporation Shield" but should also add a rider to their personal homeowner's insurance." What type of rider should be added to a Board member's personal HO insurance? I have condo insurance. Thank you!

One of the things that I try to say to everyone that says they hate the HOA is that THEY are the HOA. If they are unhappy, then get involved. Everyone in our HOA was made well aware the HOA before they purchased the house, but since things got lasx over the years, CC&R violations are abundant. If is a really long road ahead for us three BODs, but we are chugging along letting the nasty comments slide off our backs.

Comes with the job I tell them.

Patrick

couple of things:

First, anyone can sue anyone in this country for anything. Period. Being sued is not something you can ever prevent. I could sue roger* right now, for letting his dog urinate on my flowerbed, despite the fact that we live in different states, roger doesn't have a dog, and i don't have a flowerbed. The judge will throw the case out, but roger would still have been SUED.

*thanks roger, for being my guinea pig example

HOA's should have insurance to cover lawsuits. In general, that's where the money comes from to pay a claim, should one be granted by the judge against the HOA. If there is no insurance, then the claim becomes assessed against the assets of the HOA, and guess what? Everyone in the HOA get's to pay it (ie, dues go up). Only if a judge summarily orders the payment against an individual will that person's assetts be in jeopardy. Can it happen? yes, but the judge would have to be really hacked at how badly a person acted outside of their role as board member (there would likely have to be VERY extenuating circumstances).

A person could try to sue (name) an individual instead of an HOA, but that's more rare, and would again require proof that the individual really went out of their way to be bad.