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Subject: BOD fidicuary responsibility
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Author Messages
WallyP
(Texas)

Posts:2


07/22/2010 7:44 PM  
The BOD hired contractors to replace roofs, move AC condensers to allow roofers to perform work & re-connect AC condensers. Many of the units are weekend homes are are not occupied for months at a time. Several months after roof work was performed, an owner arrived to find the AC condenser inoperative. AC was operational prior to roof work but not after. Homeowner hired an electrician recommended by the PM to perform temporary (& non-code) repair to get AC unit operational. Electrician states the damage appeared to be caused by pulling on electrical connections & damaging wires encased in rigid conduit. Homeowner paid electrician & asked the board for reimbursement plus having repairs made to be code compliant. Board will not reimburse HO & will only make a 30% contribution towards proper repair. HO disagrees with decision. Would the BOD have a fidicuary
responsibilty to file a claim with the contractors GL insurance company thereby not spending HOA or HO monies?
MaryA1


Posts:0


07/23/2010 8:44 AM  
Wally,

If the BOD doesn't believe the electrician that the h/o hired they can hire their own electrician to make a determination. However if the problem was caused by the electricians who replaced the condensers then the HOA is liable to reimb the h/o's expenses -- IN FULL. Then the HOA would go after the contractor who did the work for them. The h/o cannot go against the contractor because he did not hire them.
NancyG1
(North Carolina)

Posts:31


07/23/2010 10:38 AM  
WallyP - You didn't mention what the cost of repairs were. As a suggestion you may want to check with the BOD and see what kind of insurance they have. You could try to put in a claim under their policy for property damage. May be worth a phone call to check out. The cost maybe under their deductible. Can't imagine why they wouldn't pay the entire bill and then go after the contractor. If it doesn't work there is always small claims court which isn't that expensive to file a claim and ask that they reimburse you the court cost. Just make sure you have all the information needed. Did the BOD say why they would only make a 30% contribution?
SteveM9
(Massachusetts)

Posts:1442


07/23/2010 1:24 PM  
Can't imagine why they wouldn't pay the entire bill and then go after the contractor.


Because its the easy way out. Sounds like they are lazy and just want to see if you will settle.
WallyP
(Texas)

Posts:2


07/23/2010 4:52 PM  
Posted By NancyG1 on 07/23/2010 10:38 AM
WallyP - You didn't mention what the cost of repairs were. As a suggestion you may want to check with the BOD and see what kind of insurance they have. You could try to put in a claim under their policy for property damage. May be worth a phone call to check out. The cost maybe under their deductible. Can't imagine why they wouldn't pay the entire bill and then go after the contractor. If it doesn't work there is always small claims court which isn't that expensive to file a claim and ask that they reimburse you the court cost. Just make sure you have all the information needed. Did the BOD say why they would only make a 30% contribution?




Temporary repairs were $380. Estimate for proper & compliant repair is $600-$800. additional.
reasoning:
"The decision made and confirmed by our Board of Directors is that the Association will not share in the $380.00 bill you received from Mr. XXXXXXX. The repairs made by him were not per code and were not agreed to by the either the managers or BOD. However, we will share 1/3 of the cost up to a maximum limit of $250.00 to repair the wiring and install the proper disconnect switch to your A/C condensing unit on the flat roof."
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Forums > Homeowner Association > HOA Discussions > BOD fidicuary responsibility



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