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Subject: Responsibility for Legal Fees
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Author Messages
JimJ3
(Florida)

Posts:1


09/01/2010 9:52 AM  
If an HOA board is being removed without cause, can they use Association funds for legal fees to defend removal? The majority of our homeowners have requested by petition that our board be replaced with new members. Can an action taken by the board, which has been disputed by a majority of our members, be defended legally with association funds? Prior notice was not given to the membership of the action taken. However, the action effected all HOA members.
SusanW1
(Michigan)

Posts:5035


09/01/2010 10:34 AM  
"Without cause" means they can be removed by the will of the Membership. They serve at the pleasure of the membership, who makes that determination by motion and vote.

If the membership removes them, there is no legal recourse. Except that they could try to get the votes to stop the motion.

This is not a court of law thing, it is corporation board positions and procedures of that corporation.

Just be sure the procedure for removal is done correctly. They can get the motion declared null and void if not done correctly.
DonnaS
(Tennessee)

Posts:5671


09/01/2010 10:57 AM  

Jim,

What action did the Board take without notice to the membership? The Board does have some authority to take actions without members involvement so what exactly did they do?

Boards are elected to maintain and govern the association without everything going to the members. That is their job as elected officers. I assume you did a recall according to the Florida Statutes? If you remove the Board, you will need to have a special election to elect new Board members. A bunch of H.O's just cannmot step in to fill the positions. They must be appointed or elected. Are you recalling the enitre Board?
DanielH1
(California)

Posts:481


09/01/2010 11:43 AM  
Yes, but it may depend on your documents.

Until the Board is removed, they are still the Board. They can (usually) employ lawyers with a simple Board vote. In this case, the purpose of employing lawyers (to try to stop/invalidate a recall) is an HOA matter and will be paid by the HOA. It may not seem fair.
JonD1
(New York)

Posts:706


09/01/2010 4:44 PM  
Jim it would help if you provided more detail.

What actions have the "majority" of the owners taken to remove the Board?
What actions are they planning to take?

If you will be attempting a recall under your documents I would suggest those supporting this effort read carefully and understand completly the contents and procedures required to remove the Board.

You may have present a petition for a special meeting. The wording and content can void the petition if not completed or presented properly.

What exactly has the Board done to cause such a seemingly large group to now demand their removal?

And working from the conclusion back IF the actions are successful who will be assuming the roles vacated and are they qualified to do so.

One last question if a majority now wants to remove the Board how did they come to hold office in the first place.

IMO simply because you have a majority holding an opinion doesn't guarantee it is the correct opinion or course of action. Sometimes a small few are successful in gathering support for their views despite their views being flawed.

DonnaS
(Tennessee)

Posts:5671


09/01/2010 4:59 PM  

Jon,

Those are exactly the same questions that I have. What I really want to know is what would start a recall for "WITHOUT CAUSE" That is allowed by the Florida Statutes but there has to be a real cause somewhere.
JonD1
(New York)

Posts:706


09/01/2010 7:41 PM  
"Can an action taken by the board, which has been disputed by a majority of our members, be defended legally with association funds? Prior notice was not given to the membership of the action taken. However, the action effected all HOA members."

Seems like Jim is being vague about the details.
Most Board actions affect all HOA members.

It would be helpful to know what deed they did to deserve the wrath of the majority of property owners...........
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Forums > Homeowner Association > HOA Discussions > Responsibility for Legal Fees



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