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Forums > Homeowner Association > HOA Discussions
Subject: HOA Legal Fees
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Author Messages
JanetB2
(Colorado)

Posts:1335
09/03/2010 9:36 AM  
Question: In CO if an owner files a lawsuit against the HOA ... if the HOA looses are attorney fees the HOA incurred assessed against all lots including the individual who filed the lawsuit?
TimB4
(Virginia)

Posts:3247
09/03/2010 10:39 AM  
Janet,

I expect that this would be the case in every state unless a court order banned the association from collecting from you and I don't think they can do that as equal application of assessments is typically part of the contract you entered into with the Association (the contract being the governing documents).

Tim

JohnB26
(South Carolina)

Posts:487
09/03/2010 2:00 PM  
YES
BrianB
(California)

Posts:2381
09/03/2010 2:47 PM  
Yup.

so, depending on the size of your HOA, the winning side of the lawsuit recovers 19/20ths, 44/45ths, 299/300ths, etc.
MaryA1


Posts:0
09/03/2010 3:24 PM  
Janet,

Normally the legal fees are paid by the HOA; however if funds are not available then the BOD may need to ask for a special assessment which would apply to all members even the one who sued the HOA -- unless something to the contrary is explicitly stated in your gov. docs.
JanetB2
(Colorado)

Posts:1335
09/05/2010 12:18 AM  
Thank you!!! We are in a really big mess with our HOA. The current homeowners have tried everything possible to avoid litigation, but it is appearing that may be our only option.
SusanW1
(Michigan)

Posts:5035
09/05/2010 7:29 AM  
Janet - the HOA is a corporation, so that is the entity that will go to court or be sued, or whatever. The indivual members can't be individually liable for the actions of the HOA.

Years ago 2 people (actually 1 and the estate of the other since one died) sued the HOA and all residents because they were riding a snowmobile on our streets and hit a parked car. Everyone got named in the lawsuit - the HOA, the owner of the car, the members indivudually were named, - deep pockets.

The Members were protected and dropped from the lawsuit.

It was settled out of court by insurance companies for the HOA and the car owner.

So check your insurance coverage for the HOA for lawsuits filed against it.
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Forums > Homeowner Association > HOA Discussions > HOA Legal Fees


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