Get 2 months of free community web site hosting from Community123.com!
Friday, October 18, 2019
Get 2 months of free community web site hosting from Community123.com!
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Lawsuits and Virginia HOAs
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
SamanthaB3
(Virginia)

Posts:2


07/31/2019 7:54 AM  
Hello.

This question pertains to HOAs in Virginia. At what point does the HOA have an obligation to notify homeowners that there was a major lawsuit settlement? Or do they not have an obligation? Do they have to let the homeowners know that there is pending litigation but if they pay out, do they have to let the homeowners know that? When does a lawsuit have to be disclosed in the Disclosure packet?

Thanks.
Sam
AugustinD


Posts:1934


07/31/2019 8:34 AM  
-- Did the insurer pay the settlement?

-- Regarding a settlement that occurred: A good resource might be a CPA. Start by googling on {GAAP lawsuit settlement disclosure corporation}. My understanding is the financial statements usually or always must reflect any settlement. Hopefully the CPA can respond to situations where there is a non-disclosure agreement.

-- Virginia statute requires HOAs to disclose, on behalf of sellers, "A statement of the nature and status of any pending suit or unpaid judgment to which the association is a party and that either could or would have a material impact on the association or its members or that relates to the lot being purchased." See https://law.lis.virginia.gov/vacode/title55/chapter26/section55-509.5/ .

-- If I recall correctly, usually a "pending suit" only exists when a party has been properly served papers filed in a court. The phrase is not to be taken colloquially. Whether a "pending suit" exists is a question for a well-qualified HOA attorney.
SheliaH
(Indiana)

Posts:2701


07/31/2019 9:14 AM  
What AugustineD said.
PaulJ6
(New York)

Posts:319


07/31/2019 12:39 PM  
Posted By SamanthaB3 on 07/31/2019 7:54 AM
Hello.

This question pertains to HOAs in Virginia. At what point does the HOA have an obligation to notify homeowners that there was a major lawsuit settlement? Or do they not have an obligation? Do they have to let the homeowners know that there is pending litigation but if they pay out, do they have to let the homeowners know that? When does a lawsuit have to be disclosed in the Disclosure packet?

Thanks.
Sam




Settlements are often confidential. Thus the HOA might be prohibited from disclosing a settlement, by the terms of the settlement (even if it's the HOA that required a confidentiality provision in the settlement agreement).

HOAs may have to provide information to home sellers about ongoing or pending litigation so that sellers can comply with disclosure requirements to home buyers. But not necessarily.

I don't have knowledge about this that is specific to Virginia, though.
TimB4
(Virginia)

Posts:16481


07/31/2019 12:42 PM  
Hi Samantha,

The Board should, but is not required, to inform the membership about any legal action that is happening or the actual outcome of any legal case.


The board is required, per statute, to inform a buyer via the disclosure statement, if there is currently any legal action happening (actual cases that have been filed with the court and have not been resolved, not pending or threats of cases).


Have you tried asking the Board?


If your financials show legal fees as a separate line item, any costs within that category should be questioned by the membership (in my opinion).

Hope this helps,

Tim
SamanthaB3
(Virginia)

Posts:2


09/01/2019 10:44 AM  
Thank you everyone for the replies! I thought Virginia required this information in the Disclosures but it is good to have backup.

S
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Lawsuits and Virginia HOAs



Get 2 months of free community web site hosting from Community123.com!



News Articles Provided by: Community Associations Network
News, articles and blogs about condos/HOA's

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice:  (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.

Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement