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Subject: Yacht Club Economic Loss Rule
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Author Messages
RichardL7
(Colorado)

Posts:75


06/03/2011 7:43 PM  
I found an interesting topic from Colorado called the Yacht Club Economic Loss Rule. On reading the information I’m somewhat at a loss to understand fully just what the implications are on this. Can it be explained in some what of a laymens understanding and is the law still valid???.

Do I understand correctly that workers hired by the management Company can be held liable for damage if repair work is substandard or faulty and property is damaged? I find that the Management Company will use workers that are not fully qualified or don’t have a full understand of what they are doing. Most of them if not all are R & R men, that is remove and replace and hope for the best.

The Management Company and HOA looks for a cheap way out and it has cost me money big time. One problem is that the management company manager (of 66 units) has no idea of quality workmanship, no followup's on repairs and the Board takes what ever they find that is cheap. Workers are hired and get the job but no one checks the work to see if it is done correctly, They just don’t have the expertise for the job and will TRUST anyone
Thank You
Richard.
TimB4
(Virginia)

Posts:16704


06/03/2011 8:03 PM  
Posted By RichardL7 on 06/03/2011 7:43 PM

Do I understand correctly that workers hired by the management Company can be held liable for damage if repair work is substandard or faulty and property is damaged?




Richard,

Not having any idea on what article you are talking about, I would have to say that the answer would be, it depends. It would depend on the language in the contract that people agree to.

For example:

I just read a proposal given to us for some landscape work where it was the contractors responsibility to have the underground cables marked. However, the contractor would not be held responsible for any damage to a cable, marked or unmarked, or any issues that might be caused by a cable they might damage.

Obviously, we didn't accept the proposal.


Tim
GlenL
(Ohio)

Posts:5491


06/05/2011 1:15 AM  
Tim, I believe this is the article the OP is referring to: http://www.hollandhart.com/newsitem.cfm?ID=687


Richard it is the Economic Loss Rule which basically states you have to have a vested interest in something before you can claim a loss. So yes if the HOA hired a contractor to do a fence repair and the specs or common practice required each board to be fastened to the fence with 3" deck screws and the builder used finish nails instead, he would be negligent and the HOA could go after him.

Studies show that 5 out of 4 people have problems with fractions
MelissaP1
(Alabama)

Posts:9136


06/05/2011 4:25 AM  
This is why we tried to ONLY hire contractor's that are licensed and insured. If the company wasn't licensed or insured we did not select bids from them. They had to have atleast 1 million dollar policy as a minimum.

The board should insitute a rule with the MC that ONLY contractors insured and licensed are allowed to work on the property. However, there may be exceptions to the this rule for some type of dollar amount or work level. Like any bid over 100 dollars has to be insured. This gives some lead way for some work to be done that shouldn't cause an issue like cleaning bathrooms at a clubhouse etc...

Former HOA President
TimB4
(Virginia)

Posts:16704


06/05/2011 8:02 PM  
Thanks for that link Glen. Interesting article.

Tim
RichardL7
(Colorado)

Posts:75


06/05/2011 10:15 PM  
First let me say thank you for all who have responded. I feel the information I must learn is beyond my time frame or ability.
In January of 2011 I was able to attend HOA meeting. Medical reasons stopped me from do so for many years prior to this. This is just some of the problems I encountered. No Web page for our association, or I should say the year 2000 was the last report, Yes 2000. No education of any type was offered or even brought to our attention. In fact I find many of the home owners were not given any information (Colorado Law??). Refusal of the Management Company to list the physical address and not a postoffice box, ( even when informed of the fact) In fact I could sight section after section that was ignored or the Management Company had no idea of. Refusal to act on complaints. $35,000.00 Dollars of unpaid due’s for 66 units. In short negligent on upholding the bylaws and CCIOA Rules.

Apathy in the HOA is just as great as the homeowners if that could be possible. . It was not until January of this year that I start complaining about this and request that the Board and Management company comply with the laws. That went over like a lead balloon. What I’m trying to make apparent is that the association is going down hill in the proverbial handbasket. And it must stop. I don’t think I need to become an attorney or legal analyst to make them understand their duties, but I do try. So, thing don’t get taken care of, reports go unanswered or ignored, and I’m looked on as a enemy when I request that they abide by the laws of the association and CCIOA’s requirements. I feel that apathy is more prevalent in the HOA then with the Homeowners, if that could possible be. So my friends, I try to learn all I can and fight a fight I’m not educated sufficiently in. It’s like O.J.T type of schooling. So goes the story and I will keep pushing for the betterment of the complex. I have every reason to think this is the reason I’m the last one to get assistance on a repair request, or no answer at all. I’m no attorney and I’m limited on knowledge or understanding of the law as written, but will keep trying. At 72 Y.O.A. I don’t have many years. I just want a leverage point I can use to make them comply.
Thanks for your time and understand. Your assistance and Web Page is just great. Again my thanks for your help and the help you have offered to all who have request it. GREAT JOB.
GlenL
(Ohio)

Posts:5491


06/06/2011 4:36 AM  
Richard, they may not be doing their jobs and trying to collect past due assessments or they may not be able to tell you what they are doing. I would suggest you visit your local County Court's website, if it is like ours there will be two options Civil / Criminal, go to the Civil side and type in your Associations name. Every lien / foreclosure / lawsuit your HOA is involved with should come up. You may have to hunt around a little but the info or lack of should be there. Good luck, repairing a broken HOA is like eating an elephant; you have to do it one bite at a time but eventually the elephant will disappear.

Studies show that 5 out of 4 people have problems with fractions
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