Facts Plaintiff, Coley, owns a home in an HOA, the Eskaton Village (“Association”). Two other Eskaton named entities (“Eskaton”) develop and support HOAs. A five-member board runs the Association, subject to the Declaration. Eskaton has always controlled three of the five directors on the Association Board because it owns 137 of the 267 units. The […]
Self-Dealing by Director is a Breach of Fiduciary Duty (Case 1) Read More »
Facts Defendant, Castletown Corner Owner’s Association, Inc. (“Association”), had a duty to maintain a lift station. Specifically, the declaration imposed an obligation on the Association to pay “all Maintenance Costs in connection with” improvements constructed at the Association. Maintenance costs are then defined as “all of the costs necessary to maintain the … sewers, utility
Language in Declaration Makes Association Strictly Liable Read More »
Facts Plaintiff, Ms. Carmichael, is on the board of directors of Commerce Towers Condominium (“Association”). On the board with her is Mr. Frese and Mr. Vickers. Mr. Vickers, Mr. Frese and Mr. Tarantino are the officers of the Association. (collectively “Officers”). All three are also the officers of Tarantino Properties, Inc. (the “Management Company”). Carmichael
Self-Dealing by Director is a Breach of Fiduciary Duty (Case 2) Read More »
The Business Judgment Rule can be a great protection for condo and HOA boards—but only if the board is following the documents. Facts. The Declaration for an HOA stated that the Board had the discretion to raise the “maximum annual assessment” without a vote of the homeowners as long as it was “in an amount
How is the Business Judgment Rule Applied to Board Actions? Read More »
Facts. The documents required the consent of the first floor unit owner if the second floor unit owner wanted to erect a terrace above a first floor unit. When the first floor unit owner refused to give consent, the Board waived the consent requirement and allowed the second floor unit owner to construct a terrace,
Who Says the Board Can’t Favor Resident Owners? Read More »
Mental health issues can impact community associations in a myriad of ways. Often Associations become the “reluctant care provider” (owners have no family/next of kin, or the family “dumped” the owner in the Association rather than in a care facility). This can be true of older residents (“aging-in-place”) as well of younger residents. The COVID
Tackling Mental Health and Aging Issues in Your Community Association Read More »
An owner violates the rules. The Board assesses fines to the unit owner. Will the fines hold up in a court of law? In this case, they did—and your Association can take note of what this Court says the HOA did right. Facts. In a 2017 case, an owner who lived in a subdivision with
A Board of Directors’ Right to Fine for Violations Read More »
