There is a pending lawsuit against our members by five members of the association. Our condo is an over-50 years of age condo non-profit association without any care facilities. We paid an entrance fee (1/2 transfer price) and supplemental amount (1/2 transfer price) understanding that these payments were an investment and would be returned to us with some modicum of growth upon transfer of our units. Our association has used those amounts as a security deposit to force residents to continue to pay monthly occupancy fees if we have had to move for health or other reasons. We are forced to pay monthly rent even if we die and the unit does not transfer, expecting our family to pay monthly dues till unit transfer. Our assn. has refused to return the entrance fee which is 1/2 of total amount paid if member leaves/dies without a transfer of property, often leaving families unable to close an estate. These are sizable investments for the members who need that money to purchase long-term care in another facility or a new home or move to be with adult children in another state. Our former management company set up those rules, and our Board and assn. members had nothing to do with that provision. However, the 5 members are suing our association asking for ALL fees to be returned to them with 5% interest from date fees were paid, reimburse attorney fees, pay 2 mos. rent in punitive damages, allow them to them to lease their units for 3 years, with the provision that they then may terminate this lease with 30 days' notice. Considering we all signed a transfer agreement that we would transfer our own units, and considering that our members are not responsible for these condo laws, what can we do to preserve our estates and not go bankrupt if their lawsuit prevails? Shouldn't the 5 members be suing the Management Co. who set up those provisions? My entire family is moving out of state and I want and need to be with them--I'm 82 years old. My unit is up for sale, but with a lawsuit pending, it's unlikely to sell. I can walk away and leave the thousands of dollars I've invested in our condo. I understand for a nonprofit organization, even in bankruptcy we won't get anything--it will go to another nonprofit organization. What can we do to protect ourselves from this lawsuit and from bankruptcy?
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