Condo Association Management Blog

So, the board has advice from legal counsel that they will ignore? 
 
 
 
I would resign before the vote. That way, you could not be tied to the vote. I would speak to an attorney. As a board member, you may be able to speak to the Association's legal counsel, asking him the board's liability if sued and the D&O coverage. I would also talk to the insurance agent to answer your question on the coverage.

I suggest that at the meeting you make a motion to limit the term of the contract to five years stating that this is necessary in order to comply with your governing documents and the advise of the Association's attorney. That motion should then be in Association records. Then when the minutes are read before they are approved, object to the minutes as written if they do not include your motion and vote. That way you are doing what you can do to protect yourself legally. As for being personally liable, read what your governing documents say about indemnification and also check with your Association's insurance carrier. We have two policies, one is for the buildings, etc, and the other is to protect Board and Committee Members.

Is this for a Comcast MDU Contract by any chance...?

1.I'm a board member of five and I would like to know, when it is time to vote on an issue, dosen't it require three board members to be present to hold a vote. 
 
 
 
2. I was told that board members can vote using there computers at home if they cannot attend a meeting, is this legal?

Is this The Wimbledon in Boulder perhaps? 

BTW, I was talking with a Comcast rep regarding these contracts and he said they are a mess. My association was talking about this and I totally disagree with forcing everyone to use one vendor and told the board so.

No you would not be at risk but the Board Members who knowingly violated a provision of the bylaws could well suffer the consequences. By ignoring the 5 year restriction the hwill fail to meet their fiduciary responsibilities and will forfeit the immunity they think protects them.

When a board knowingly violates their gov docs if a lawsuit happens the D&O may not cover them. However, if you voted "no" and your vote is recorded in the minutes (make certain it is!) then the D&O should cover you. Any board member who knowingly violates a state law or the assn's gov docs also violates his fiduciary resp. to the assn and should be immediately removed from the BOD. Instead of a lawsuit, the members should be thinking about a recall -- it's much cheaper and will get rid of the errant board members. A lawsuit will cost the assn thousands of dollars and will not remove the board members from office and there really is no guarantee who will will the suit.

It is no surprise that once again, a condo owner is faced with having to try to reign in an association via lawsuit, and know they will be using his own money to fight him. 
 
 
 
No condo law has any teeth in it to check or fine out of control boards- it is all on the poor owners to go broke trying to do so in perhaps long drawn out legal battles, with questionable outcomes. In the long run, as long as there are no checks and no penalties in the law on these boards, the longer these types of issues will continue to plague owners.

Serola, 
 
 
 
The problem is not that there aren't any checks and balances on the board members but rather that every state does not have a dept to adjudicate HOA disputes. Sadly, not every state even has condo or planned community laws. Until this changes a homeowner has no other recourse but to take his dispute to a court of law. That's just the way it is and will always be until the state decides to recognize the inequity of this. IMO, HOAs are not going to go away; more and more cities and towns are requiring HOAs in new developments. They like not having to maintain the greenbelt and park areas that they require the builder to put in these communities.

I would speak to a lawyer before the meeting just to be sure. What is the contract for?