Articles

Record keeping is an essential part of running an association. Not only does the law require associations to keep certain types of records for specified periods of time, but records also can prove that the association acted as it was required to in certain situations, like making necessary repairs—which in turn can relieve it from liability for wrongdoing and avoid lawsuits. Records can also help you keep track of things like association spending, complaints and requests by members, and board decisions.

Resorting to litigation if a contractor violates your agreement with it is an unfortunate situation for many reasons. Lawsuits take up valuable time that the association could be using in a positive way to better the community. And a lawsuit might ultimately end up costing even more than the amount that the contractor owed the association anyway. Even if you’ve agreed that a claim must be resolved by arbitration, those costs can skyrocket too.

If your community association has a hard time getting enough board members to attend monthly board meetings to form a quorum, consider meeting by telephone conference call. Meeting by conference call makes it easier for directors to attend, increasing the likelihood that they will. This is especially true for vacation communities, whose board members often live far away from one another and are rarely all present at the community at the same time.

Facts: A homeowner who violated the rules in an association’s governing documents was fined. He sued the association, claiming that it couldn’t lawfully impose fines on its members. He argued that: (1) only a government can impose fines; (2) the restrictive covenants do not authorize the imposition of fines; (3) the bylaws’ provisions concerning fines are not the equivalent of a liquidated damages provision in a contract but rather constitute unenforceable contractual penalties; and (4) the association’s imposition of fines violates public policy.

Facts: Two condominium unit owners sued the association for claims associated with alleged mold contamination in their unit and common area. A trial court ruled in favor of the association. The association also asked the trial court to allow it to collect as an assessment against the owners the litigation fees and costs. The trial court dismissed the claim. The association appealed.

Decision: A Georgia appeals court upheld the trial court’s decision.

Facts: A condominium unit owner was attacked by another resident’s dog in a common area. The owner sued the association and manager. She claimed that the association and the manager of the condominium were negligent because the condominium association failed to enact and/or enforce rules relating to dogs, failed to enforce the regulations that were in place, and failed “to perform regular inspections of all buildings to ensure compliance” with the rules and regulations.

Community association boards occasionally want to make an exception to an association rule or restrictive covenant for a member whose unusual circumstance the board feels warrants an exception. Other times, a board may want to make a community-wide exception. Boards worry, though, that if they make an exception to a rule or restrictive covenant, they might be prevented from enforcing it at some time in the future. That’s because some courts have ruled that associations had forfeited their right to enforce certain rules or restrictive covenants by allowing violations.

Amenities have always played a big part in homeowners’ attraction to planned communities and condominiums. After all, being able to enjoy a pool, workout room, or clubhouse without the hassle of personally maintaining it is worth the cost of association fees to many people. Ideally, members would have to pay only for the amenities they use, but that’s not the case in traditionally run associations.

Unfortunately, sometimes annoying behavior by a member in your community can provoke a violent reaction from another member. Badly behaved pets, loud music, or acting inappropriately in common areas can lead to arguments that escalate. You and your staff should act quickly to avoid liability for violent disputes between members. If members take matters into their own hands because you did nothing and someone is injured, you could be held liable. A court might rule that your failure to intervene in the dispute created a dangerous condition.

Facts: A homeowner became treasurer of an association board. After looking at the association’s finances, he wanted to conduct an independent audit of the association’s books and records. The homeowner sent an email with the request for certain documents to the board’s president and the association’s management company. He claimed that the association refused to give him the documents he needed. The homeowner sued the association and the management company.