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Last month, the Insider showed you the importance of using a workplace involvement program to engage employees in both their work and the association. However, regardless of the steps that you take to create a pleasant work environment and motivate your employees, eventually, you’ll have to deal with an employee who doesn’t perform well and must be let go.

In our last issue, the Insider stressed the importance of following a year-round maintenance plan and suggested that you put roofing at the top of your list of tasks to prioritize. If your association is responsible for the maintenance of roofs in the community, it’s particularly important to have them inspected before winter. After all, most roof damage occurs during winter. Harsh weather conditions—such as heavy rain and snow, strong winds, and extreme temperatures—can cause substantial damage to a building’s roof.

If your community allows only certain kinds of pets, write a bylaw that states which types of animals are welcome, and say that “all other types”  of animals are forbidden. If you try to specify the animals that aren’t allowed, you’re bound to leave something out. Worse, if you allow pets and think that means you don’t have to write a pet bylaw at all, you could be in a for a big surprise. Let’s say you have no pet policy and state law doesn’t prohibit people from owning exotic cats, like cougars.

Don’t overlook the requirements of your declaration and bylaws when you set your annual budget. If you do, you might not be able to enforce the assessments you charge your members. Example: Your association sues a member to collect unpaid assessments. The member says that the declaration requires the board to adopt the association’s budget and to give each member 14 days’ advance notice of the meeting at which the budget is going to be discussed.

It can be difficult for the person who actually receives members’ checks to know which are from delinquent members and must, therefore, be inspected more closely. This is even more problematic for associations whose members send their payments directly to a lockbox. One way to resolve this is to flag the account. This means that the association makes a notation on delinquent members’ accounts that only checks for the full amount due should be cashed and that all other checks should be turned over to you.

Facts: A unit owner sued the association, claiming that it had abused its power by amending and enforcing the rules and regulations concerning the leasing of units, parking, and pet ownership, and authorizing the assessment of late fees for unpaid common area charges. The owner claimed that, as a result, he shouldn’t have to pay late fees for his unpaid common area charges.

Facts: A homeowner in a planned unit development (PUD) refused to pay the required assessments to the PUD. The owner sued the PUD seeking relief from the imposition of dues, fines, and liens filed by the PUD against her property and seeking damages for slander. The PUD sued the owner for unpaid assessments. A district court found that the PUD had the authority to impose assessments against the owner’s property and determined the exact amount owed. The owner appealed.

Decision: The appeals court upheld the lower court’s decision.

Facts: The owner of a home in a gated community was injured during a home invasion. The owner sued the association, which managed, maintained, and controlled the community. She alleged, among other things, that the association’s negligence in failing to maintain adequate security at the two entrance gates of the community was the proximate—that is, direct—cause of her injuries. The association asked a trial court for a judgment in its favor without a trial. The trial court granted the request, and the owner appealed.

Members of a gated community sued the homeowners association for negligence after they were attacked in the home of one member by a known assailant. The members claimed that the homeowners association, which managed, maintained, and controlled the premises, failed to maintain an adequate level of security at the two entrance gates of the community. The court granted the association's request to dismiss the case without a trial.

Your association's board is often called upon to make judgments about various important community issues.  A member might sue the association over a decision he or she thinks is in the interest of individuals on the board and not in the best interest of the association. A member might sue an association based on the concept of fiduciary duty. A fiduciary duty is a legal obligation imposed on all board members. It refers to their duty of loyalty to the association. Board members have a fiduciary duty to the association.