Could the HOA be liable?


If this chase had started in The Summit and involved a RCSD deputy who was working for the HOA for $48/hour under the Special Duty Agreement that was effective on February 1, 2023, could the HOA end up footing the bill?

Let's say that the family(ies) of two dead people in a wreck got a lawyer who saw the "deep pocket" of the HOA and decided to go after the $2,000,000 in cash and more.

They might allege that all three in the stolen car were afraid of the deputy(ies), and so the driver fled. 

The Liability clause in the SDA reads "The Requestor (the HOA) will hold harmless the Richland County Sheriff's Department from all and all claims or liabilities resulting from service ..."

Let's say the families sue RCSD and the HOA and win a huge settlement. You know how juries are. They are often quite liberal with OPM (Other Peoples' Money). RCSD stands back, bows to the HOA, and says, "We're outa here. Good luck."

Next the insurance carrier for the HOA says, "Hey, we didn't get a chance to evaluate that SDA. If we had seen it, we would have raised your premium for the additional liability under the SDA. We deny any coverage. You're on your own."

The judge tells the HOA to "pay up." Defense expenses probably cleaned out the $2,000,000 in cash, and then the judge tells the HOA to assess the homeowners for the balance of the settlement. 

If the settlement was $10,000,000, then the HOA divides $10,000,000 by 2,480 and bills each homeowner for $4,032 and a quarter.

If that $2,000,000 in cash vanished, do you think the HOA dues would go up?

Now, how do you feel about the good job that the board is doing?

Wouldn't now be a good time for the Board to get a written legal opinion from its attorney and to submit the SDA to its insurance carrier for review? Why wouldn't the Board do it, with a potential liability like that hanging over their heads?

Maybe if the HOA had a legitimate Board, they would do so.

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