How Do Voting Members Prevent Lawsuits by the HOA?

In a recent post on this blog, I wrote that Voting members can "prevent the HOA from starting lawsuits". How do they do that?

It's simple. They just don't approve starting them.

The Voting Members don't have to do anything to prevent the HOA (the Board of Directors) from starting a lawsuit that is not authorized in the CC&Rs.

In order for the HOA (through the Board) to start a lawsuit that is not authorized, the Voting Members must do something!

The CC&Rs prohibit the HOA from starting lawsuits without the approval of Voting Members in all but four circumstances. This is covered in Art. XIII, §10 Litigation (Page 27) of the CC&Rs. If you don't know where to find the CC&Rs online, drop me an email (use the Contact box to the left) or call the HOA office (803.865.0609).

To start a lawsuit, 

  • the Voting Member must get permission of 75% of his homeowners; then
  • 75% of the Voting Members must approve the lawsuit (after getting their homeowners' approval; then
  • the Board of Directors must approve the lawsuit; then
  • the Board of Director must authorize one of the officers to tell the attorney(s) to proceed with the lawsuit.

How did The Summit's HOA do on that checklist?

  • Homeowners were not asked to vote to approve the lawsuit;
  • Voting Members were not asked to approve the lawsuit; 
  • The Board of Directors never approved the lawsuit. No record exists in the Minutes;
  • The Board of Directors never authorized any officer to give the lawyer(s) the green light. No record exists in the Minutes.

So, how did it happen that the HOA's attorney at Turner Padget sent Gus Philpott (me) a Cease and Desist Letter dated August 28, 2024, threatening me with legal action?

How did the attorney explain to Danny that the CC&Rs prohibit this type of lawsuit?

How did it happen that Danny Trapp, President of the Board of Directors, gave an Affidavit to Turner Padget for them to include when they filed a lawsuit against me on December 28, 2024?

One of the reasons that the CC&Rs put this control in the hands of the homeowners (Members of the Association) and the Voting Members is that such a lawsuit will cost the HOA money! Possibly, a lot of money.

What should happen to the Board or to certain Board members, when they ignore the CC&Rs and start an expensive lawsuit anyway?

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