You've often heard, "The sooner, the better"

When you are faced with correcting a bad decision, isn't "The sooner, the better"?

On December 30, 2024, the HOA made a bad decision. It sued Gus Philpott, a resident (not a homeowner) in The Summit's HOA. The lawsuit was filed by "The Summit Community Association, Inc." To you, that's the HOA.

The first problem? The board of directors of the HOA never approved the lawsuit. No record exists in the Minutes of Regular Board Meetings.

The second problem? The board never authorized the Board President, Danny Trapp, to tell the lawyers to file it. No record exists in the Minutes of Regular Board Meetings. But Trapp did it, anyway.

The third problem? The HOA has been making illegal disbursements of HOA funds, in payment of invoices from Turner Padget, the HOA's law firm.

Is it a financial crime for a South Carolina non-profit corporation to pay out funds for a service it never approved?

The board couldn't approve the lawsuit, because it is prohibited by the CC&Rs (Art. XIII, §10 Litigation). The Voting Members never approved it. And their homeowners never approved it.

What should happen now?

The Board of Directors, by vote in a Regular or Special-Called Board Meeting, should direct its attorney to dismiss the lawsuit immediately. 

Why didn't the attorney inform the Board in December that, under the CC&Rs, it could not sue Gus Philpott (me) without the approval of 75% of the Voting Members? Or did he? 

It's too late for the Board to do anything except vote to dismiss the lawsuit. The sooner they do that, the better. 

Should they talk to me about a settlement, before they move to dismiss the case? The sooner, the better.

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