Could the Board of Directors Be Liable?

On December 28, 2024 a judicial proceeding against Gus Philpott (me) was started in the name of The Summit Community, Inc. This is your HOA.

That legal action was specifically prohibited in the CC&Rs (Art. XIII, §10 Litigation), because the Board had never sought or obtained the approval of 75% of the Voting Members.

Further, the Board never voted to approve it. And the Board never authorized the Board President, Danny Trapp, to have it filed by the HOA's attorney at Turner Padget. There is no record in the Minutes of Board Meetings of any approval by the Board.

The full board has been aware of the case for some time, and it has never discussed the existence of the case during a monthly Board meeting or voted to stop it.

Because the Board has failed to stop an unauthorized, prohibited legal action, could the HOA and the Board members be liable for their failure?

The law firm of Turner Padget was retained on May 7, 2024 as the attorney for the Association; its legal fees are paid by the HOA. Turner Padget represents the Association. 

If its lawyers read and understood Art. XIII, §10 in the CC&Rs, what advice would it give to the Association?

Would it say, "We made a mistake in December 2024, and the Association needs to get out of that legal action without delay"?

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