Could Butler Sink the HOA?

In December Summit Hills V homeowner and former board member Vernell Butler filed a Complaint in Richland County Magistrate's Court against four homeowners in the HOA. The four homeowners are Brenda Bryant, Thomas (Jeff) Lummel, Linda Potter, and Angelo Turley-Moore.

Could Vernell's filing of the Complaint end up causing The Summit's HOA to freeze or shut down?

In his Complaint he asks the Court for the "immediate dissolution" of the HOA's Board of Directors. Will that get any traction with the Court?

The four Defendants have until about March 16th to file their Answers to the Complaint. 

But what would happen if each of the four Defendants decided, "I'm not putting up with this nonsense. This job doesn't pay enough. (The "job" doesn't pay at all.) I quit!"

If four directors quit, the Board would be unable to function, because there would not be a quorum of directors (four). The three remaining directors (Holmes, Hill, and Weatherbee) would be unable to convene board meetings. None is an officer, and they would be unable to direct the management company. They would not be able to elect officers.

Because they could not convene a board meeting, there would be no Board, as required under State law. The three would be unable to appoint successors to the four who quit. They would be unable to get a quorum for a meeting.

The Voting Members would be powerless, because they do not have the authority to appoint (or elect) successors to the four who quit. The business of the HOA would grind to a halt. Without a Treasurer, funds could not be used for payroll or to pay vendors for services. 

Grass would be uncut. Utilities would not be paid. Parkway lights would go dark for two miles. Ponds and lakes would go without maintenance. The HOA office would close. Pools will not open. Delinquent dues would not be collected. Checks will not be cashed. Summit Scoops would not be published. Monthly financial statements would not be generated or posted.

The S.C. Attorney General or the S.C. Secretary of State might step in and take over the HOA. Could the HOA be placed in Receivership? Remember President Ronald Reagan's words: "The nine most terrifying words in the English language are: 'I'm from the Government, and I'm here to help.'"

How would your property values be affected by such a shutdown?

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