HOAleader.com - Tip of the Week - May 3, 2013
Published: Fri, 05/03/13
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HOA Legal Committees: Good Idea That Can Be Abused
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In this week's tip, we answer a reader's question
about the legitimacy of his HOA's legal committee
and whether its secretive deliberations are
necessary.
The short answer? Creating a legal committee can
be a good idea. But it can also be a slippery
slope leading to improper secrecy.
"Usually we'll recommend a legal committee in
two instances," says James R. McCormick Jr.,
a partner at Peters & Freedman LLP in Encinitas,
Calif., who represents associations. "When we
have specific litigation, if we need to contact
and obtain approval from the board or this
other committee fairly quickly, we'll recommend
the board set up committee we can discuss this
case with. The other instance is when one of
the board members is at odds with the
association; we suggest forming a separate
subcommittee without that board member on it
so he won't be privy to whatever we're
discussing."
Lisa A. Magill, a shareholder and association
attorney at Becker & Poliakoff PA in Fort
Lauderdale, Fla., also sees their value when
a board member is involved in litigation
against the association. "Legal committees
are very useful for a variety of reasons,
especially when there's litigation pending,"
she explains. "A legal committee is standard
protocol when one or more directors are adverse
to the association. All board members are
entitled to information about board
communications. By establishing a legal
committee, the board can restrict access to
certain information to committee members.
That way, the association can truly engage
in open communication with regard to strategy
decisions, the merit or weaknesses of its case,
and the like without fear of an adverse
director benefitting from that information."
However, Magill recommends guidelines. And the
secrecy of a legal committee creates tensions
with public records requirements. To find out more,
check outour new article,
http://www.hoaleader.com/members/843.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Was This a Secret HOA Meeting? You Be the Judge
In this week's tip, we discuss the fallout from what may have been a secret
board meeting. Here's what happened: An HOAleader.com reader says a
handful of board members met to discuss how they'd handle a sensitive issue
at the next meeting--but they didn't tell anybody else they were meeting.
When the others found out, they balked. It's not completely clear to all of
our experts whether this board absolutely, positively did anything wrong.
But it may have.
Click here to read full article:
http://www.hoaleader.com/public/Was-This-a-Secret-HOA-Meeting-You-Be-the-Judge.cfm
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Are Illinois Courts a Danger to Its State's HOAs and Others?
In this week's tip, we head backto Illinois to discuss yet another
questionable Illinois court ruling that could have implications for HOAs
far and wide. (See last month's article on another questionable Illinois
court ruling.)
Click here to read full article:
http://www.hoaleader.com/public/Are-Illinois-Courts-a-Danger-to-Its-States-HOAs-and-Others.cfm
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Illinois Court Rules Owner Can Shirk HOA Assessments
Last month, we discussed the wisdom of an Illinois Supreme Court case,Poris
v. Lake Holiday Property Owners Association, allowing HOA security
officials to stop and write tickets to speeding home owners. (See last
month's article.) In what we hope doesn't become a regular series, we'll now
discuss another controversial Illinois court case.
Click here to read full article:
http://www.hoaleader.com/members/Illinois-Court-Rules-Owner-Can-Shirk-HOA-Assessments.cfm
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HOA Yard Sales: Community Builders or Killers?
In this week's tip, we tackle the tough question of whether yard
sales are good or bad for HOAs.
Click here to read full article:
http://www.hoaleader.com/public/HOA-Yard-Sales-Community-Builders-or-Killers.cfm
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Pros and Cons of Banning Yard Sales in Your Homeowners Association
An HOAleader.com reader asks, "Are yard sales a good idea for a HOA? The board
is concerned with the extra traffic it involves, plus the possibility of
criminals casing our properties." Here our experts discuss whether their
clients have rules governing yard sales--and whether they should. You
might be surprised at their disagreement.
Click here to read full article:
http://www.hoaleader.com/members/Pros-and-Cons-Banning-Yard-Sales-Homeowners-Association.cfm
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