Saturday, December 20, 2014

How liable are condo board members for bad decisions

Board members must "work in good faith, stay reasonably informed and only take actions in furtherance of the legitimate interests of the condominium association they represent. . . . Under the business judgment rule, officers would still be liable for instances of fraud or negligence and actions can be overturned where they fail to adhere to the association’s instruments and procedures."

Friday, December 12, 2014

Formal complaint regarding distribution of information by members

A formal complaint was filed today regarding the failure of Cardinal Management to provide access to the Association's Facebook page pursuant to § 55-79.75:1.

In a previous complaint, the Southampton board asserted, and the CIC Ombudsman accepted (CIC Ombudsman File Number 2015-00038), "that there is a Facebook page available and that owners can communicate using that site" as required:

§ 55-79.75:1. Distribution of information by members requires (1) “a reasonable, effective, and free method, appropriate to the size and nature of the condominium, for unit owners to communicate among themselves” and (2) “the executive organ shall not require prior approval of the dissemination or content of any material regarding any matter concerning the unit owners’ association.”

An October 10, 2014, request to the Management Agent to “provide instructions for signing on to the Association's Facebook page” went unanswered.

On October 12, 2014, Board Chairman Michael Pickford stated, “Information regarding the Facebook page will be included in the next Southampton Herald.” No reason was provided as to why it is necessary to wait, and no date was given for the next issue of the Southampton Herald.

The Southampton Herald is issued by the Newsletter Committee which has been operating unlawfully for many years — it does not provide notice of meetings as required:

§ 55-79.75Notice of the time, date and place of each meeting of the executive organ or of any subcommittee or other committee thereof, and of each meeting of a subcommittee or other committee of the unit owners' association, shall be published where it is reasonably calculated to be available to a majority of the unit owners.

Another request, October 24, 2014, to the Management Agent to provide information necessary to view and post to the Association's Facebook page also went unanswered.

The Board, arguably the most significant violator, seeks authority to fine homeowners

The Bylaws amendment procedure adopted by the Board to enable them to fine homeowners breaches Association Bylaws, and is being aided by Counsel that has enabled similar breaches in the past.

Arguably, the Board remains the most significant and continuing violator of the Association Bylaws and the Virginia Condominium Act (scan this blog for specifics), yet they seek authority to fine homeowners before correcting their own egregious behavior.

Substantial legal fees charged to the Association could be avoided if the Board abided by the Bylaws and the Virginia Condominium Act.

Is the Board using 'informal gatherings of the executive organ to circumvent the open meeting requirements' of Virginia law?

Should one consider emails from shchoa@gmail.com a formal communication from the Association?

If these emails are a formal communication from the Association, where may one examine the file containing emails from and to shchoa@gmail.com pursuant to Virginia Condominium Act § 55-79.74:1?

Decisions contained in these emails appear to violate the Virginia Condominium Act § 55-79.75.B: "The executive organ shall not use work sessions or other informal gatherings of the executive organ to circumvent the open meeting requirements of this section."

Response to formal complaints overdue

A response to two Formal Complaints filed on March 27, 2014 and October 11, 2014 pursuant to Resolution No. 2012-1, Internal Complaint Policy is overdue.