Post by Shauna on Feb 15, 2014 19:52:12 GMT -5
This (Lou Thompson's) letter was an excellent, proficiently crafted response. This message should be distributed to all residents, as it clearly outlines the conflicts of interest by which the board is operating in enforcing their selective interpretation of the bylaws.
I would absolutely respond with a petition for special meeting, or even during the resident forum of the board meeting, but vehemently demanding to review the bid process by which the board operated in identifying the legal fees and lawyer they are contracting. Further, I would demand an explanation, provided by the LAWYER, and not a board member, as to the determination of potential damages by which the lawsuit aims to recoup, and especially the "future potential to collect monies from non-members". This almost sounds to be a commercial activity performed by the GHPOA... which is in direct violation of the tenets of the lawsuit it is proposing to carry out.
Finally, I would remind the board of the fiduciary duty it owes the association, and the liability of the board and its members. Board members and other volunteers can be held PERSONALLY LIABLE for decisions and actions made on behalf of their associations.
If Members of the board wish to sue Mr. Yuen as the claimants for the damages, that would be more appropriate. However, the board does not have the legal grounds to carry suit through the GHPOA entity.
I hope they have an active Director's and Officer's Liability Insurance policy.
Our policy at my association is:
Director’s And Officer’s (D&O) Liability Coverage
Director’s and Officer’s Liability Insurance (D&O) is necessary when the consequence of the board’s alleged negligence results in mismanagement of common funds or policies. Typical claims include wrongful termination, sexual harassment, discrimination, and mismanagement of common funds.
I've attached a document that provides an overview of the actions by with the board members can be held personally liable.
BUT FOR FUN:
Some of the complaints brought
against directors and officers of
community associations include
the following:
• acts in bad faith,
• breach of loyalty,
• conflict of interest,
• defamation of character,
• failure to collect assessments,
• failure to maintain property and
common areas,
• failure to obtain competitive bids,
• failure to properly fund reserves,
• improper payments,
• libel,
• misleading representation,
• mismanagement of funds,
• poor judgment in the conduct
of association affairs,
• slander,
• waste of association’s assets,
• wrongful termination/
discrimination, and
• wrongfully filed lien.
And also:
"The average defense costs
for D&O claims are in
excess of $100,000."
Billy Johnstone
william.h.johnstone@gmail.com
(240) 285-3825
5632 Ashburn Terrace
Frederick, MD 21703
I would absolutely respond with a petition for special meeting, or even during the resident forum of the board meeting, but vehemently demanding to review the bid process by which the board operated in identifying the legal fees and lawyer they are contracting. Further, I would demand an explanation, provided by the LAWYER, and not a board member, as to the determination of potential damages by which the lawsuit aims to recoup, and especially the "future potential to collect monies from non-members". This almost sounds to be a commercial activity performed by the GHPOA... which is in direct violation of the tenets of the lawsuit it is proposing to carry out.
Finally, I would remind the board of the fiduciary duty it owes the association, and the liability of the board and its members. Board members and other volunteers can be held PERSONALLY LIABLE for decisions and actions made on behalf of their associations.
If Members of the board wish to sue Mr. Yuen as the claimants for the damages, that would be more appropriate. However, the board does not have the legal grounds to carry suit through the GHPOA entity.
I hope they have an active Director's and Officer's Liability Insurance policy.
Our policy at my association is:
Director’s And Officer’s (D&O) Liability Coverage
Director’s and Officer’s Liability Insurance (D&O) is necessary when the consequence of the board’s alleged negligence results in mismanagement of common funds or policies. Typical claims include wrongful termination, sexual harassment, discrimination, and mismanagement of common funds.
I've attached a document that provides an overview of the actions by with the board members can be held personally liable.
BUT FOR FUN:
Some of the complaints brought
against directors and officers of
community associations include
the following:
• acts in bad faith,
• breach of loyalty,
• conflict of interest,
• defamation of character,
• failure to collect assessments,
• failure to maintain property and
common areas,
• failure to obtain competitive bids,
• failure to properly fund reserves,
• improper payments,
• libel,
• misleading representation,
• mismanagement of funds,
• poor judgment in the conduct
of association affairs,
• slander,
• waste of association’s assets,
• wrongful termination/
discrimination, and
• wrongfully filed lien.
And also:
"The average defense costs
for D&O claims are in
excess of $100,000."
Billy Johnstone
william.h.johnstone@gmail.com
(240) 285-3825
5632 Ashburn Terrace
Frederick, MD 21703
