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Tag Archives: means

Governance/Board Duties

From time to time you may hear that the board of the association operates in a fiduciary capacity for the homeowners. Or you may read about the board’s fiduciary responsibility in the governing documents. Just exactly what does this mean?

Fiduciary duty simply means the board has an ethical and legal obligation to make decisions in the best interests of the entire association. That’s a small explanation for a very big responsibility.

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What is Standing to Sue?

In order to
successfully bring a lawsuit, the plaintiff must have standing to sue. 
Standing means the plaintiff is the right person to bring a particular
claim before the court for adjudication.  There are three requirements
for standing: injury, causation, and redress.

First, the
Plaintiff must have directly and personally sustained an injury, or
there is immediate danger that the Plaintiff will sustain a direct
injury.  It is improper to sue for an injury that is of a general nature
common to all members of the public.  Likewise, it is generally
improper to sue for the rights of a third party.  However,
parties with standing to sue will often assign their rights to another party to
sue on their behalf.  This is frequently seen in construction defect
cases where individual homeowners assign the homeowners’ association
or regime the right to sue on behalf of all members collectively. 

Second,
causation requires that the injury be fairly traceable to the
Defendant’s conduct.  This element ensures that the Plaintiff is suing
the correct Defendant.   

Finally, redress means that a
favorable court decision will likely rectify the Plaintiff’s injury.  If
the court determines that a party lacks standing to bring a claim, the
court will typically grant summary judgment in favor of the opposing
party.

This site and any information contained herein is for
informational purposes only and should not be construed as legal
advice.  Seek a competent attorney for advice on any legal matter.

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Foreclosure: HOAs Blow Up Mortgages

News items of national interest regarding Condominium and Homeowner associations, compiled by the Community Associations Network

Homeowner associations struggle daily with how to pay the bills as more and more HOA fees go unpaid on housing units in or near foreclosure. That means HOA members are left holding the bag for unpaid mortgages in their communities — and end up paying higher fees or getting fewer services.
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