HOA Lawsuits: a reality check
Independent American Communities
By Deborah Goonan
Thinking of suing your HOA? Has your HOA filed a lawsuit against you?
Read this page for important information, and personal accounts from
homeowners and residents who have lived through the ordeal.
I’m not an attorney. However, over the past five years, I have been
reading legal complaints, case summaries, and generally following the
progress of legal disputes in Association-Governed Housing. I read and
analyze pages and pages of dry, verbose information, including legal
opinions, to gain a better understanding of exactly how current laws
work for or against housing consumers.
In other words, I look for patterns of dysfunction and injustice
through the lens of consumer protection.
Here’s what consumers need to know
Homeowners, condominium, cooperative, and property owners associations
are collective legal entities – usually incorporated. Governing
documents of HOAs – which include Declarations of Covenants,
Conditions, and Restrictions (CC&Rs), By Laws, and Articles of
Incorporation – are legally binding on both individual members and
their Association, with U.S. courts generally viewing the relationship
as contractual between and among the parties.
But that contract is usually written by and for developers, making it
one-sided in favor of the HOA. In addition, governing documents are not
subject to state or federal review, and state laws impose very few
restrictions on the terms of HOA contracts. A buyer or heir to HOA
property must agree to all terms without any opportunity for
negotiation before taking title to that property. Take it or leave it.
And, it’s important to note that state laws governing HOAs are usually
written by, and therefore heavily skewed in favor of, real estate
industry stakeholders: land developers and home builders, bulk
investors, HOA management firms, HOA attorneys, and so on.
The HOA industry is, at best, loosely regulated by a patchwork of
inconsistent state laws, and a handful of regulatory agencies. Most
often, state Ombuds and regulatory departments of business or real
estate – if they exist – are established with virtually no budget to
investigate consumer complaints, and no mandate or authority to enforce
statutes or HOA governing documents.
I call it Regulatory Window Dressing. Elected officials give the
appearance of doing something to rein in excessive power and abuse of
HOAs, without really doing anything at all.
That’s why, in most cases, an Association member’s sole option to
enforce or defend their rights against their Association is engaging in
a legal battle in civil court.
I regularly hear from owners and residents of Association-Governed
Housing. I listen to their frustrations and their personal stories, as
do hundreds of other housing consumer rights advocates across the U.S.
This page summarizes the struggles faced by owners and residents of
HOAs, and includes a series of personal statements from individuals
whose American Dream has turned into the American Nightmare.
What to expect from the HOA litigation process
The legal dispute takes over your life. Litigation involves a great
deal of your time and effort, and the information gathering process can
seem invasive. You will be expected to provide documentation of your
complaint or facts in your defense. Your attorney or the HOA attorney
will demand that you to turn over copies of any and all written
correspondence you have had with the board, manager, or collections
agency, including emails. The list of correspondence includes letters,
invoices, receipts for payment, violation notices. Relevant
photographs, social media posts, voice mails, and recorded phone
conversations are also subject to examination by both Plaintiff and
Defense attorneys. One or more rooms in your home may be filled with
stacks of important papers and files related to your lawsuit.
You may become the enemy. Most individuals report feeling shunned by
their neighbors, and being labeled as “disgruntled,” “unreasonable,”
“malcontents” or “troublemakers.” Your HOA board may openly blame you
for creating the problem and saddling the Association with unnecessary
You find out who your real friends are. In the early stages of a
dispute, you’re likely to have several friends and allies. But once the
lawsuit is filed, many will shy away from you. Some will support you
privately, but will not defend you publicly. Those who are willing to
support you and stand by you through this ordeal count as true friends.
The dispute strains personal relationships. Isolation and social
rejection spreads to your family members. This puts a strain on couples
and families. Friends may also avoid your partner. Play dates with your
children may stop, or a child might be bullied at school. Family stress
and feelings of rejection can lead to behavior and social problems for
children. Some people report that a prolonged lawsuit has led to the
end of their marriage, because one partner wants to give and settle,
while the other partner wants to hang tough and fight for justice.
You get the Silent Treatment. Once litigation begins, your HOA Board
and Manager will become less transparent. All communication with your
HOA must be directed through the attorneys. Open meetings become less
Your requests might be ignored or rejected. Quite often, your HOA will
not cooperate with your requests for access to documents. This is one
of the most common complaints I hear. In addition, your requests for
maintenance, as well as approval for home modifications that require
permission from the HOA, may be delayed, ignored, or rejected. Some
owners have received “cease and desist” letters from the HOA attorney,
accusing them of “harassment,” and threatening legal action.
Retaliation is common. If you have a bully on your board or in charge
of management, aggressive and abusive behaviors often escalate. Some
HOAs will go out of their way to humiliate the homeowner by any means
possible, including publicly spreading rumors, lies, and false
accusations. Particularly bitter disputes may even devolve into
physical assault. Police complaints may be filed, even if there is no
basis, as an intimidation tactic. Sometimes arrests are made, and the
charges later dropped. But by that time, reputations are already
Lawsuits often drag on for years. The Civil Litigation process is
anything by Civil. It is fraught with endless motions,
counter-suits, depositions, and a long and invasive discovery process.
Expect the process to take at least 2 – 4 years. A complex case
involving multiple parties or counter-suits and appeals can drag on for
5 – 10 years.
You don’t know who you can trust. I often hear from HOA residents that
they are fearful of talking to anyone who might report back to their
HOA board or manager. While many of these fears may be unfounded, HOA
disputes can divide communities. When your formerly friendly neighbors
snub or ignore you, it can destroy your sense of trust in others as
well. And when you don’t trust people, you tend to self-isolate,
compounding feelings of rejection and loneliness.
You might go broke. The legal process can be very costly. Attorneys can
quickly burn through a $10,000 – $20,000 retainer. And, because finding
a resolution can take years, your legal costs can exceed $30,000. As
you’ll see in some of the personal stories below, legal costs can well
exceed $100,000, particularly if your HOA prevails and is awarded their
attorney fees by a judge.
By the way, don’t expect an attorney to take your case on contingency.
Prolonged stress can harm your health. I have heard reports of
depression, anxiety, and sleep disorders. Some owners become so
emotionally distraught, they consider or attempt suicide. Sadly, a few
have taken their own lives. Others find that stress exacerbates
pre-existing health problems. Some have reportedly developed new
illness, such as an autoimmune disorder or cardiac distress. People
with disabilities have told me the stress makes it more difficult to
cope, especially when the HOA is refusing to accommodate their
disability in violation of Fair Housing Laws.
There’s no easy escape. During the heat of the legal battle, though you
might choose to move elsewhere, selling your home can be difficult or
next to impossible. That’s especially true if your HOA has filed one or
more liens as a result of unpaid assessments. (In many states, unpaid
fines turn into unpaid assessments.) If your dispute involves defective
construction, environmental contamination, or significant damages that
your HOA refuses to repair, your home is probably not marketable.
In the end, you may be forced to move. Owners and residents are almost
always pressured by the HOA and their adversarial neighbors to move.
Many ultimately do, even if they “win” their lawsuit, simply to escape
community tension and start over in a new neighborhood. It’s fairly
common for a legal settlement to require you to sell your property and
vacate the HOA.
Out-of-court confidential settlements are common. Most lawsuits never
make it to trial, and instead end outside of court with a settlement. A
condition of most settlements is that both parties agree to keep the
details confidential. Although you may not be comfortable with a
“gag-order,” agreeing to keep quiet about the outcome of litigation may
be the best way to put an end to prolonged litigation.
Bottom line—It’s not a fair fight. It’s not that individual
Association members never prevail in litigation. But the odds are
stacked against them.
It’s relatively easy for the HOA to meet its burden of proof when suing
a member. The HOA can often prove its case against you by referring to
what is written into the governing documents. The HOA also gains
considerable authority under state law. State laws enable most
Associations to take various punitive actions against a property owner,
to include issuing fines, placing a lien on your home, and even
foreclosing your home to collect on that lien.
On the other hand, it’s relatively challenging for an individual owner
or resident to prove a case against the HOA. For one thing, an
Association is almost always represented by an aggressive, well-trained
HOA attorney – paid by an insurance company – who is very familiar with
the law, and knows how to defend claims against the Association or
Very few attorneys will represent a member against the Association, and
those that are willing to take a case are not necessarily on equal
footing with the HOA’s attorney. If you decide to sue your Association,
you (or your attorney) must either prove that the board’s or manager’s
actions were unreasonable or done in bad faith. Neither standard is
clearly spelled out in the law or governing documents.
And, finally, state law does not specifically obligate an
Association-Governed Community to uphold its maintenance
responsibilities, as spelled out in the governing documents. For
example, there is no law that mandates an Association to maintain the
common elements and common areas to a minimum standard for health,
safety, or habitability. Nor does state law require HOAs to maintain
common areas to the same aesthetic standards that are required of
individual property owners.
One exception: homeowners and residents quite often prevail on Fair
Housing complaints, because federal law is quite clear and unambiguous
on matters of disability accommodation and discrimination against
protected classes. However, there’s such a backlog of fair housing
claims that it can take several years to resolve, and, during that time
the resident often moves in order to improve living conditions.
Sometimes, even when you win, you lose. After several years and
appeals, you might prevail on your case, or at least end up with a
fairly good settlement offer. But by the time you deduct legal expenses
for the attorneys, you may find you’re not that far ahead of the game.
In fact, the net amount of your award or settlement may not even cover
your total damages, especially if your property has been devalued, sold
at a loss, or lost to foreclosure.
And you may think that a judge will order the HOA to pay your legal
costs. But don’t count on it. First of all, not all state laws have a
“loser pays” provision. And even if your state law does stipulate that
the prevailing party is entitled to reimbursement of attorney fees, a
judge may find that you only partially prevail, or that both parties
prevail on different issues. If that’s the case, both parties will
still be covering a good portion of their own legal expenses.
So…what to do?
There’s no doubt about it. Engaging in litigation with your
Association-Governed Community is not something you should take lightly.
Don’t just take my word for it. Read through the following personal
accounts of homeowners and residents who have lived through the ordeal.
Then make your own decision about how to best handle your HOA dispute.
I encourage you to share this page:
• with other property owners and residents in Association-Governed
• your family and friends
• anyone who may be contemplating purchase of a home in a HOA, condo or
cooperative association, and
• your state (provincial) and federal elected legislators.
Have a personal story you’d like to share? Contact me through the email
feedback form on this page.
HOA Lawsuits: personal stories
When Michelle Germano broke the story in her Virginia community
regarding toxic Chinese Drywall, many of her neighbors shunned her.
To make matters worse ‘in their eyes’ I was appointed the lead
plaintiff in the class action suit. My situation was so muddy because
of the Developer telling people not to pay attention to me about
Chinese Drywall, because I was ‘crazy.’ He tried to discredit me, but
then the story broke in the newspaper and TV. The majority of the
neighbors turned on me. I had a couple close friends that stayed in
touch, supported me, and fought for me. I was blamed for ‘devaluing’
the property.”According to Germano, it was a lengthy 7.5 year battle to
resolve her legal dispute with her HOA. Since she moved out of her home
in 2009, she says,”It cost me thousands of dollars; a bankruptcy,
emotional and financial distress. My matter was resolved when I acted
as my own lawyer and pleaded my case to the Judge in court in 2015. He
ordered a mediation. I had four attorneys: Class Action suit; bankruptcy
attorney; foreclosure attorney; mediation attorney.”
In her statement to the court, Germano explained how purchasing and
living in a home with toxic gases of Chinese Drywall caused physical
illness and destruction of electrical and plumbing components. Under
the circumstances, she was unable to live in, rent, or sell her home.
The mortgage lender and other creditors had granted Germano
forbearance, but her HOA continue to insist upon full payment of
assessments, plus collection costs and attorney fees.
The exorbitant cost to gut her home and replace more than 150 sheets of
toxic drywall, which would involve repairing or replacing corroded
wiring, plumbing, and appliances, was out of the question. Even real
estate investors were not interested in flipping the home, because they
were unable to make any money on upon resale.
Ultimately, Germano’s lender insisted that the HOA allow the bank to
proceed with a Deed in Lieu of foreclosure. That finally ended the
continuous harassment by the HOA for unpaid assessments.
Asked if she was satisfied with the ultimate resolution, Germano said,
“I am very satisfied with the outcome, I am just sorry it took 7.5
years. The Bankruptcy has been dismissed; Deed-in-Lieu; all judgments
dismissed. Senator Mark Warner is working with me to restore my credit.
They [the HOA] tried to get me to sign a gag order and I refused.”
“I was extremely ill from the Chinese Drywall. I was sick one year in the
house and 3.5 years out of the house. I lost my personal belongings;
furnishing; savings; equity in house. Having Chinese Drywall, getting
sick; losing everything was nothing compared to the HOA heartache. I
would have recovered years ago from the losses, but their aggressive
behavior kept the pain fresh in my mind everyday…all day.”
After the bank took possession of her home, it was sold at auction.
Germano is rebuilding her life, renting a home that is not located in
Neil Brooks, a medically disabled man from Colorado, sued both his
neighbor and his HOA after one full year of unsuccessful attempts to
resolve a disputed nuisance caused by his neighbor’s barking dogs.
Immediately after Brooks filed his lawsuit, he and his wife were
removed from their HOA community online discussion forum. Legal
discovery would later reveal that some of Brooks’ neighbors, including
several HOA board members, agreed to exclude the two homeowners from
the internet forum so that they could inform all homeowners of the
pending litigation, tell “their side” of the story, and rally support
for the neighbor being sued. The discussion soon turned into an online
posse of homeowners intent on “voting [Brooks] off the island.”
Yet none of the residents in the small association – less than 40 homes
– ever agreed to speak to Brooks directly, despite his offer to meet
with both his neighbor and the HOA board face to face.
A year later, Brooks’ neighbors sold their house and moved, taking
their dogs with them. They settled out of court with Brooks. But a
judge threw out the separate case against the HOA, and ordered Brooks
to pay $68,000 in legal fees. That only escalated tension in the
Neighbors continued to either shun or verbally harass Brooks. A series
of harassment reports were filed with the local police department by
Brooks against his neighbors and by neighbors against Brooks.
Ultimately Brooks was arrested for alleged “felony menacing” of his
neighbors with a handgun he purchased for self-defense.
Those charges were later dismissed, on the condition that Brooks submit
to a psychological evaluation (which confirmed he posed no threat to
himself or others) and move out of the HOA community in order to avoid
further conflict. Neil and his wife were forced to sell their home. The
stress of these events led the couple to separate.
The entire ordeal left Brooks financially devastated at a time when his
health was declining. Brooks continues to struggle with his medical
Nila Ridings, of Overland Park, Kansas, has been involved in litigation
with her HOA for several years. The ongoing disputes concern
maintenance that is supposed to be provided by the HOA, as well as a
reluctance of the HOA to provide access to financial records. By not
performing the maintenance the prolonged stress has caused
life-changing health issues to her and damage to the interior of her
home. The HOA refused access to financial records and it was discovered
ten million dollars was/is unaccounted for which resulted in a lawsuit
where the board president told the judge the HOA had no records!
Ridings describes her nightmare.
“Litigation for a homeowner against their HOA would easily be compared
to stepping into a lion’s cage. The HOA board and their attorney
are determined to rip you to shreds while trying to impress your
neighbors with their prowess. After all, they have the power, the
money, and all of the assets of your neighbors, most likely a
multi-billion dollar insurance company, and an attorney that must prove
to them that he/she can convince a judge and jury that the HOA has a
right to take your home and leave you penniless and homeless.
They are out to prove to all of your neighbors that you are a worthless
piece of garbage that deserves to have your life ripped away from you
and your health destroyed, because you stand up to the board when they
are acting in bad faith, fail to abide by the CC&Rs and Articles of
Incorporation, or selectively enforce rules, and pick and choose who
receives the services that every homeowner is paying for. They
absolutely must make an example out of you, or others may decide you
were right in your efforts to expose the bad actors.
I’m currently in the midst of my third lawsuit with the most despicable
of HOAs. I have tried to settle the current case three
times. The board made an agreement in mediation and then
changed the agreement to the way they wanted it to be, and told the
judge I refused to sign it. We’ve been to mediation twice. They have changed attorneys three times. We’ve had three trial
dates and the HOA has canceled each one of them.
All of this
avoidance to settle this case costs me more money, because my attorney
has to keep starting over. It’s clear the HOA board and their
attorneys are trying to bankrupt me, take my home and leave me with no
money or a roof over my head. I am convinced they would also like
to see my name in the obituaries. They would be so proud of that,
because they are evil, wicked, hate-filled, and rotten adult
bullies. The ONLY thing that matters to them is power and money
over their neighbors!
I never knew such a level of hatred existed for other human beings
until I encountered it first-hand in this HOA. It’s sad and it’s
scary to think such sick-minded people have control over your home,
health, and your financial well-being and there is little you can do to
Chuck Welsh is a decorated Navy Veteran of the Gulf War, a licensed
yacht captain with his own business, and a former land developer. His
life has been spent on the water, and boating is his passion. In the
early 2000s, Welsh was thrilled to invest in a new Florida condominium
with views of the Intracoastal Waterway, a private Marina, and an
optional “deep water” boat slip for his sail boat.
Unfortunately, shortly after purchasing his condo, while the Marina was
still under construction, the real estate market tanked. At that point,
only 5% of condo owners had invested $150,000 apiece for boat slips.
Continued construction came to a standstill. Welsh and other boat
owners were dismayed to discover that, at low tide, it was impossible
to safely navigate the channel from within the marina to the
Intracoastal Waterway. Naturally, boat slip owners complained.
According to Welsh, the developer made promises to address the problem,
but never did. Then the bank foreclosed on the developer. Ultimately,
the association was turned over to condo owners, but the developer
first appointed a member to the board to serve as condo association
President. Two other board members, who were intent on dealing with the
marina issue, were chosen by condo owners. Owners of boat slips hoped
the board would address the problem of the shallow Marina. In fact,
they insisted on hiring an attorney to sue the developer. But the Board
President refused to discuss the issue, and organized a recall of the
other two board members. Welsh vocally objected to this recall, since
it was done “in the dark of night”, and no one owning a boat slip was
made aware that it was occurring. He indicated that it was his intent
to take legal action to see that funds were expended to make the marina
functional, and, as a result, he was essentially perceived as a threat
by the condominium President.
Shortly thereafter, when Welsh was bringing his boat into the marina at
high tide, he was approached by an officer of the Florida Wildlife
Commission. Someone had filed a complaint that Welsh was operating his
boat in a reckless manner. “After talking to me, the FWC officer
realized that the complaint was unfounded and made falsely,” says
Welsh. Two weeks later, a neighbor informed Welsh that each condo owner
had received a letter from the Condo Association President, accusing
him of harassing condo owners, and describing him as ‘dangerous.’
Welsh was horrified. “To accuse me, a Navy Veteran, of reckless
operation and being under the influence of alcohol, that could result
in losing my license.” Welsh concluded the false accusations were
retaliatory, due to his dispute with the condo association president,
who did not possess a slip nor boat and stated that she “did not want
to hear anything else about the marina”. Because of the seriousness of
the situation, Welsh filed a defamation suit against the condo
association and its president in 2012.
Welsh then moved out of his condo. “After they did what they did to me,
I left, and never went back,” said Welsh. “I was very concerned because
the condo board President seemed intent on having me discredited and
even arrested in an effort to silence my complaints. There was no way I
could stay there for fear every time I went out on my boat, someone
would just randomly call the police, and I had no interest in staying
after filing the suit. I paid my mortgage and dues for a year, until
the legal fees soaked me to a point I could not pay anymore.”
I was uncomfortable trying to rent the place, because the condo board
had authority to approve/disapprove a renter and another owner had
already faced difficulty getting tenants approved. I put the place on
the market but, while priced at half of what I paid, my only offers
were substantially less than that. The bank worked with me for nearly 3
years, knowing I was in litigation, but, on the advice of an attorney,
as opposed to a short sale, I opted with foreclosure in February of
The Association’s insurance defense attorneys, who also represented the
President at no cost to her, used a qualified privilege defense,
arguing that it was the board’s duty warn others of potential danger,
real or not. But for a qualified privilege defense to be successful,
the defamation has to be made “in good faith.” The burden is on the
Plaintiff – in this case Welsh – to prove that false statements and
accusations were made intentionally, recklessly, or out of malice,
hatred, spite, or ill will—in effect, targeting Welsh specifically.
Over nearly 5 years, Welsh says the case, which is still ongoing, has
involved no less than 20 depositions, endless motions and hearings, and
continuously delayed court dates. The defense has refused to cooperate,
and the case dragged on as legal costs multiplied. During that time,
Welsh has endured a great deal of stress. He ultimately gave up his
dream condo to the bank at foreclosure.
According to Welsh, at least seven condo owners have gone on record
defending him on the grounds that they either saw him operating his
boat professionally at the time and/or the allegation was as an obvious
result of the dispute.
Welsh estimates that he has spent nearly $150,000 in legal and
associated expenses. He cautions readers, “There is a lot to take from
this case when considering litigation against your HOA or Condominium
Association and the uphill battle that it can be, regardless of the
merit of your complaint.”
Some homeowners I interview ask me to not share their real names, for
fear of retaliation. Their requests for anonymity are quite common. The
homeowner’s name in this summary has been changed to protect her
Darlene, a wife and mother involved in a Fair Housing lawsuit,
describes her experience:
“Trust and friendships are totally lost. It is extremely
destructive to your friendships and connections – even business, even
neighbors who agree with you. You really do not know if the
people who are for you will be mentioning details, even unwittingly, to
your detriment. You basically are forced to shut down and move
either way, whether you win or not. If the issue drags on for
years, as in our case, your life is “on hold” during all this time.”
“Your children’s lives are also destroyed. My children can no
longer play with their best friends as the parents support the
HOA. We don’t know what information will be conveyed back to
these people. It is the children who are harmed and damaged
beyond belief in this. They will grow up with the idea that your
neighbors are not people you can count on.”
“My pre-HOA version of trust is forever changed as well. We used
to take meals to neighbors when sick. No one came to our aid, no
With regard to moving, Darlene explains, “I sincerely thought we’d be
able to find something affordable over time outside of an HOA. I
knew it would take a longer time than normal, but not this long.
I did not fully understand that depression could keep you from feeling
like you could move at all.”
“Looking back on the struggle, I would not buy into an HOA. We’d
have never had these issues…I’d have never had to have gone “on record”
to a Board … chairman who would berate and mock my medical condition.”
Donna Simpson,a homeowner in Poinciana, Florida, one of the largest
HOAs in the U.S. The large scale community spans portions of Osceola
and Polk Counties, and is home to more than 52,000 residents. The
Association is made up of nine individual Village Boards under the Master
Board (Association of Poinciana Villages, or APV).
In the early part of the century, Poinciana had a population explosion.
That was followed by financial distress during the recession. Most
homeowners pay $252 annually per property owned, although annual
assessments for a portion of Village 1 are nearly double that amount at
$484. That discrepancy is one matter of contention, because homeowners
do not appear to be getting any additional service in return for much
Even though annual assessments are relatively low, widespread
unemployment and default on sub-prime mortgages meant many homeowners
were unable to pay.
Simpson explains, “Our community group known as Friends of Poinciana
Villages (FOPV) has two matters: one filed with the Polk County Florida
courts (Lawsuit filed in October 2015 against the Master HOA itself,
developer and Village 1 Association – the developer still controls a
majority of the Master board, along with each Village board) and the
other a complaint to the Florida Department of Business Professional
Regulation (DBPR).” The DBPR complaint involves a dispute over the last
election of the Association of Poinciana Villages (APV) Board. The
lawsuit involves a dispute over the Master Association’s failure to
follow the governing documents and State Laws, along with the developer
not following an agreement known as the “1985 Agreement”. Questions
have also been raised as to the legal standing of this HOA according to
Florida’s Marketable Records Title Act better known as “MRTA”.
Shelly Marshall is an adolescent chemical dependency specialist,
publisher and author of several books on recovery from addiction. But
several years ago, when Marshall purchased a home in rural Utah,
governed by an HOA, she found herself in the middle of a power play
involving not one, but two, overbearing HOA boards. After several years
of efforts and a lawsuit, Marshall wrote the HOA Warrior Series to
share the frustrations and success of her experience, and to help other
owners resolve disputes with their HOAs.
Shelly Marshall summarizes her HOA litigation experience:
“In my case, there was a group of 225–We all wanted a vote–to vote on
our business and to vote on a manager–the board refused, so we
organized for the next member meeting. They canceled the meeting at the
last minute so we held the meeting anyway. Members can do that but the
board refused to recognize it so we had to file suit.
We filed a lawsuit for the right to vote. They [the HOA] then filed a
lawsuit for $250,000 naming me, six others and 100 John Does. That meant
if anyone tried to help us they would add their name. It was
When we went to our first hearing, It was so obvious that the judge was
on our side and going to let us vote, that the board gave up and
dropped the suits and gave us our vote.
The upshot was that our attorney charged $16,000 and theirs $80,000!
The association blamed me and said I caused all the expense. Then our
new board started doing what the old board did.
So eventually we had the same problems but dealt with it without going
I filed a complaint [with the bar] against our attorney (the board’s)
because he did so many dishonest things and cost the association so
much money, even though he knew they were in the wrong. After we took
over the board, we found his letter that told the board they had ‘not
clean hands’ and could lose but told them they had more money and so
could probably outlast us.
I filed the letter with the complaint but the bar didn’t care. They
found that he had not done anything wrong! The attorney absolutely did
not do what was in the best interests of the association–he just wanted
Very very dishonest and part of the good old boys club.
“I would not go to court a second time because by then, I realized how
stacked against owners any legal recourse was–our group had been
incredibly lucky that we got an honest and caring judge. You could
never count on that a second time.”
Jonathan Friedrich purchased his home in 2003, shortly after his
retirement. Before he purchased the home, Friedrich was given a set of
Covenants, Conditions, & Restrictions (CC&Rs) for Unit 2,
although he later discovered that his house is in actually located in
Unit 1, which was never subject to a legal homeowners’ association.
Unaware of the truth, for more than a decade, the homeowner paid HOA
assessments for common expenses such as the cost of gated security
While investigating another matter, the State of Nevada Real Estate
Division discovered that Unit 1 was never an association. Realizing the
error, his HOA attempted to convince Friedrich to sign documents to
make his property part of HOA Unit 2, but he refused.
Friedrich then stopped paying assessments which led the association to
attempt to foreclose on him.
But Friedrich later found out that four other owners in Unit 1 have
never paid assessments.
Friedrich’s legal challenge claims that the HOA had no right to charge
him monthly assessments for over 10 years. He has sued the HOA for
falsely representing their authority over his home as well as their
attempt to foreclose on him. The suit also seeks to recover assessments
Friedrich has paid for the years leading up to the lawsuit filed in
2015. The District Court has found in Friedrich’s favor, ruling his
home is not part of any association. The judge confirmed that Unit 2
CC&Rs exempt all of Unit 1 owners from the Unit 2 CC&Rs.
According to Friedrich, “The battle with Rancho Bel Air in Las Vegas is
still raging. As of October 2016, I have expended over $117,000 in
legal fees. The association has been sanctioned twice for violating the
discovery rules by not responding to requests for documents or not
answering questions. Each sanction was for $5,000.
The association’s insurance company has been paying for the defense of
the association and has paid the sanctions.
I have notified many of the 120 owners of the community of the rulings
of the Court including the granting of Summary Judgment AGAINST the
association in that my home was never in an association.
A jury trial is to take place this coming January (2017) to determine
damages against the association including finding them guilty of
fraud, misrepresentation, elder abuse, violation of the fair debt
collection practices act, violation of the State Civil RICO Act and five
other causes of action.”
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