CCR Amendment Threat to Sue

[JamesWhitney]

Our HOA was devastated by a legal action taken against a homeowner last year. Our Board President and Vice President had an axe to grind with this person, made a poor decision and we ended up paying the homeowner’s legal fees and legal representation for the HOA after the owner won the case (20k). We are a small community of 12 homes. The majority of the owners decided a CCR amendment was necessary to ensure this doesn’t happen again. We have a new Board (the old Board was removed for obvious reasons) who had the ballot created through our lawyer. Two thirds of the owners voted for the change and the Board signed and filed the official amendment. One third didn’t vote at all. The old Board and a few of their friends (the one third) are now threatening legal action against the Board, verbally so far. Can they do anything? If so, would they have to sue everyone who voted for the amendment? Any thoughts on what grounds they could have to do so? The amendment was to obtain majority community approval in writing before legal action by the Board could be taken against a member. All legal requirements were met to ensure the amendment was done correctly. Thanks.

 

[Zigner]

Our HOA was devastated by a legal action taken against a homeowner last year. Our Board President and Vice President had an axe to grind with this person, made a poor decision and we ended up paying the homeowner’s legal fees and legal representation for the HOA after the owner won the case (20k). We are a small community of 12 homes. The majority of the owners decided a CCR amendment was necessary to ensure this doesn’t happen again. We have a new Board (the old Board was removed for obvious reasons) who had the ballot created through our lawyer. Two thirds of the owners voted for the change and the Board signed and filed the official amendment. One third didn’t vote at all. The old Board and a few of their friends (the one third) are now threatening legal action against the Board, verbally so far. Can they do anything? If so, would they have to sue everyone who voted for the amendment? Any thoughts on what grounds they could have to do so? The amendment was to obtain majority community approval in writing before legal action by the Board could be taken against a member. All legal requirements were met to ensure the amendment was done correctly. Thanks.

Your board will want to consult with an attorney in your state about the matter. This is not something for which you should look to internet strangers for answers on.