Who in HOA is liable for the damage and Is their Rule Valid Still?

[java303]

What is the name of your state (only U.S. law)?
California

My HOA overrode state laws and imposed a rule according to which we could keep only one car inside the community. Outside, it is crime infested and just as we predicted, my car ended up with $10,000 worth of damage within a month of starting that rule. It was totaled. I was paid some money by my insurance. But I know I can get the remaining from HOA. When I went to investigate the matter basically this is what I found out:

1. The director violated conflict of interest law of the state and thus, is individually liable.

2. HOA broke countless laws when they went to impose that rule. In a text message, one of their officials said it had 95% approval. I asked for evidence. Nothing I ever got. I also wanted the evidence that they followed the law by sending us the proposal 30 days before putting it for votes, mail in which we were told there would be a meeting, agenda notice showing clearly that there would be voting for the rule, etc. Nothing was sent. However, last November, we got a letter from their attorney in which he pretended to not knowing that there is a due date for HOA to send requested materials to members. He told us to give them a specific date for them. He assured me that I would get what I requested including the CCR. I haven't responded yet because I am startled by the foolish thing they did by sending us that letter. I can use the following law to get my money:

Corp. Code, Section 8215
Any officers, directors, employees or agents of a corporation who do any of the following are liable jointly and severally for all the damages resulting therefrom to the corporation or any person injured thereby who relied thereupon or to both:

(a) Make, issue, deliver or publish any prospectus, report, circular, certificate, financial statement, balance sheet, public notice or document respecting the corporation or its memberships, assets, liabilities, capital, dividends, business, earnings or accounts which is false in any material respect, knowing it to be false, or participate in the making, issuance, delivery or publication thereof with knowledge that the same is false in a material respect.

(b) Make or cause to be made in the books, minutes, records or accounts of a corporation any entry which is false in any material particular knowing such entry is false.

(c) Remove, erase, alter or cancel any entry in any books or records of the corporation, with intent to deceive.

But as you can see, we have two options above. HOA still has no idea that the director violated conflict of interest rule. As far as I know, it was his job to tell them that he worked on cars. He wasn't supposed to participate in making of that rule. I also see that the lawyer is being dishonest. He has pretty much put HOA in big trouble with such a confession letter. He is their consultant. Can my HOA hold him liable for the damages if I notify them that the man misguided them about laws? This is what I see in the letter. The topic we are all dealing with is so basic that it is hard for me digest that the lawyer isn't educated about it.

Lastly, after all this, is their new rule still valid?

 

[Ohiogal]

What is the name of your state (only U.S. law)?
California

My HOA overrode state laws and imposed a rule according to which we could keep only one car inside the community. Outside, it is crime infested and just as we predicted, my car ended up with $10,000 worth of damage within a month of starting that rule. It was totaled. I was paid some money by my insurance. But I know I can get the remaining from HOA. When I went to investigate the matter basically this is what I found out:

1. The director violated conflict of interest law of the state and thus, is individually liable.

2. HOA broke countless laws when they went to impose that rule. In a text message, one of their officials said it had 95% approval. I asked for evidence. Nothing I ever got. I also wanted the evidence that they followed the law by sending us the proposal 30 days before putting it for votes, mail in which we were told there would be a meeting, agenda notice showing clearly that there would be voting for the rule, etc. Nothing was sent. However, last November, we got a letter from their attorney in which he pretended to not knowing that there is a due date for HOA to send requested materials to members. He told us to give them a specific date for them. He assured me that I would get what I requested including the CCR. I haven't responded yet because I am startled by the foolish thing they did by sending us that letter. I can use the following law to get my money:

Corp. Code, Section 8215
Any officers, directors, employees or agents of a corporation who do any of the following are liable jointly and severally for all the damages resulting therefrom to the corporation or any person injured thereby who relied thereupon or to both:

(a) Make, issue, deliver or publish any prospectus, report, circular, certificate, financial statement, balance sheet, public notice or document respecting the corporation or its memberships, assets, liabilities, capital, dividends, business, earnings or accounts which is false in any material respect, knowing it to be false, or participate in the making, issuance, delivery or publication thereof with knowledge that the same is false in a material respect.

(b) Make or cause to be made in the books, minutes, records or accounts of a corporation any entry which is false in any material particular knowing such entry is false.

(c) Remove, erase, alter or cancel any entry in any books or records of the corporation, with intent to deceive.

But as you can see, we have two options above. HOA still has no idea that the director violated conflict of interest rule. As far as I know, it was his job to tell them that he worked on cars. He wasn't supposed to participate in making of that rule. I also see that the lawyer is being dishonest. He has pretty much put HOA in big trouble with such a confession letter. He is their consultant. Can my HOA hold him liable for the damages if I notify them that the man misguided them about laws? This is what I see in the letter. The topic we are all dealing with is so basic that it is hard for me digest that the lawyer isn't educated about it.

Lastly, after all this, is their new rule still valid?

How did the director violate the conflict of interest law? Because I see where you didn't respond to the attorney. Hence you didn't really want the information.

 

[Zigner]

I am curious as to why the OP thinks s/he is due anything more than the actual value of his car at the time of the loss.

 

[not2cleverRed]

Observation: The HOA only required that at most one vehicle was allowed to be kept inside the community. The HOA did not have anything to do with where OP parked their car outside of the community. That OP chose to park their car in a "high crime" area for convenience rather than further away in a safer (private?) lot is on OP.

 

[LdiJ]

Observation: The HOA only required that at most one vehicle was allowed to be kept inside the community. The HOA did not have anything to do with where OP parked their car outside of the community. That OP chose to park their car in a "high crime" area for convenience rather than further away in a safer (private?) lot is on OP.

Assuming that there is a safe, private lot within walking distance. My question however would be whether or not they could impose such a significant, new rule without a vote from the membership.

 

[PayrollHRGuy]

That would be a question that would be answered in the HOAs bylaws.

 

[Zigner]

Assuming that there is a safe, private lot within walking distance. My question however would be whether or not they could impose such a significant, new rule without a vote from the membership.

Insofar as the damage is concerned, it doesn't matter. The HOA didn't cause the damage, the bad person(s) did.

 

[HRZ]

I'm not seeing a legal connection of HOA as to where OP might park 2d or more cars either

 

[java303]

How did the director violate the conflict of interest law? Because I see where you didn't respond to the attorney. Hence you didn't really want the information.

He fixes cars. Strangely, the one who damaged my car also was a mechanic like him. The letter came after two of our requests. One was a reminder. The letter came after months.

I am curious as to why the OP thinks s/he is due anything more than the actual value of his car at the time of the loss.

Forgot to say, my car was not only the one. In our state, you can sue for the remaining. For instance, one girl got back her remaining after she found the person who broke her car on FB. She sent him a message in which she said she would sue him. He agreed to then pay. Wages lost can be recovered here.

Observation: The HOA only required that at most one vehicle was allowed to be kept inside the community. The HOA did not have anything to do with where OP parked their car outside of the community. That OP chose to park their car in a "high crime" area for convenience rather than further away in a safer (private?) lot is on OP.

Assuming that there is a safe, private lot within walking distance. My question however would be whether or not they could impose such a significant, new rule without a vote from the membership.

LdiJ has a good point.

Our state already had a court case in which it was made firm by the judge that HOA has duty to take surrounding areas' crimes into account when making a rule. We actually have no parking system outside. We are forced to park two signals away in another neighborhood. I am not sure how long that would go on. That neighborhood is now literally "abused" by the people of our community. Our cars are flooded there. Neighbors of that place can petition anytime to get their own permits or limit how long an outsider can park there. Our own parking problem in the community persists. Each house received one permit. All of us have two car garages. Now those who have one or two cars takes advantage of it. Many of them keep their garages empty to park outside. Consequently, the whole problem of parking persists. Directors have fiduciary duties and one of them is to rely on experts to make rules. If they fail then they become liable. They have a duty to maximize the house prices.

That would be a question that would be answered in the HOAs bylaws.

They can't even show us CC&Rs. It would be $500+ fine if state comes to know about it. We have the right to see the evidence of 95% vote win. They should not have any problem in showing that if it is actually true. As shown in our law, state forbids them from circulating false information.

Insofar as the damage is concerned, it doesn't matter. The HOA didn't cause the damage, the bad person(s) did.

Check the law I pasted from our state site. California also makes HOA liable for damage caused to a car at the time of towing it. It does not even have to be inside the community. But yeah, rule cannot be made without research. They were told endlessly about how our area is crime infested. The result? Directors without telling anyone became absent on the day they were going to distribute the permits. They gave us the notice that it was a "meeting". But when those people didn't come. Meeting was cancelled, but the manager still handed the permits. That now is action without meeting, another violation of state laws.

These are some of the things we have so far:

Directors didn't go by their fiduciary duties: They were told many times about how bad the situation is outside. They didn't care. The one who made the law was not supposed to be even present because of his profession. Our law also says "potential conflict of interest". It is very much clear that the man didn't reveal his profession even to HOA attorneys.

Gave members false information: State requires agenda to be clearly written within the notice. They were supposed to write "voting for parking permit" or something. It wasn't there. No sign of 95% voting evidence. No sign that they sent us the proposal in the mail. According to attorney's letter, manager outsourced the job of mailing to another company and he has no record of whom they were sent. But the attorney still asked me if I would like I can ask them for proof that the manager had the mailing list.

Action without meeting: Manager kept calling the two directors on the day they were gonna give the permits. There were protests. Meeting got cancelled, but action of giving permits was still done.

My car was damaged within a month of starting that rule. Four other cars ended up with flat tires. That is taken as another red flag by the state.

Just letting you know in the past, I got back my money when this same manager got my car towed. He was supposed to leave a warning. He first said he did. I asked him to show it. He couldn't. Eventually, he told the tow company to give me refund.