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Articles Posted in Boards of Directors

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Workplace Harassment in a HOA Environment

*New Library Article! Workplace harassment and hostile work environments are nothing new for management professionals.  Emotionally charged conversations can become uncomfortable and antagonistic for many managers.  Unfortunately, such dialogue frequently crosses the line from demanding direction to demeaning personal attacks. Previously, employer liability for employee claims based on nonemployee conduct…

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Recent California Court of Appeal Ruling Limits Anti-SLAPP Protection for Actions by Board of Directors

*Unpublished Opinion The recent unpublished opinion of Chemers v. Quail Hill Community Association et al. (2018) shines some light on the oft-misunderstood California Anti-SLAPP statute and its effectiveness as a defense for actions by a homeowners association’s board of directors.  The Fourth District California Court of Appeal held that certain…

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AB 2912: New Protections Against the Misuse of HOA Funds

*New Library Article! Assembly Bill 2912 (“AB 2912”) was recently enacted by the California Legislature.  Its changes to the law, which take effect January 1, 2019, are intended “to protect owners in a [HOA] from fraudulent activity by those entrusted with the management of the [HOA’s] finances.”  To that end,…

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Should an Association Respond to Unofficial Publications?

*Unpublished Opinion With increasing frequency, homeowners associations are confronted with members publishing content related to their association and its operations, whether on Facebook, blog posts, or other various online forums. Sometimes these publications are critical of the association board of directors, misrepresent important information and facts, or fraudulently purport to…

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Sticks and Stones

As HOA industry professionals, there are many positive aspects to our occupation.  We work with a diverse group of people, take fulfillment from helping volunteer boards, and are happy when we solve problems through creativity.  Unfortunately, there are situations that can become difficult. Most association managers (“Manager”) have had some…

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The National Labor Relations Board Had a Change of Heart on Joint-Employer Liability

Previously, we wrote on a decision published by the National Labor Relations Board (“NLRB”) wherein the NLRB concluded that, where a contracting party has reserved the authority to exercise control over the employees of another, said contracting party will be found to be the “joint employer” of the other entity’s…

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AB 1412 Signed: Clarification of Two (2) Existing Code Sections (Member Notification and Director/Officer Liability)

On September 25, 2017, Governor Brown signed AB 1412 (effective January 1, 2018) which seeks to clarify Civil Code Section 4041 (Annual Notice of Owner Contact Information) and Civil Code Section 5800 (Limitation of Director and Officer Liability). Under current law, Civil Code Section 4041 requires the Association to solicit, on an annual…

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Business Judgment Rule Doesn’t Apply When the Board Acts Outside its Authority

*Unpublished Case ISSUE: Is an HOA Board of Directors (“Board”) entitled to protection under the Business Judgment Rule (“BJR”) when it applies an unambiguous view restriction contained in the governing documents in a manner other than written? RULE: No.  In Lingenbrink v. Del Rayo Estates Homeowners Association, 2017 WL 1075062…

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Business Judgment Rule Does Not Protect the Willfully Ignorant

*New Case Law Volunteer homeowners association (“HOA”) directors are fiduciaries who are held to high standards of conduct when making decisions or taking actions on behalf of the communities they represent. Sometimes those decisions, which may seem reasonable at the time, ultimately lead to problems for the HOA or its…