Association Litigation

There are many objections to board service that are often cited by unit owners who are reluctant to serve on their community association’s board of directors. While the time commitment is a prevalent concern, some believe that the post also brings with it an unreasonable level of liability and exposure to lawsuits by disgruntled unit owners.

To quell those concerns, such individuals should recognize that condo associations and HOAs typically carry Directors and Officers Liability Insurance (aka D&O insurance), which serves to defend and protect directors from lawsuits to which they may be exposed. Additionally, directors are also protected by indemnification provisions of the Florida laws governing not-for-profit corporations as well as the articles of incorporation of their association.

Firm shareholder Michael L. Hyman authored an article that appeared as a “Board of Contributors” guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper. The article, which is titled “Circuit, Appellate Courts Issue Injunction Against HOA to Fix Flooding Problems,” focuses on recent decisions by circuit and appellate courts that illustrate how Florida’s courts will issue mandatory injunctions to force community associations to do their duty to maintain drainage systems. The article reads:

The case of Coconut Key Homeowner’s Association v. Gonzalez pitted a homeowner against her HOA, which she alleged breached its governing documents by failing to properly maintain the surface water management system for the community. This caused chronic flooding problems in her own backyard whenever it rained and led to significant damage to her home.

Gonzalez sought an injunction to require the association to cure the alleged surface water management violations and stop the flooding problem. A Broward circuit court jury ruled in her favor, concluding that the association breached its governing documents by failing to maintain and operate the surface water management system in the community. However, it concluded that this breach was not a legal cause of damage to Gonzalez, so it awarded no monetary damages.

The court then conducted a post-trial hearing on whether to issue an injunction against the association. It granted Gonzalez’s motion for a mandatory injunction in accord with the jury’s finding that the HOA’s violations of its own governing documents caused her irreparable harm without an adequate remedy under the law.

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Articles Posted in Association Litigation

Community Association Directors, Officers Are Protected from Frivolous Lawsuits

Michael Hyman Authors Article Appearing in Today’s Daily Business Review: “Circuit, Appellate Courts Issue Injunction Against HOA to Fix Flooding Problems”