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Articles Posted in Contracts and Vendors

One of the most important tasks for community association board members is the oversight of maintenance, cleaning, security, valet parking, construction/painting, landscaping and other vendor services. These essential services require the use of written contracts that should include vital protections for associations, which would be well advised to turn to highly experienced community association attorneys to help ensure such contracts include all of the appropriate stipulations.

One of the primary considerations for most of these contracts is insurance. Vendors must maintain proper and adequate insurance to protect associations, their staff and their residents from any potential legal and financial liabilities that may arise from the execution of the services being performed under the contract. At a minimum, vendors’ insurance should include worker’s compensation coverage for employees who may by injured while on association property as well as general liability coverage.

The association should also insist that it be named as an additional insured and certificate holder, which would require that it be notified of any changes in the contractor’s insurance.

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As new spikes in Covid-19 cases continue to unfold and communities seek to maintain their mitigation measures, the financial trials and tribulations created by the pandemic in condominium association and HOA communities throughout the country become ever more apparent. The continued proliferation of Covid-19 cases underscores that while many may be letting their guard down and growing fatigued as to the measures to protect against the spread of the virus, community association stakeholders should remain proactive and forward-thinking in order to best position their associations for the consequences that may arise due to the pandemic.

Some community associations have begun to experience the burdens resulting from lower collections rates caused by strains on the job market due to the pandemic.  While the exact impact on the many types of community associations may be unknown, it has been suggested that delinquency rates could exponentially increase. Bank-owned-2-300x257 In response to such expectations, we continue to suggest that community association boards and managers should continue considering the development of acceptable uniform payment plans that may be offered to those who have lost jobs and businesses.

Similarly, some have proposed that community associations should also think about postponing discretionary improvements to community amenities until late 2021 or even 2022.

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Plug-in electric vehicles are one of the fastest-growing segments of the automotive industry, and sources have claimed that sales of such vehicles are predicted to reach one out of every five vehicles sold during the next decade.  As a result of this growing trend, condominium communities nationwide are confronted with numerous concerns which must be addressed in order to accommodate the needs of an increasing percentage of unit owners hoping to find a solution to their electric vehicles’ charging needs.

Florida legislation adopted recently now requires condominium associations to accommodate owner requests to enable electric vehicle charging, with all the related costs being borne by the requesting owners.

carchrg2-300x155Condominium associations have generally adopted two distinctive approaches to address needs and requests related to their members’ electric vehicle charging needs.  Some associations with available space for a dedicated electric vehicle parking area have opted to install shared community charging stations.  Those communities opting for this approach may have pursued the installation of the charging stations on their own, while others may have availed themselves of third-party vendors interested in coordinating and funding the installation of such charging stations at the condominium.

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Jeffrey-Respler-high-res-200x300Shareholder Jeffrey S. Respler authored an article that is featured as the “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 “Association Construction Contracts Require Deft Negotiation by Legal Counsel,” focuses on the nuances of construction contracts that community associations execute with general contractors for major renovation and remodeling projects.  It reads:

. . . Construction contracts often represent some of the costliest expenses that condominium associations will ever approve, yet many associations fail to utilize the necessary legal resources and expertise to craft and execute the most effective terms and agreements. Instead, they focus merely on obtaining competitive bids, as most associations are required to do for projects exceeding 5% of their total annual budget (10% for HOAs), and often neglect to consult with highly qualified and experienced legal counsel to negotiate and finalize every aspect of their agreement with a general contractor.

Without a lawyer involved, a poorly negotiated and written construction contract can have serious consequences. Having a qualified and experienced attorney draft or review an association’s contract can help avoid risks and expensive disputes. Dealing with the aftereffects of a poorly negotiated or poorly written contract can be far more expensive than paying a lawyer to do it correctly in the first place. An experienced attorney can draft and negotiate a contract that will protect an association’s interests and be legally sound.

dbr-logo-300x57Attorneys write contracts in ways that favor their clients. Attorneys with experience in the construction industry will know the customary contract terms, and they will draft a contract in their client’s favor. If the contractor is drafting the contract, its lawyer will be doing exactly that.

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Laura-Manning-Hudson-Gort-photo-200x300Our firm’s South Florida community association attorneys are often called upon by journalists for their insights into the issues impacting condo communities and HOAs.  When The New York Times “Wealth Matters” columnist Paul Sullivan decided he needed to turn to a highly experienced community association attorney for input for a major article on association living, he called on shareholder Laura Manning-Hudson in our West Palm Beach office.

Paul’s article, which is titled “When Condo Boards and Residents Clash, Legal Bills Mount” and appeared in the Your Money section on Saturday, March 30, 2019, focuses on some of the most common issues that can cause disruptions and financial strains for community associations.  It reads:

My mother-in-law recently regaled me with a tale of intrigue, money and power in her South Florida homeowners association.

Seeking to raise about $6 million to refurbish the 20-year-old community, the association’s board had voted to assess each homeowner $7,000. But a group of vocal residents fought back, setting up a power struggle.

This conflict is nothing new to anyone who has dealt with a condominium board or homeowners association, which has well-defined obligations to the residents. As the overseer, it hires workers to cut the lawn, take out the trash, clean lobbies and common areas and maintain pools, tennis courts, golf courses and other amenities. If the elevator breaks or the roof leaks, the board gets it fixed.

But if it wants to do something cosmetic — renovate the lobby, add pickle ball courts or install a fitness center — the board needs to put its idea to a vote of the residents.

timslgo-300x46The article continues:

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Nick-Siegfried-2013-thumb-120x180-61267jmilesThe firm’s Joseph A. Miles and Nicholas D. Siegfried were featured in an article in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper, about a major verdict that they recently secured for one of the firm’s clients.  The article, which is titled “South Florida Lawyers Win $4.1M for Cable Company Fired Over Service Delays,” focuses on their work in securing the verdict for an affiliate of Miami-based OpticalTel in a case involving the company’s wrongful termination by a Central Florida HOA.  The article reads:

Coral Gables lawyers Joseph A. Miles and Nicholas D. Siegfried landed a $4.1 million verdict for Miami-based company PC Services LLC, which claimed the Cascades of Groveland Homeowners’ Association Inc. in Lake County should never have terminated an agreement with the company because it wasn’t responsible for a flurry of delays and problems with services.

The 2012 lawsuit arose from years of bad blood between the parties over a deal that turned sour. On July 2007, the homeowner association terminated its contract with PC Services, claiming it had failed to properly do its job. But PC Services argued it had and lost the opportunity to make a profit on its $1.6 million investment.

The defense argued it was right to terminate the agreement because it didn’t get what PC Services promised.

dbrlogo-300x57Defense lawyers Aristides J. Diaz and Thomas R. Slaten Jr. of Larsen & Associates in Orlando did not respond to requests for comment before deadline.

Making the case was no small feat for the Siegfried Rivera lawyers, as it was laced with technical jargon that would likely stump the average juror.

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