Legal Question in Real Estate Law in California
Homeowners Association Officer's Responsibility
Can a past treasurer of our HOA be sued for negligence for failing to inform the HOA of the tripling of our water bill due to an undected leak in the main?
Timeline: Feb. 2004, leak detected in main water pipe. Leak fixed.
June 2004-Treasurer ''mentioned that water bill had only gone up about $50 a month''.
Sept. 2004-Treasurer now says water bill had gone up $100 a month.
Dec. 2004-Treasurer resigns post,(due to pending sale of their unit) says that water bill has gone up even more.
New treasurer determines that water bill has quadrupled.
Second leak detected and fixed. Reserves have been drained to an extremely low level.
HOA Board wants to recover excess above average water bills from previous Treasurer. Will the HOA policy that covers the officers be liable, or will only the previous treasurer personally be liable?
Does the HOA have to notify the escrow company of the past treasurer's unit that is for sale? If so, will it cause the sale to fall through? Will the current officers be held liable?
1 Answer from Attorneys
Re: Homeowners Association Officer's Responsibility
I am answering your question generically and not specifically. I would need to review your governing documents and all documents related to your issue in order to answer the question correctly. Normally, all lawsuits such as these must be disclosed to all potential buyers and lenders when refinancing takes place. Assuming liablity by an officer, I generally file a lawsuit by the Association against the Board of Directors. The E & O carrier then negotiates a settlement based upon the liability and negligence. If you need further assistance, please contact me at 714 363 0220. Our office handles Homeowner Association cases throughout California.
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