Do your owners have a right to know when your condo or HOA has been sued?

Case Overview

“The homeowner is seeking $8 million against the HOA claiming that the HOA’s
architectural review committee improperly denied their request to build a large home on
the grounds that it would block the views to Lake Mead. The problem is that the HOA
board hasn’t notified the community owners about the lawsuit and they heard about it
only because the plaintiff (one of their neighbors) sent a letter to all the owners.”

Insights from Julie McGhee Howard

Julie McGhee Howard, representing Georgia HOA in an interview featured on HOAleader.com, comments on what is the practice of law in GA with regard to disclosing lawsuits filed against lawsuits or HOAs.

Julie says, “There is no duty to disclose a lawsuit to the owners by the board. No affirmative duty. There are contexts where it may arise, but the board is not obligated to disclose that.”

“In Georgia, we have the right to repair act, so if there were a matter related to construction defect, there is a whole different body of law that applies and there is a requirement for an owner vote to approve the proceeding. So that would be something separate and apart from general association operations including architectural reviews that you’re raising.

Do your owners have a right to know about potential lawsuits?

“There is no duty to disclose a potential lawsuit to the owners. One thing we haven’t talked about yet is the association board should be notifying it’s insurance carrier of potential litigation. So that is a whole different issue, but as far as notifying the owner, there is no duty.”

Have Questions About HOA Lawsuits?

If you need additional guidance on disclosure obligations, our experienced attorneys are here to help. Contact our team of HOA attorneys today for expert legal advice and representation!