A huge jury verdict in Nevada was just awarded to a homeowner against two HOA collection companies. Across the country many HOA boards assess minor fines and liens against homeowners and then turn the accounts over to their law firms for collection. It’s so tempting for an ambulance-chasing law firm to turn to the easy profits of debt collecting. It’s not unheard of for minor fines to turn into huge foreclosures. Law firms add so-called ‘collection costs’, legal fees, interest and other such nonsense onto nickel-and-dime fines. It’s enormously profitable for such lawyers to have a buddy down at the county offices when the properties are auctioned off for pennies on the dollar. A whole roomful of Las Vegas lawyers are in jail right now for similar racketeering convictions.
The law firm hired by the Arrowcreek Homeowners Association in Washoe County, Nevada was accused of violating federal and state regulations against racketeering and violations of the Fair Debt Collections Act. The jury agreed and awarded the homeowner more than $600 thousand.
The link below is to a press release by the homeowners legal team. Obviously, the press release is to attract business. But since this law firm has affiliates in many other states it could possibly strike some fear in the hearts of the HOA Lawn Nazis!
We’ve seen this kind of thing over and over. You buy an expensive HOA home next to a golf course or a pretty little lake. You pay an extra high premium for such a nice view.
Suddenly, it all goes away. The golf course is sold to a new developer who hatches a plan to add a whole new subdivision on top of the golf course. The pretty little lake, it turns out, is a drainage basin for the county and the county suddenly decides to drain it.
Where’s your investment? Gone, gone, gone. Welcome to HOA living.
I should charge money for psychic readings! It was four or five years ago that I began predicting the advent of drones and that they would eventually be cheap enough for the boards of Homeowners Associations to start using them to inspect the most private part of your property. Your nude sunbathing or hot tub trysts could be played on the TV set at the HOA clubhouse and you probably wouldn’t win a legal case.
Well, so far I’m batting about 90% so far. The drones are here. They cost as little a four hundred bucks. And they’re popping up in thousands and thousands of places. Realtors are using them to advertise homes and neighborhoods. Terrorists are using them to interfere with commercial aircraft. Voyeurs are using them to videotape you and your lover on the backyard blanket. The FAA only controls drones in airspace over 1000 feet.
Privacy? Fugeddaboutit!
There’ve been a number of cases where homeowners have shot drones out of the air. The shooters usually end up being arrested and jailed. But it’s a whole new area of developing law and will probably take a decade or more to resolve. In the meantime even if a jury finds you not guilty you will have expended hundreds of thousands of dollars on legal fees.
The blog I wrote about the Raintree Lake HOA in Lee’s Summit, Missouri on August 10th mentioned discussions of a GoFundMe account for the Stout family legal defense. They are standing up and fighting against the HOA to keep their daughters’ purple playset.
Sure enough, somebody took the bull by the horns and set it up. The donations are rolling in. And the comments from some of the donors are VERY interesting. Even a Realtor is making mention of people being afraid to buy in HOAs. How many times have we heard that before?
It’s so sickening to think all that money will go to fund the college funds of children of two HOA lawyers. Or maybe a second home in Breckenridge, Bozeman, or Bonaire. Or, possibly a yacht for the Lake of the Ozarks. No matter what the outcome of the lawsuit in the courtroom, the lawyers come out the winners. This is how the HOA legal game is played. Everybody loses except the lawyers. The pay off is determined by how long the lawyers can keep the battle raging.
When I sold yellow page advertising years ago, I had hundreds of attorneys as clients. When I asked what was the best case I could bring them they would tell me a nasty divorce. Naive me, I asked how do you know it’s a nasty divorce? With a chuckle from the attorneys I kept hearing, “you get them to call and we KNOW how to make it nasty!” Something tells me the days of the nasty divorces have been replaced with nasty HOA legal battles. Unfortunately, in that arena, I am not at all naive!
This one is huge, and it’s developing right now in Colorado.
A Homeowners Association in Vail is being sued because one of the supervisors in the management company was a jerk who was mistreating female Mexican workers. The Feds are now suing both the management company and the condo association.
I’ve owned two ski condos in that same area and I never had a clue who the management company was. I did get dinged a couple of times when I tried to change the locks on my doors. The management company bored through the locks, changed the door handle and charged me for their work. Yes, I was p.o.’d about that and it was one of the reasons I finally dumped the condos when the market improved.
But what if a federal EEOC sexual harassment lawsuit/judgment happened while I was still an owner? I could have been hit with a 10 to 50 thousand dollar special assessment for something I had zero knowledge about. Most Vail condos are owned by average people in Denver who just want to ski a week or two a year and rent them out the rest of the year to make the mortgage payments.
Incredible that completely innocent homeowners or condo owners could be financially ruined by this kind of thing.
