Legislation has been introduced to prohibit illicit demands of individual owners when boards hire attorneys.
Picture this: You’ve been a model condo owner for almost a decade now, always giving the benefit of the doubt to whatever board members hold the reins, even though you occasionally disagree with their decisions.
But this time, they’ve given you notice of their intent to install an obstructive shade on your porch, and your patience finally hits the skids. You show up at the next board meeting with a head full of steam, hell-bent on letting it rip about their announcement.
Although you come across as out-of-control and abusive to the board, actually you utter no obscenities, profanities or threats, just an honest justifiable protest to their announcement, which offered no opportunity to express objection.
A week later, you get a letter from the board’s attorney, demanding that you pay for legal services the directors claim was their only protection from your “outrageous, threatening” behavior.
You had no idea this was coming, and your first reaction is resistance and disbelief that the demand for payment of the $3,000-plus is real. At this time, you just don’t have the money to pay, so although it’s disturbing to let it ride, you put the letter and payment aside for another two weeks, while you write a letter to the board objecting to their unwarranted demands.
But three weeks later, you get another bill of $5,000 total, including the first amount plus late fees, and no response to your letter demanding justification for the bill. And onward and upward it goes, until or unless you pay the assessed amounts in full.
Not only does this phantom bill become unmanageable for you, but as a result, so do your regular maintenance dues.
‘Excessive Legal Bills’
The above scenario isn’t far-fetched at all, it is reality for condo owners in Hawaii as well as in other states.
Properties have been foreclosed on or seized as the result of what began as boards’ insistence on their justified response to “outrageous, threatening” behavior of owners who have every right to oppose, question or recall board directors, as the constitutional right of free speech allows.
Those targeted have no obligation to pay legal bills from board-hired attorneys, and boards have no right to what must be considered their bogus non-judicial “guilty” convictions of owners.
It is this writer’s conviction that it is overdue time that the brakes be slammed on runaway legal fees charged by attorneys boards hire — excessive legal bills that probably would not materialize if boards were, as the attorneys’ clients, rightfully responsible for paying these from their association funds.
Readers are strongly encouraged to support and its House bill counterpart , which have been introduced to prohibit illicit demands for legal fee charges to individual owners when boards hire attorneys.
Yet an exception for legal collection fees owners must pay when they are delinquent in maintenance dues payments protects associations and limits the fees to 25% of original delinquent amounts owed.
Those interested in supporting these timely measures may read the bills in their entirety at and contact the chairs and vice chairs of the Senate and House commerce and consumer protection and judiciary committees to urge scheduling public hearings for them.
If hearings are scheduled, testimony can be done in person or in writing at the website no later than 24 hours before hearings are scheduled.
Sign up for our FREE morning newsletter and face each day more informed.