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  1. #1
    Join Date
    Apr 2007
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    2

    Default HOA Rules For Initiating Litigation

    Our HOA decided to bring a lawsuit against our insurance company. They felt the insurance company owed us millions of dollars for claims from the hurricanes of 2004.
    I was reading the FL statutes and was wondering if someone could interpret this for me. I would like to make sure I'm interpreting it correctly.
    In section 720.303 Powers and Duties it states............."Before commencing litigation against any party in the name of the association involving amounts in controversy in excess of $100,000, the association must obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained."
    Does this mean the association should have been able to vote on whether to carry out this lawsuit? Thank you.

  2. #2
    Join Date
    Jul 2006
    Posts
    5,438

    Default Re: HOA question

    Q: In section 720.303 Powers and Duties it states............."Before commencing litigation against any party in the name of the association involving amounts in controversy in excess of $100,000, the association must obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained."

    A: This means that before commencing litigation against any party in the name of the association involving amounts in controversy in excess of $100,000, the association must obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained.


    Q: Does this mean the association should have been able to vote on whether to carry out this lawsuit?

    A: This means that before commencing litigation against any party in the name of the association involving amounts in controversy in excess of $100,000, the association must obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained.

  3. #3
    Join Date
    Apr 2007
    Posts
    2

    Default Re: HOA Rules For Initiating Litigation

    Thanks. That makes it much clearer.
    I wanted to make sure the "voting interest" was the association, not the board and a quorum of the association, not the board, was needed before this action was taken. That is how I interpret it.

  4. #4
    Join Date
    Jul 2006
    Posts
    5,438

    Default Re: HOA Rules For Initiating Litigation

    Q: I wanted to make sure the "voting interest" was the association, not the board and a quorum of the association, not the board, was needed before this action was taken. That is how I interpret it.

    A: This is a different question than your first two. Now, I will tell you to look in the governing documents of the association for the answers. Then you tell us what is in there.

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