1/3/2024 0 Comments Poa vs hoaThe attorney will advise board members and POA staff that are called to give testimony on the best approach to take to potential questions that are asked during discovery. Following the guidance of the POA’s legal counsel is crucial during these steps. These lawsuits will often involve lengthy depositions from POA staff, board members and other concerned parties. Lawsuits involving vendors or association amenities, such as the pool, playground, landscaping and maintenance can be more complicated. A board member communicating with a party involved against the POA could place the POA and individual board member’s indemnification at risk, in addition to potentially having a detrimental impact on the POA’s case. The attorney will assist in guiding the POA on the best approach to the lawsuit.Ī helpful tip to remember, no matter what the lawsuit involves, once it is filed, all communication between parties should go through each party’s attorney. Depending on the carrier, the POA may request to continue using the POA’s general counsel if that law firm is not assigned to the case. If a claim is filed using the POA’s insurance policy(s), the insurance carrier will assign an attorney to the matter (assuming the claim is picked up by the carrier). If a vendor is also involved in the lawsuit, the vendor’s policies may take precedent over the POA’s and provide further indemnity for the POA.Īfter determining the applicability of the insurance policies, the POA should begin working with their legal counsel. Depending on the particulars of the lawsuit, this may be covered by the POA’s general liability, directors and officers, employer liability, or other policy or multiples of these policies. In the event a lawsuit is filed against the POA, the POA should work with their general counsel, community manager and insurance professional to determine if one of the POA’s insurance policies or a vendor’s policy (should the circumstances arise that a vendor becomes involved) will indemnify the POA during the lawsuit. No matter which side of a lawsuit the POA falls on, there are steps the POA will have to take to ensure that it is prepared for every phase of the legal process ahead. It has now become almost inevitable that a POA will be involved in a lawsuit either as the plaintiff or defendant. The continued growth of property owners associations (POA) and further state statutes allowing for action from both the association and the homeowners is leading to increased legal action in the courts from both parties.
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