February 29, 2024

Court of Appeals Resolves Dispute Between Competing Community Association Boards

There was recently litigation to determine which of two competing boards of directors of a community association had the right to access the association’s bank accounts. One of the litigants originally served on the association’s board as an appointed director and president. He and the other eight appointed directors failed to hold a timely election as required by the association’s bylaws. A small group of community members formed an election committee and collected signatures from 70 percent of the association’s members demanding that the board hold an election. The appointed board refused to hold an election, so the election committee organized and held a special election. The association’s members ultimately removed seven of the eight appointed directors and elected a new board. The original president contested the election. The trial court granted summary judgment in favor of the association. The original president then appealed that summary judgment, but it was upheld on appeal and he was ordered to pay the association’s appellate attorney fees.