The following thread was originally posted as a Comment under "Questions to Attorneys for Plaintiffs." A slightly modified version of that comment is posted here as a new thread at the request of attorneys Weiss and Garrity. ~The Bolg Team
First, let me start by expressing my thanks to the monitors of this blog and all of the Ocean Manor Owners who have started to see how little information this Board has chosen to dole out.
How are you advising your clients? Should they pay the double assessments?
My advice to my clients must remain as advice to my clients. This is to ensure that my clients’ attorney client privilege is maintained. However, I can say this generally; the most common method of funding special projects is through the use of special assessments. The first step is to review the Declaration of Condominium, Articles of Incorp oration and By-Laws ("Condominium Documents"). The Condominium Act states that special assessments must be levied as provided in the Condominium Documents. Assuming that the Board can levy special assessments, the notice of the special assessment meeting is governed by very specific notice procedures, found at Section 718.112(2)(c) of the Condominium Act. Generally speaking, the notice of the Board meeting where the special assessment will be considered must be mailed to each unit owner at least 14 days in advance of the Board meeting, and also posted at a conspicuous place in the Condominium, designated by Board rule. The notice must state that a special assessment will be considered, and the nature of the special assessment. When the Board meets and levies the special assessment, the assessment should be set at a fixed amount. The Board must then send out a second notice, this one being required by Section 718.116(10) of the Condominium Act. Essentially, this notice must notify the owners that a special assessment has been levied, the purpose of the special assessment, and the due dates. The problem with the meeting that I attended is that there was no specific amount ever defined=2 0by the Board as being needed. It was like most of the assessments levied by this Board a vague number that may address the General Bronze lien but there was nothing to substantiate the amount of the assessment.
Should they put the money in escrow?
If you choose not to pay the assessment the Board can direct their counsel to place a lien on your unit and attempt foreclosure. Several of my clients are facing that fate at this point. However, my clients never wanted to receive free windows. My clients want the Board to act in the manner proscribed by Florida law and your Condominium documents. They chose not to.
Should you escrow the money?
Only if you are committed to making this Board play by the rules and are aware that there are consequences for your action that you are willing to fight over.
What are our rights as homeowners?
You have the right to see everything that your Board sees when it made its decision to levy the assessments. You should be able to see financials, quotes, balance sheets, agreements and anything else that would allow you to come to the same conclusion as the Board. Has anyone been provided the type of information to know that your money is being watched over in a fair and just manner? If not you should try to get the information necessary to be a part of the decision and not someone lead down a primrose path.
Liens have been threatened, is it possible for the board to foreclose on our property?
Yes, if you challenge the Boards authority then they will try to foreclose on you. It is their hammer. However, the alternative is to allow the behavior to continue and go unchecked. When will it be too much for you to take? That is a personal question that each of you must answer.
How can we use the Florida system that is supposed to monitor condominium rules to our advantage?
My20clients have already started the process and if you support their efforts to get some accountability from the Board then you should join them or start your own efforts to get information you are entitled to in order to determine if your money is being used wisely, wasted or worse than that.
Is it true that your clients are getting free windows?
No. My clients are only interested in getting the Board to act appropriately with full disclosure. They are not in this suit for free windows. When is the lawsuit scheduled to go before the judge?
We are not currently set for trial on the main suit. We are however moving forward on as many fronts as possible to make this Board comply with basic requirements. We have recently filed a complaint with the State of Florida detailing the lack of financial accountability. The Board continues to paint my clients as rouge clients who are only interested in not paying for their windows but nothing is further from the truth. You all have seen firsthand how OM is being governed. There is no accountability for funds received or spent. No one has answered basic questions about money paid directly to Board members.
Would other owners benefit by joining the lawsuit?
Yes. There is strength in numbers. If members of this association stand up united against this Board there will be a change. You will start to understand what money is coming in and what money is going out. We will get the attention of the State and of the Court if more members of the Association join in questioning the Boards activities. All we are looking for is the ability to understand what is happening with the Association’s money. We would like to make sure that it is not being spent to the benefit of Board members while unit owners keep digging deeper and deeper into their pockets. At the meeting it was disclosed that OM pays the highest per square foot assessments on the Galt. That does not even include special assessments. Obviously a building like OM needs up keep. But does it need a monstrosity of a balcony added to the top of it without anyone knowing how it was done or who paid for it? Many questions remain unanswered. Hopefully, more members can force answers out of the Board that everyone is entitled to at OM.
Assuming it is possible how would one proceed to join?
It is always possible to join and you simply need to contact Joe Garrity at jgarrity@qbc-law.com or Suzanne Weiss at sweiss@weissfranchiselaw.com and we would be happy to meet with any of you.
What is the cost to join?
Please call to discuss issues of cost. However, I am not charging an hourly fee for representation of my clients in the main case. We are=2 0requesting cost deposits of $2,500.00 per client and money will be held in trust and used for cost only. There will be no hourly fee for the work as we are currently working on a contingency fee arrangement.
How can the owners force a new election for Board of Directors?
There are specific procedures for the removal of a current Board and demanding the election of a new Board. We would be happy to discuss these procedures with anyone who contacts us.
Posted by
Suzanne Weiss &
Joseph D. Garrity
Attorneys for Plaintiffs
against OM - Board of Directors
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Thank God for the lawsuit!!
ReplyDeleteIf it was not for the lawsuit I am sure we would see even more assessements and more abuse of comon area!!The board has a brass pair!!!Look what they did with the privavate penthouse balconies!!!
The board is on their best behavor now because of the lawsuit(and I must say they are still abusing their power)They sill have not provided auidit reports,and they spent all the money and need more money in double assessements
"requesting cost deposits of $2,500.00 per client and money will be held in trust and used for cost only"
ReplyDeleteBeside the Forensic Accountant, what other expenses can we expect?
Will we be able to use evidence gathered for the reciever case in the coming case?
The case for a reciever seemed very strong, it is much stronger now, would we attempt to retry that case?
Is the Board still using association funds to pay for their defense?
Will the association be able to recover the monies paid for their defense when illegal actions are found?
Response from Joseph D. Garrity
ReplyDeleteIt is impossible to tell how much money will be required to complete a forensic accounting. However, we expect that it will be considerable considering there is little to work from. Other than the forensic accounting there may be a need to involve other experts to handle this matter. For example it may become necessary to have an expert review the construction that has taken place at the OM to determine if it complies with code and to insure that the structural integrity of the OM has not been compromised. All of these decisions would be made by the collective group of clients prior to any expense being incurred.
If there is enough interest in joining the lawsuit then it is reasonable to believe that the initial cost retainer will cover everything needed to present the case. However, the fewer the members of the Plaintiffs party the more likely that additional funds will be needed.
Thank you for your continued questions and I remain available to discuss these issues. Please call my office at 954 522-2983 to arrange a free consultation.
Investment Dictionary: Embezzlement
ReplyDeleteA form of white-collar crime where a person misappropriates the assets entrusted to him or her. In this type of fraud the assets are attained lawfully and the embezzler has the right to possess them, but the assets are then used for unintended purposes. Embezzlement is a breach of the fiduciary responsibilities placed upon a person.
Investopedia Says:
The nature of embezzlement can be both small and large. Embezzling funds can be as minor as a store clerk pocketing a few bucks from a cash register; however, on a grander scale, embezzlement also occurs when the executives of large companies falsely expense millions of dollars, transferring the funds into personal accounts. Depending on the scale of the crime, embezzlement may be punishable by large fines and time in jail.