Internal troubles at your association’s lawfirm?

A board president contacted me recently stating that the association attorney has just left his law firm and has apparently gone on his own. The association president cannot get the law firm to give him any information concerning the situation. The attorney himself says that the association should have the law firm turn over all of the files to him in his new office, and the board president simply wanted another lawyer’s advice.

Of course, such a situation depends upon the circumstances and whether one wishes to stay with the old law firm and/or go with the attorney who has left the firm. In any event, the case should be handled by someone who is competent to do so, and, the association should be apprised of the alternatives available to them in deciding which firm to utilize. The fact that there is apparently not a smooth turnover may be indicative of their need to look somewhere else.

I recently heard from an attorney who lives at a condominium association whose management company is impressed with a lawyer who gives them free legal advice and is encouraging the association to hire that lawyer. As an attorney, the co-owner was interested in my thoughts on the matter.

My comments were simply that you generally get what you pay for from an attorney in the form of legal advice. Too often Boards rely on attorneys for legal advice just because he or she may happen to be on their Board or live in their community. While it may be offered in good spirit, generally it is a bad idea because if the advice is not good or well thought out, the association is left with a potential claim against an attorney who resides in or who is otherwise involved in the operation of the association. As with any other professional, you should retain someone who is not affiliated with the community if you can possibly avoid it and retain an attorney to give you a legal opinion for which he or she is prepared to do the necessary research and analysis as a chargeable event, and having experience in the area of law from which you seek advice. In the last analysis, it is the board who will be deemed responsible for getting poor or no legal advice and it isn’t worth the risk as your insurance adviser will tell you.

Is furnance my responsibility or the association’s?

I recently heard from a senior citizen who lives in an apartment converted to a Condominium. Her carbon monoxide tester started beeping and she felt some dizziness. After contacting the management company asking that her furnace be checked for carbon monoxide fumes she received no contact in reply. She then contacted the gas company who stated she should call the Fire Department first. She was billed by the Fire Department for coming out and now she thinks it is the association’s responsibility to pay the bill.

My response to her situation was to ask whether the furnace is an area that is to be maintained by her or the association. If she is responsible for the furnace and the area in which it is, then it is her responsibility to ensure that it is safe. If it is the association’s responsibility, then it should defray the cost of fixing the furnace and determine the cause of the carbon monoxide. Just because something goes wrong with the unit, co-owners can not automatically assume that it is the association’s responsibility to fix the problem.

Can association treasurer bid on foreclosed units?

I recently heard from a co-owner where the treasurer of her association is a real estate agent and a property manager. The treasurer has been hired by the bank to handle units within the association that are in foreclosure, and, he has told some people that he intends to bid on some foreclosed units. Some board members believe that this is a conflict of interest because, as treasurer, he has information about units that other owners do not have.

I believe that as treasurer he has a fiduciary duty to give the association first priority as to whether or not to bid on these units. If the association is not interested in bidding on these units, then I do not see a problem in him doing so since the sale process is, presumably, a matter of public record and everyone is on at least constructive notice of it. However, when in doubt in such matters, get a legal opinion from your association attorney.