Support HB 4919 – Board Enforcement Powers
When drafting original governing documents such as Articles of Incorporation and Bylaws, condominium developers and their attorneys follow a common practice of including a requirement that at least 2/3 of the association members must vote to approve any commencement of litigation against the developer. Usually, a strict formal process for obtaining approval is prescribed which can serve as a basis for a developer to object if not followed to the letter. Some governing documents may require the 2/3 approval before any kind of litigation may be commenced. The controversial 2014 Michigan Court of Appeals decision, Tuscany Grove Association v. Gasperoni, confirmed that the plain language of such a provision controls over the board’s authority to enforce the governing documents on behalf of the association, in this case with respect to an architectural improvement violation of the Bylaws. The case was dismissed due to lack of the 2/3 approval, without regard to the merits of the underlying claim. Read the article…………….