Update 1: Homeowner's lawsuit
Two homeowners are on either side of a bodily injury lawsuit regarding an incident that occurred in March of 2019.
The plaintiff alleges that they were injured shooing the defendants small dog off of their patio. The plaintiff is seeking monetary compensation of $50,000.
The Association was later named in the lawsuit. The defendant was an officer of the Association's board at the time of the incident. The compliant against the HOA is that the defendant, in his role as a board member, misrepresented the community rules and did not take disciplinary action against himself after the incident.
How would the Association pay in the event a judgement is rendered against it?
The Association has directors and officers (D&O) liability insurance with CNA and a commercial general lines policy (CGL) with Nationwide which are in place to cover legal fees and shield the owners from financial risk of lawsuits of this nature. Both insurers have hired attorneys to defend the HOA portion of the suit. The deductible is $1,000. The HOA has a $150,000 emergency fund to cover uninsured loss claims which will easily cover the deducible.
Shelly S. Jock from the Law Office of James A. Lawrence is representing the Association under Nationwide's CGL policy. Clayton Hearn of Roberts Markel Weinberg Butler Hailey PC. is representing the Association under CNA's D&O policy.
The defendant is no longer on the board or a property owner in the community.
The board is disclosing this information because it impacts all owners.
The trial is set for June 29, 2020. All articles on this subject are located here.
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