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Does anyone have any info on the liability situation for the Orchidland Board of Directors? As a property owner, I received a ballot for/against a special assessment to buy liability insurance for the Board members, since they can't get insurance elsewhere. They talk about the Board resigning if there is no liability insurance & the Association falling into receivership, but no one seems to know what that means. It's difficult to make an informed choice w/o all the facts. John R, do you know?
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The BOD should have liability insurance, however the premium should be very low for an association which is basically inactive, have no dues and have no CC&Rs. The special assessment should be only a few bucks with the number of lots involved.
I don't know the Bylaws of the subdivision, but if it requires an operational Board and there is none, a Judge would appoint somebody to act on behalf of the BOD. That would cost more money to the property owners than the premium of the liability insurance.
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
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Thanks for the feedback John. They are wanting a $50. per property per year for a "legal contingency fund for the defense & indemnification of directors, officers & agents of the corporation". They have had 2 brokers search for a D & O policy w/ "better coverage". The BOD is in current lawsuit litigation according to my notice. Somehow, something about this doesn't seem right to me. Are there any other Orchidland people out there interested in this?
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$50 per year per lot?! Seems like a bigger scam than the recent one on Wall Street. You might want to call Brown & Brown of CA, Inc. at 800.280.7250. They do E&O Insurance for real estate companies and home owner associations, and they are very reasonable!
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
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If you go to some of the meetings you might get more answers. The letter to the owners before this last letter strongly asked all of us to attend the meeting to discuss this matter, we never go, but this was important enough to us to make us go to this last one, but as usual hardly anyone showed up. Basically, this issue has to do with not being able to get insurance to not exclude the people suing Orchidland, it's Board of Directors, and lot owners. They do have liability insurance, but when it was renewed they were unable to find any company that would not exclude these people with the previous lawsuits, which leaves the board of directors open to direct lawsuits by these people. In your paper you received it tells you when the next meeting is to discuss this if you have questions, January 17th, 2009 at HPP Community Center, 8:30 am sign in. You can read about most of this and the lawsuits at www.orchidland.org to be a bit more informed before the meeting. I urge you to go and see what is happening. It was an eye opener for us and is not at all some kind of scam.
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Seaview's liability insurance cost us $6400. per.year. This covers 2 community parks. We 933 lots. Our dues are $25.00.
Wyatt
"Yearn to understand first and to be understood second."
-- Beca Lewis Allen
"Yearn to understand first and to be understood second."
-- Beca Lewis Allen
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Does it cover the private roads too?
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
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The $50 annual would be a special assessment only for the "legal contingency fund". We get a road maintenance assessment of $65 + $100 paving yearly. I do plan on attending the Jan. 17th meeting. I read the history on this litigation on the OL website & it seems questionable/shady from the get go. We owners appear to be the one's left holding the bag.
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i don't live there so this is pure curiosity - if a receiver ( is that the right word ) was appointed wouldn't that eliminate the whole liability issue since the receiver would be an officer of the court??
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The Orchidland association is the OWNERS. The Board of Directors are owners in Orchidland. These lawsuits are being put forth against the Association (owners) and the Board of Directors, (also owners) who are volunteers. Would anyone want to hold a position in which a couple of disgruntled owners are able to sue you directly, and you have no liability insurance against them. That is what the fund is for, is to have some money in the bank in case these guys file more lawsuits. Personally I think we as the owners should be doing some counter suing against these stupid guys that keep the association in a turmoil with there petty lawsuits, which is where so much of our much needed road fees have gone for the last two years, in paying the deductable on our liability insurance. As far as a receiver goes, they would need to be paid for there services as well. It is just so frustrating that a handful of people can cause such a mess, and they just keep doing it, and the owners have to keep paying to answer the lawsuits that they keep generating.
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