CONDO ARBITRATION CASE FLIPSBOARD MEETINGS UPSIDE DOWN

Almost every Board meeting is handled the same way, whether it’s a condo Board meeting or HOA. There is an agenda prepared with a bunch of things for the Board to vote on.  Near the end there of the agenda is a section called “Unit Owner Comments” or “Good and Welfare.”

       In other words the agendas are set up to allow the Board to take care of their business and vote on matters and motions without unit owner or homeowner interruption.  After everything has been voted on, the owners get a chance to let the Board members know what they feel about the things they already voted on, even though it’s already a done deal.

       Well, in the condo arbitration case of STANLEY GREENBERG v. ASSOCIATION OF WOODSIDE VILLAGE EAST, INC., Case No. 23-00-0616 July 17, 2023, that’s the exact procedure the Board of Directors was using for their Board meetings.  The Board voted and the owners spoke at the end of the meeting.  In arbitration, the Association asserted that its obligation under Florda Statute 718.112(2)(c) is to allow an Owner to speak, but that the statute does not impose a specific time. The Board agreed that owners are permitted to speak at meetings but their policy is that members are allowed to speak at the end of the Board meeting after the Board has voted.

The Arbitrator held that:

1.  condominium unit owners have the right to speak at meetings of the board of directors with respect to items that have been placed on the agenda for the meeting.  

2.  The Association's policy of only allowing owners to speak at the end of the Board Meeting after the vote has occurred is not reasonable.

3.  The obvious purpose of the law is to allow owners to voice their opinion on issues being considered by the Board, which is elected by, and is representing the owners.

4.  If the board is going to exercise sound business judgment, it needs to be informed, and part of this information gathering is hearing from the owners.

5.  There is no benefit in the Board granting owners the right to speak after the vote has concluded. The board should allow owner comments before the board votes on an issue, otherwise the purpose of the law is not accomplished.

6.  The Association's policy of placing owner comment at the end of the meeting violates the obvious intent of the law, which is to allow owners to express their opinions on matters prior to the board acting.

Make no mistake, this is a major ruling.  This fundamentally changes the way meetings will be held.  For those on the Board, you may not be too happy as meetings will no doubt be longer.  Fo unit owners or home owners who believe their voices were being ignored, you’re very happy.

This ruling occurred in a condominium case.  The HOA statute however is very similar to the condo statute at issue in the above case and reads:

Members have the right to attend all meetings of the board. The right to attend such meetings includes the right to speak at such meetings with reference to all designated items.

This type of case in an HOA would need to start at presuit mediation.  It can then either go to arbitration or court.  Well, we know how an arbitrator would rule.  I certainly believe a judge would rule the same way.

Watch our recent episode of Condo Craze and HOAs on YouTube for more!