WHO CAN GET DISCIPLINED AND WHY?

By Eric Glazer, Esq.

Published October 28, 2013

            Let's pretend that we're taking a law school exam today.  I'll give the fact pattern and look for the answers from you.

            Facts: The Cheatem Blind Condominium needs a new roof.  With no vote of its Board, directors Sam Shyster and Carlos Crook execute a contract with Carlos' own roofing company.  The condominium attorney, David Disbarred was paid by Carlos to give the association an attorney's letter which states that the Board can do business with Carlos' roof company.

            The condominium is totally broke.  They don't have the $200,000 necessary for the new roof, so a special assessment is necessary. Cam Weasel, the community association manager tells the association that they can pass the special assessment at a meeting, as long as there is 48 hour notice of the meeting that is posted in a conspicuous place on the condominium property.  Of course, he knows that 14 day notice is required, but doesn't want to drag this situation out for another 2 weeks.

            At the meeting, the community is in an uproar.  They can't believe that the association is doing business with Carlos' roofing company.  Carlos hasn't even paid his assessments in 8 months and owes the association thousands.  It gets worse…..Sam Shyster is due to receive a kick back from Carlos should Carlos get the condo roofing contract.

            At the special assessment meeting, David Disbarred tries to calm the crowd by ensuring everyone that he has reviewed the contract and made sure the terms are in the best interest of the association.  David is also currently defending Carlos' roofing company in a lawsuit by the Soaking Wet Condominium just a few doors down.  They hired Carlos to put their roof in about a year ago, but Carlos botched the job, causing tens of thousands of dollars in damage to the common areas. David has not revealed this representation to anyone.    At the special assessment meeting, 2 other directors were unable to appear.  They gave their proxies to Carlos with the specific instruction of voting in favor of passage of the special assessment.  Cam Weasel, the manager, thought this was a good idea and instructed the Board to count their votes.

            The roof fails after about one month.  The Board complains to David Disbarred who immediately files suit on behalf of the association against Carlos and his roof company.

            So……..who is getting in trouble, with whom, and why?  Are each likely to be subject to any discipline?  Does this story sound impossible in your association or …is it a typical Thursday?