D. Klein has a very good point. It doesn't matter how
much insurance you have and how good your procedures
are, any one can sue you for anything at anytime.
Even though they may not win, a neighborhood
association could potential spend thousands of dollars
on legal fees just defending themselves.
It has happened. I know of a neighborhood who had a
couple frivolous law suits filed against them. Even
though after nearly five years, the cases were
dismissed as frivolous, it cost the neighborhood
$56,000 in legal fees to defend it. That was over and
above the coverage from their D & O policy. I do not
know what their D & O policy looked like when that was
happening, it was not the policy negotiated by NRP for
neighborhoods. The issues involved in the suit were
completely separate from anything NRP related.
That is why it is extremely important to have
qualified reasonable people as members of the
personnel committee within each neighborhood
association. It is also important to have policies
and procedures in place within the office that are
adhered to when making decisions about staff. It is
also important to conduct business in a manner that is
fair, open to all who choose to participate, and is
well documented. It also helps to have an attorney on
your board. (Just a little humor here)
Even the smallest infractions can come to bite you in
court when the opposing attorney gets ahold of it.
Barb Lickness
Whittier
Ward 6
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