Tallahassee homeowners association files for bankruptcy | tallahassee.com | Tallahassee Democrat: "The homeowners association of an upscale Tallahassee neighborhood has filed for bankruptcy to get out of paying lawyers’ fees after losing a lawsuit against two of its members, a lawyer for the couple said."
-------------
Nice try, but the association's members can't get out of paying the judgment brought upon them by their elected leadership's bad decision to sue the members. Bankruptcy of the association just means that, if necessary, the judge will appoint a receiver to impose a special assessment on the owners, secured by a lien on their units, which will be sold to pay the assessment if necessary.
This little bankruptcy maneuver has been tried before by associations that lost lawsuits. No dice.
Thanks to Fred Pilot for this link.
1 comment:
I was wondering about that. If bankruptcy would discharge the atty fees, then CIDs would get to file one free ridiculous lawsuit every 10 years or whatever the period is. I wonder who was advising this board? Were they that certain of victory that they didn't consider the costs of losing?
Post a Comment