Monday, September 14, 2009

Clipper Estates lawsuit dismissed by federal judge - Louisiana Politics | State Legislature News -

Clipper Estates lawsuit dismissed by federal judge - Louisiana Politics | State Legislature News - "A federal judge has dismissed a lawsuit filed by nearly 50 people who live in Clipper Estates near Slidell, saying the residents couldn't sue the man who developed their subdivision and runs its homeowners association for violations under the RICO Act.

U.S. District Court Judge Martin L. C. Feldman issued the ruling Friday, saying the residents did not have standing to sue under the Racketeering Influenced and Corrupt Organizations Act because their purported injuries are not distinct from those allegedly suffered by the Clipper Estates Master Homeowners Association, said Kyle Schonekas, an attorney representing one of the defendants in the case."

This issue comes up sometimes where a group of owners wants to bring their own action, either because the HOA isn't suing or isn't handling the case the way the owners' group thinks it should.

1 comment:

Anonymous said...

The bottom line is that HOAs NEVER represent the homeowners. The HOA represents at best only the interests of the majority controlling interest of the board, period. As indicated in the article, the "homeowners" association is controlled by the developer, not the homeowners.

The question is why is the HOA being equated to the homeowners? At best the HOA is a private person and is a separate legal entity from the homeowners. Any remedy that the homeowners have goes to the homeowners. Any remedy that the HOA has goes only to the HOA - NOT the homeowners.

The judge has it wrong and it is pretty apparent that all the developer has to do is stay in control in perpetuity to ensure immunity from wrongdoing. So much for the alleged "democracy" in HOAs. The judge has made TWO mistakes: one is failing to distinguish the homeowners from the HOA; two is presuming that the "decision of the HOA" to not pursue a claim should trump any homeowner's right to seek relief. Gee, the board decided not to consider using the HOA to pursue the board members for RICO violations.