Friday, August 31, 2012

State files lawsuit against three board members of The Harbours

State files lawsuit against three board members of The Harbours Recent Local News News and Tribune: The Indiana Attorney General’s Office filed the complaint in Clark County Circuit Court No. 2 against board members Kevin Zipperle, Mary Lou Trautwein-Lamkin and Sharon Chandler, according to a press release from the office. Frank Prell is also named in the lawsuit as a former owner of multiple condominium units at The Harbours, which is located at 1 River Point Plaza.

“Today’s lawsuit is the first of its kind under a new state law allowing the Attorney General’s Office to regulate homeowner associations,” said Gabrielle Owens, director of the Homeowner Protection Unit and Licensing Enforcement Unit of the Indiana Attorney General’s Office. “Board members have a fiduciary duty to serve in the interest of those they represent. Our office is committed to protecting homeowners and will continue to bring actions against violators who misuse their positions for personal gain.”

A state law passed in 2011 allows the Attorney General’s Office to regulate homeowners associations similar to other nonprofit organizations. The office has the authority to bring actions against a homeowner association’s board of directors and in some cases, against association board members.
California and other state AGs already have oversight authority over HOA corporations in their role as regulators of nonprofit corporations.  But they have historically relegated complaints against HOA corporations to the bottom of the inbox citing lack of resources.

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