Tuesday, March 06, 2018

Homeowners facing $20 million jury verdict over swing set that left boy disabled demand answers from Lamplight Village HOA - KTNV.com Las Vegas

Homeowners facing $20 million jury verdict over swing set that left boy disabled demand answers from Lamplight Village HOA - KTNV.com Las Vegas:

The association turned down a policy limits demand of $2 million and then lost the trial and got hit with a $20 million verdict. Guess who is liable to pay the debts of the association, including massive verdicts like this? The owners. And of course everybody is shocked to discover that this the way things work in a common interest community. I've been talking about this liability problem for a long time now, but every time it happens, people act surprised. 

1 comment:

IC_deLight said...

Who really turned down the $2 million? The insurer? The HOA attorney? The board? Who made that decision?

Think it is time also to look at connections between the management company and the insurer. Did the HOA corporation have its own policy or was it one of those where they THOUGHT they had their own policy but were really paying premiums for coverage under the management company-owned policy. The problem with these is who is making the decisions - the insurer or the management company? Almost certainly not the board.

There is really no upside to HOA-burdened property.