Court Says HOA Member has Right to Criticize HOA

This case involved a dispute between a homeowners association (“Association”) and a homeowner member (“Owner”) over:

(i) The imposition of fines against Owner for the purpose of penalizing him for expressing his opinions about Association’s management practices;

(ii) Claims by Owner that Association had violated applicable state statutes by denying Owner a copy of a tape recording of the meeting at which Association’s board of directors considered the imposition of the fines against Owner;

(iii) Further claims on the part of Owner that Association’s board members breached their fiduciary duties owed to Owner by refusing to provide him with the opportunity to review the evidence that allegedly was the basis for the claims brought against him that resulted in the imposition of the fines.

The basis for Association bringing disciplining proceedings against Owner stemmed from claims by Association employees that Owner yelled profanities at the employees and engaged in conduct towards them that was characterized as “rude and disrespectful.” Based on the complaints from the employees, Association notified Owner that his conduct towards the employees was in violation of Association’s governing documents which prohibit “obnoxious or offensive activity from being carried on in any unit or in the common elements.”

After receiving Association’s notice, Owner requested a hearing before Association’s board of directors, which was subsequently held. Owner attended the hearing with his attorney. At the hearing, Owner’s attorney asked to review “all underlying evidence, information, and/or documents relating to the allegations” against Owner. After Association’s board denied the request of Owner’s attorney, the attorney sent Association’s attorney a letter in which he formally demanded a copy of the video and audio tape recording of the hearing and the evidence against Owner. Association did not comply with the demand and proceeded to impose penalties in the form of fines against Owner for his violations of Association’s governing documents. Owner paid the fines and then filed suit against Association and the board members.