Georgia Ct. Removes HOA President for Mismanagement and Appoints Receiver to Take Charge of HOA

Supreme Court of Georgia decision (February 6, 2017).

This case involved a dispute between an individual who had served as a director and the president of an HOA (“Association”) for several years dating back to 2011. In 2012, several homeowners got together and filed a lawsuit against the president and other directors seeking to remove him from his positions as president and a director due to alleged mismanagement of the Association including the conversion of Association funds. The homeowners contended that the president wrongfully caused the Association to enter into a contract with a payroll company owned by the president’s wife and a landscape company that was owned by his stepson to the detriment of the Association.