Court Says Owners’ Claims of Damages Based on the Manager’s Neglect Are Against the HOA and Not the Manager

This case involved a dispute between property owners (“Owners”) and their homeowners association’s property manager (“Manager”) over the Manager’s liability for claims of negligence based on the Manager’s failure to send association notices to Owners regarding assessments owed by Owners.

Under the terms of the management agreement between Manager and the association, Manager was responsible for receiving notices from members on behalf of the association and for notifying members of increases in monthly assessments.  After having provided the Manager with their updated address information, Manager failed to send notices of assessment increases to Owners correct address. Although Owners continued to pay assessments based on the old rate, they were charged late fees and ultimately faced foreclosure proceedings by the association for non-payment of the increased amounts and the related additional charges.

Owners filed suit against: