Disclosing Information about Litigation to Association Members

A common issue that is addressed in homeowners associations concerns the duty of an association’s board of directors to disclose information about existing and threatened lawsuits that involve the association to members of the association. Some treat information concerning lawsuits as “confidential” information that members are not entitled to, and other associations believe that lawsuits involving the association constitute material information that all homeowners are entitled to be aware of. When it comes to the disclosure of information concerning litigation to association members, there are some basic considerations that the association’s directors should be aware of.

Transparency has its Limitations

When it comes to the disclosure of information about threatened or actual litigation[…]