SIGNING CONTRACTS WITHOUT AUTHORIZATION?

By Jan Bergemann

Published June 27, 2014

   

We always hear the stories about board members signing contracts without having been authorized by the vote of the full board in a public board meeting as required by Florida statutes. Often these are long-term -- or very high-priced – contracts, signed shortly before the term (election or recall) of this board member ends.

 

It’s pretty obvious that there can be only two reasons for signing these contracts: SPITE or KICKBACKS! Both these reasons can cost association members lots of money. As you have seen in Eric’s blog on Monday, the association may well be bound by the signature, even if the signature was totally unauthorized.

 

It’s especially disgusting if board presidents, who are being recalled – with a  certification by the Division Arbitration Section looming – bind the association to long-term CAM contracts – if the owners recalled the board for one reason: To get rid of this CAM company.

 

These board members (board presidents) often act so blatantly that there is no doubt about their motive: REVENGE!

 

And the reason these board members can get away with it: There is no clear law holding the board members liable for their actions. Our community association statutes still have no clear language punishing such board members for renegade actions that cost their neighbors lots of money.

 

I am pretty sure that these shenanigans would stop immediately, if these board members – signing contracts without authorization – would know that they will be personally held liable for the financial damages caused by them signing such contracts unauthorized.

 

In the moment the association can try to sue this board member for the financial damage caused by his/her actions, but the ruling in such a lawsuit can go both ways, if the association doesn’t have irrevocable proof that the board members acted willfully with bad intent!

 

We need language added to the Florida statutes holding such renegade board members can be held personally liable for such action!

 

Believe me: Many of these board members would think twice before signing unauthorized contracts in the future if such language would be included in the statutes!


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Jan Bergemann Jan Bergemann is president of Cyber Citizens For Justice, Florida 's largest state-wide property owners' advocacy group. CCFJ works on legislation to help owners living in community  

associations. He moved to Florida in 1995 - hoping to retire. He moved into a HOA, where the developer cheated the homeowners and used the association dues for his own purposes. End of retirement!

 

CCFJ was born in the year 2000, when some owners met in Tallahassee - finding out that power is only in numbers. Bergemann was a member of Governor Jeb Bush's HOA Task force in 2003/2004.

 

The organization has two websites to inform interested Florida homeowners and condo owners:

News Website: http://www.ccfj.net/.

Educational Website: http://www.ccfjfoundation.net/.

   
We think that only owners can really represent owners, since all service providers surely have a different interest! We are trying to create owner-friendly laws, but the best laws are useless without enforcement. And enforcement is totally lacking in Florida !


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