Risks of Social Media - Industry Follow Up

I frequently post comments received by readers along with responses on this site.  Today I received valuable information from a reader that I want to share with you as a separate posting:

I agree with Lisa that this is a large issue facing associations. We are overwhelmed with the Social Media revolution. As I have said in a number of posts in many blogs, this is a "blessing and a curse" for associations. As one of the largest writers of community association directors and officers liability nationwide, including the wonderful state of Florida which is probably warmer than our 11 degrees here in Cleveland today, the social media revolution is high on our radar. Since this is a new phenomena, the waters are still not tested. I am quite supportive of association websites and social media for associations and their authorized board members to disseminate information, but beyond that, social media is a trap for the unwary for most associations. We defend associations whether the allegations are frivolous, false or fraudulent. Accordingly, whether allegations by association members are true or not, there are huge concerns about "defamation", "invasion of privacy" and "harassment" that come to mind. Before an association sponsors or engages in social media, especially open forums, I recommend you set up an appointment with Lisa or your own association counsel and be educated on the potential  issues. You should also keep in mind that many association D&O policies expressly exclude claims for "defamation", "invasion of privacy", "discrimination" and "emotional distress" claims arising from these types of claims. Remember, we live in a great country that allows people to sue one another whether they have a legitimate claim or not.

Joel Meskin, Esq., CIRMS

The CIRMS designation is awarded by CAI to persons that demonstrate a high level of competency within the risk management profession.

Dispute Resolution Procedures for Condos & HOAs

How does your community address complaints?  Is there a published procedure or is every complaint handled differently?  Who has authority to handle the complaints?  HOA Leader recently published an article with tips for handling homeowner complaints.  Here is a link to one of the tips:

HOA Complaints:  Turn Owners' Frowns Upside Down

How many times have board members heard the following complaints and made the following responses:

1. The unit owner across the hall from me constantly cooks food that stinks up the entire hallway, can’t you do something about this? (Typical Board response: What stinks to you may be perfume to others, please be tolerant.)

2. I’m afraid of my next door neighbor’s large dog. I saw him lunge at another dog, and he’s always growling. I think he might attack another animal or a child. (Typical Board response: Dogs are expressly allowed by our documents. There’s nothing we can do.)

3. This is the third time I’ve complained about water intrusion into my apartment from upstairs. Why won’t you fix the problem ? (Typical Board response: The water is coming from the upstairs neighbor’s unit, not the common elements and, therefore, we aren’t responsible.)

4. One of the unit owners continually harasses me, and I can’t stand it anymore. Lately, every time I see him he shouts out derogatory racial slurs. It’s getting to the point that I can’t even stand living here. (Typical Board response: This is a problem between you and your neighbor; we can’t control what people believe.)

Did the board respond appropriately? Maybe yes, maybe no – it’s a matter of degree.

The first complaint is in the nature of a nuisance complaint. The owner claims that the neighbor’s use interferes with the peaceful possession and use his or her unit. Under this circumstance (or similar complaints regarding noise, music, etc.), the board has an obligation to determine whether the behavior actually constitutes a nuisance in violation of the documents. The board is put in the position of balancing competing interests and determining whether the use is reasonable versus whether the use creates an actual, material, physical discomfort to a person of average sensibilities.

The second complaint may deserve more attention. An association may be held liable for injuries resulting from a dog bite, if it is proven that the association had knowledge of the dog’s propensity for violent or aggressive behavior. Even when the association’s documents allow for pets, it may be entitled to an order removing the dog, if it becomes a nuisance.  I'll explain more about dangerous dog laws in another post.

The third complaint is heard often. Since the association has the duty to maintain, repair, protect and replace the common elements, it has the obligation to investigate the situation in order to ascertain the source of the water leak. If the water is leaking from the common elements, the association has an obligation to fix the problem. The association may have certain avenues available if a water leak from one unit results in damages to the common elements or other units. An “enforcement of maintenance” or other self-help remedy in the governing documents is extremely beneficial under these circumstances.  Note - I haven't mentioned insurance - that subject will be addressed in a future posting on this site.

Finally, “harassment” is very difficult to define and even more difficult to remedy. Nothing an association can do will turn people into nice or pleasant people. However, if the level of harassment rises to physical violence or unlawful discrimination, the association may be held liable. In Casa del Mar Condominium Association, Inc. v. Richartz, 641 So.2d 470 (Fla. 3rd DCA 1994), the Court held that an association has standing (authority) under Section 718.303, Florida Statutes, to seek an injunction against a unit owner to prevent future acts of physical violence, or threats of violence, against the association, its directors, employees and residents. Moreover, in at least one case, an association paid more than a half million dollars to settle a case in which an African-American unit owner claimed that the board did nothing to protect her from the racial and sexual slurs, derogatory comments and physical threats of another owner.

Association boards must be cognizant of the happenings in the community and take member complaints seriously to avoid liability.