NO RIGHT TO INSPECT LEGAL INVOICES

Owners do not have the right to inspect individual invoices from the association's attorney since they frequently contain privileged information which is not subject to disclosure to the membership. Instead, invoices are reviewed by the board. As the court in the Laguna Sur case noted:

It is no secret that crowds cannot keep them [secrets]. Unlike directors, the residents owed no fiduciary duties to one another and may have been willing to waive or breach the attorney-client privilege for reasons unrelated to the best interests of the association. . . . "[o]ne can only imagine the sleepless nights an attorney and the Board of Directors may incur if privileged information is placed in the hands of hundreds of homeowners who may not all have the same goals in mind." Smith v. Laguna Sur Community Assn.

Disclosing Expenses. However, members do have the right to know how much money is being spent on legal matters. Legal expenses should be disclosed in monthly financial statements and made available to members upon demand.

See inspection of records menu to your left.

Updated by ADAMS KESSLER 8/21/2007