APPOINTMENT OF A RECEIVER

QUESTION. If the board refuses to spend an money on building maintenance and the place is becoming a slum. Can the court appoint someone to manage the building?

ANSWER. Courts are reluctant to get involved in managing an association. However, if circumstances warrant courts can either (i) order the board to make repairs, which the judge can enforce through contempt proceedings if the board refuses, or (ii) appoint a "receiver" to oversee the property as provided for in Section 564 of the Code of Civil Procedure.

In either event, owners would need to pay out of pocket for a lawyer to file suit against the board. In the event they are successful, they could recoup their legal fees but there are no guarantees. The better solution is to elect more responsible directors.

Updated 10/15/2007

 
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