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DISCLOSURE OF LEGAL INVOICES

Legal invoices contain privileged and confidential information which is not subject to disclosure to the membership. 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).

Association Legal Expenses. Legal bills often contain sensitive information, privileged information and legal strategies. As such, it would harm the association's interests if the details were disclosed. Accordingly, it would be better to disclose fee totals.

Recommendation: Boards should consult legal counsel in the event a member were to request legal invoices and contracts for legal services.

ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.

Adams Stirling PLC