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WILDFIRES AND THEIR IMPACT
ON INSURANCE
 Thank you to the 1,600 individuals who signed up for our webinar. Michael Berg, Terri Guest, and I had a good discussion on the state of the insurance market in light of the devastating LA wildfires.
In addition, we discussed amending the insurance provisions in CC&Rs to give boards more flexibility when insurance is not available or too expensive. We covered the potential liability boards face and when to use special assessments. The importance of the Damage & Destruction provisions in CC&Rs was discussed and the need to review and possibly update them.
We answered attendee questions but could not get to all of them in the allotted time. We will record another session to cover the questions and post it. We will let everyone know once it's done.
For those who missed the webinar, we recorded it. You can watch it here:
 Wildfire Devastation & Insurance Fallout
WEBINAR FEEDBACK
Thank you for providing this presentation discussion! –James W.
Thank you so much for hosting the Wildfire Devastation and Insurance Fallout seminar—so very informative and in easy to understand language. Everyone involved did a great job. Again, thank you so much for providing this incredible session. –Donna G.
Thank you so much –Gregg O.
Just talked to GM a large association. He said he loved the wildfire webinar and got a lot of great information from it. He wanted me to pass along his appreciation and thank Adrian and the firm for putting on the event. -Melissa W.
Thanks so much, and a BIG appreciation to your firm and the others on the panel. –Cheryl A.
CORPORATE TRANSPARENCY
FEEDBACK
 You people and your information are really fantastic. Thank you for all you do for our community. Keep keeping us informed in this matter is priceless. Thanks again. –Robby M.
Anybody else going to file a personal injury suit for the CTA whiplash? –Trish
It's perverse. This newsletter is so well-written that I have kept my subscription though I've not lived in California for six years nor owned a condo for over ten. At this distance I'm able just to shake my head and laugh out loud. Thanks. -Bill D.
RESPONSE: Smile.
Great news! I appreciate your newsletter so much. You stay on top of things and keep us informed.- Maureen
My HOA submitted the personal info when initially requested. How can it be deleted from CTA databases??? -Janice P.
RESPONSE: I am not aware of any way to get the government to delete the information. It means your board can't engage in money laundering or support any terrorist activity.
That is good news about the CTA, but not good for efficient folks like me who complied with the law back in September, as we were urged by legal professionals to do. –Sara D.
RIDLEY v. RANCHO PALMA GRANDE HOA
Superior Court, County of Santa Clara
Case 19CV349909
 Following is a cautionary tale of a board's failure to maintain the common areas and their breach of duties. In a February 26, 2025 decision, a superior court judge came down hard on an association and its president.
The association had a common area water problem affecting one of the units. The owner repeatedly complained about it to the board. The problem ultimately led to mold, and the owner sued.
Evidence showed that the board avoided doing what it knew it must do. The board disregarded the recommendations of consultants, experts, and attorneys, and consistently put cost over safety. Evidence showed the board’s conduct toward the owner involved gross negligence, deception and a breach of fiduciary duties.
The court found that the HOA failed to investigate properly or timely and breached its duty to repair and maintain the common areas. The court concluded that the conduct of the HOA and the president was an extreme departure from the ordinary standard of conduct.
The court ruled that the president and board breached their duties of loyalty and honesty, failed to exercise decision-making authority fairly and failed to engage in fair dealing, to act in good faith, or exercise proper management.
The court called the president’s and association’s conduct reprehensible and denied the protections afforded by the business judgment rule. Accordingly, the court found the president personally liable for his actions and imposed punitive damages on the association.
COMMENT: In the end, the association had to fix the water problem, remediate the mold, pay attorneys' fees, and pay punitive damages. It is always cheaper for associations to properly maintain their common areas and immediately respond to safety issues. Shirking their duties can have serious consequences.
HIRING
EXPERIENCED ATTORNEYS
We are looking for experienced HOA attorneys for our offices in San Diego, Los Angeles and Northern California. Learn more about us here.
If you are interested, or know someone who may be a good candidate, you can contact Adrian Adams confidentially by email or by phone at (800) 464-2817.
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DISCLAIMER. Our newsletter provides commentary, not legal advice. Boards needing legal advice should have an attorney review the facts and law for their particular situation. We serve as corporate counsel to California associations.
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