Endless Condo Lawsuit Draining Unit Owners Bank Account

J.J. from outside of Connecticut writes:

Dear Mister Condo,

One of the owners is suing the association. We, not the association, are running out of money to pay the special assessment. The suit has been going on for three years. Lawyer fees are over $200,000.00. and no end is in sight. We don’t want to sell, even if we could. What can we do?

Mister Condo replies:

J.J., I am not sure what the lawsuit is about but it sounds awfully profitable for the lawyers and not so much for the unit owners, like you. As long as the association is engaging an attorney to defend against the lawsuit, all unit owners are on the hook for their share of the legal fees. It is possible the association could try to finance the lawsuit with an association loan but that carries its own expense and additional fees as well as raising the monthly association dues to cover the loan. Has the Board considered arbitration or any other method of settling the suit with this unit owner? There could be significant saving to the association if that path will work. Otherwise, I am afraid the legal bills will continue until the case is settled. Good luck!

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