Assessments Board Common Fees Condominium Financial Governance Legal

Condo Unit Owner Doesn’t Want to Pay Assessment to Cover Lawsuit Costs

C.O. from outside of Connecticut writes:

Dear Mister Condo,

One owner is suing the condo so now the condo wants each owner to pay $500 to pay the legal fees to defend against the suit. I have no problem if it was for something to improve the condo that the budget couldn’t cover but not legal fees. They have also threatened us with a collection agency if we do not pay. We live pay check to pay check as it is and do not have this extra money. What is your opinion?

Mister Condo replies:

C.O., I am sorry for your financial worries. Lawsuits against the association are serious business and the Board is right to hire an attorney to defend against the lawsuit. As a unit owner, you are a member of the corporation and have a vested interest in the outcome of the lawsuit. If the association decided to not defend itself and the plaintiff won the suit, the association could find itself owing a great deal of money to the unit owner bringing the suit. The end result of that would be an assessment to unit owners equal to the amount of the award. You could end up paying much more by not paying to defend against the suit. The bottom line is that you are the association and you are being sued. You want to defend yourself and the legal fees incurred are part of being in the association. You must pay them or the association will act against you with full legal authority to do so. My opinion is that you should pay these fees and keep a close eye on the lawsuit. Hopefully, the money invested in the defense fees saves you from having to pay far more. Good luck!

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