Does this HOA Provide Busywork for Lawyers?

A Yale study of 900 homes finds that the presence of an HOA lowers the value of any house that’s up for sale. “HOAs have a negative stigma” in the eyes of people shopping for a home. Why is that? Future studies may tell. A possible reason could be “greater public awareness of frequent HOA disputes” with residents. (NOTE 1)

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What’s going on with these lawsuits? Residents in Quail Valley, Maryland want to find out, and the HOA needs to inform us.

You can go to the Maryland CaseSearch website (NOTE 2) to call up a table such as this one (images 2-4, above). It lists the “case status” of 24 lawsuits initiated by the Quail Valley HOA, the plaintiff. For this search, I chose a starting date of March 2020 because that’s when the COVID-19 pandemic first accelerated across the United States. The names of 21 property owners are listed as defendants in these various cases. (NOTE 3).

How do we find out what these cases are about? Clicking on a case number doesn’t tell you much. You have to travel, in person, to courthouses in Rockville and ask to see the paper files that provide some details. Or perhaps, if you ask, the residents themselves may tell you and show you what is happening to them.

I’m trying to understand what this table signifies. For example, 16 cases were dismissed, and eight are still open. I’m also wondering what might not be shown in the 24 rows; that is, what might be "hidden from our view." This table is not a complete report of legal activities during that time period. Comments & corrections (and emails to me) about this essay are welcome.

Looking Behind the Numbers: The Experiences of Three Residents
* One resident has described what happen at a court hearing: We had called and written to the Quail Valley HOA several times, over several months. The [alleged] violations cited in the HOA’s letters to us were not happening at our property. The HOA inspector must be looking at someone else’s house and yard, we said. It seemed like a plain error. The HOA did not believe us, and took us to court. The judge looked at our snapshots and dismissed the case. What a waste of everybody’s time and resources! We are busy parents with young children. Is this harassment?

* Another resident’s case is still “open,” according to the table. Here are details from the HOA’s letters accusing this resident of property violations: A spot of "dead/bare grass," cited twice, equals $200. A chunk of concrete beside the front stoop, placed there by the previous owner ("Fine: repair stoop/stairs/walkway"), cited nine times, equals $900.00. The debt collector adds on various fines and fees to target the homeowner with a grand total of $7,382.57. Punishment also includes the HOA denying his family access to the community pool—for two years. This family, like all residents, have paid for the pool with their monthly dues, which are up to date. (See a page from the HOA’s bill to this resident.)

* A third resident, whose case is listed in the table as "closed," won a court hearing in May of 2021. Here is a summary; I watching the proceedings on Zoom: The HOA took this resident to court, suing him for about $21,000 for various property violations and nonpayment of the HOA assessment. The homeowner had no lawyer. He defended himself. English is his second language. At the conclusion of the 3-hour proceeding, the court ruled that the resident owed $0.00 to the HOA. Not twenty-one thousand dollars, but zero dollars.

Proper Use of Lawyers and the Courts?
Aiming to be “fair and balanced,” let’s contrast these three examples of aggressive HOA litigation with the fact that yes, over the years, some homeowners have neglected to maintain their house (e.g., allowing a back deck to fall apart), or they caused a sore problem for the community (e.g., feeding rats by piling dog food on the ground). Perhaps, in these cases, taking a homeowner to court is fair, it’s the option of last resort for the HOA. (Note 4, and see the 5th photo, above, as an example of when legal action may be necessary.)

But here is today’s puzzle: When the HOA takes a homeowner to court, is the homeowner being negligent--or is the HOA just being abusive again? How are fellow residents to know which is which?

Another way of saying this: How efficient is our HOA’s use of lawyers? Taking residents to court is indeed a very expensive method for “managing” a disagreement. Could the HOA be resolving some of these issues through methods that are less expensive and less damaging to our HOA “community spirit,” a concept often touted by commissions and HOA-industry boosters?

Calling for Accountability and Transparency
Let’s shine a little light. Residents are now asking the HOA to report to us (which means, to the public) each month about what is going on. Privacy laws can of course be respected. No need to mention names or single out any family in your report (although names are clearly revealed on the database we are discussing here.) We’d like to see a list that includes descriptions. For example, what were these here 24 court cases about? What new actions against residents does the HOA initiate each month, and what is each one about? This is called transparency and accountability in government. (NOTE 5)

Caught Up in a Perverse System?
But even a “summary report” might not reveal much. Part of the perversity of the HOA industry is that an HOA can dish out all sorts of abuse on a resident, and then hide the record of abusive fines and fees behind a cloak of “debt privacy.” Keep it in the dark. Stifle criticism. Keep the residents atomized. Keep the targeted homeowner traumatized. The whole system, supported by antiquated state laws, is “usefully murky” for any HOA that may be habitually abusive.

Is this indeed the terrible pickle we are in? When an HOA makes a mistake, maybe it can’t even acknowledge that because it fears losing legitimacy. (NOTE 6) If power and secrecy are the top concerns of the HOA or its vendors, then learning does not happen, and their performance will not improve or move toward better governance. (NOTE 7)

Who Gets Targeted?
One final question: How many of the 21 defendants listed in the table are immigrants and/or ethnic minorities? Can the HOA report on that? All three residents in the descriptions above immigrated to the United States. Two also belong to religious and ethnic minorities. What sort of welcome did Quail Valley offer to these families? What might we do in Quail Valley if we wish to make amends to these parents and to their children?

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NOTE 1
Deborah Goonan reporting on a study by a Yale sociologist: “New Research Busts Myth that HOAs Protect Property Values” (Independent American Communities; June 18, 2019),
https://independentamericancommunities.com/2019/06/18/new-research-busts-myth-that-hoas-protect-property-values/

NOTE 2
How to search on the MD Case Judiciary database:

Go to https://casesearch.courts.state.md.us/casesearch/processDisclaimer.jis

Choose "company" as the plaintiff, then put their name in. [searched “Quail Valley”]

Choose "civil" cases and choose the County [“Montgomery County”]

Choose a time frame [in this example, 03/01/2020 through 11/03/2021, i.e., since the pandemic began.]

Leave both “district” and “circuit” courts checked.

Note to readers: Some redundant information (i.e., columns of repeated information) has been removed from the display shown in this essay to save space.

NOTE 3
A few things to notice about this table. Three of these 24 suits name the same defendant, thus there are 21 homeowners on the list. Also, It seems that this list of 24 rows is not a complete picture of ongoing HOA has actions against residents. For example, the provider states, “CaseSearch will only display results for cases that exist and for which the case's existence or a person's identity is not protected information under the Maryland Rules on Access to Court Records.” Also, families tell me that not everything is here. They worry about unresolved disputes that do not show on a list of lawsuits. Perhaps a greater number of active cases will appear if we enter a start date of 2019 or 2018.

NOTE 4
The names of some homeowners who deliberately do not pay their fair share (of the monthly HOA assessments) might appear on some CaseSearch lists. Or they might not appear on any list open to public viewing, due to debt privacy laws. Maybe the HOA can provide some clarity on these matters.

NOTE 5
Living in the real world, we affirm that lawyers and courts play an essential role in our society and our nation. (See the 5th photo, above, as an example of when legal action may be necessary.) The point of this essay is not to bash lawyers. It’s written in hopes of getting us all on board the ship of economic justice. It has to be a common effort, which includes the HOA board.

NOTE 6
At first, there seems to be a bit of “good news, in this table, if you want to call it that. 16 of the 24 cases have been “dismissed.” In these 16 cases, we presume that a dispute has been resolved, or perhaps the HOA considered the matter not worth pursuing after all (even though it initiated the law suit earlier). But in the three examples detailed above, the HOA was unwise (at least) to issue a lawsuit. And even if a case is quickly dismissed (e.g., by a judge who rules in the homeowner’s favor, or when the HOA withdraws a suit), any legal action is incredibly stressful for the person receiving the summons. Most residents can’t afford an attorney. You can try the county’s mediation process, but that costs the resident $50 to initiate. It’s slow, and can be a waste of time.

Any legal action is also costly to the HOA: There are attorney, administrative, and court costs. Those costs get passed on to … guess who? To all of the 592 homeowners in Quail Valley. In sum, lawsuits rarely contain any “good news” for the community.

NOTE 7
Deborah Goonan of IAC writes, "After following legal cases and communicating with owners all over the U.S., a pattern emerges. That pattern is that the association digs in their heels and does everything in their power to shift blame to the victim(s) of their abuse. The association must never admit fault, as it might undermine their credibility and authority."

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Steven Sellers Lapham is a 21-year resident of Quail Valley. He can be reached at MuskratMusic@gmail.com. The "Living on Cuckoo Court" collection of essays is on Patch.com.