H 7037 – WHO PAYS ALL THE LEGAL FEES?

An Opinion By Jan Bergemann
President, Cyber Citizens For Justice, Inc.

Published May 6, 2014

H 7037 is on its way to the Governor’s desk for his signature. Make no mistake: This bill is the answer of the legislature to the Florida BAR’s attempt to rein in the task a community association manager (CAM) can legally perform. The answer of the Supreme Court is still in the making.

Make no mistake: This is a food fight between attorneys and CAMs – at the expense of the owners of properties in community associations. Make no mistake: This will create a lot more legal fights – and association boards should quickly check their contract with community association management companies to see if they have signed a contract to pay for the legal fees of their CAM if the CAM gives false advice.

This statement from Representative Kathleen Passidomo (R-Naples) clearly shows that our legislators either don’t read the bills they are voting for – or plainly don’t understand the meaning of the wording of these bills: “We’re not asking them to represent clients in legal matters, we’re asking them to fill out forms!”

Ouch, that statement really hurts considering this part of the bill:

468.431 Definitions.—As used in this part:

(2) "Community association management" means any of the following practices requiring substantial specialized knowledge, judgment, and managerial skill when done for remuneration and when the association or associations served contain more than 10 units or have an annual budget or budgets in excess of $100,000: controlling or disbursing funds of a community association, preparing budgets or other financial documents for a community association, assisting in the noticing or conduct of community association meetings, determining the number of days required for statutory notices, determining amounts due to the association, collecting amounts due to the association before the filing of a civil action, calculating the votes required for a quorum or to approve a proposition or amendment, completing forms related to the management of a community association that have been created by statute or by a state agency, drafting meeting notices and agendas, calculating and preparing certificates of assessment and estoppel certificates, responding to requests for certificates of assessment and estoppel certificates, calculating the votes required for a quorum or to approve a proposition or amendment, drafting prearbitration demands, coordinating or performing maintenance for real or personal property and other related routine services involved in the operation of a community association, and complying with the association's governing documents and the requirements of law as necessary to perform such practices and coordinating maintenance for the residential development and other day-to-day services involved with the operation of a community association. A person who performs clerical or ministerial functions under the direct supervision and control of a licensed manager or who is charged only with performing the maintenance of a community association and who does not assist in any of the management services described in this subsection is not required to be licensed under this part.

Only filling out forms? Oh my…! There is a lot more to it – and some of the topics are pretty problematic, considering that even attorneys have been known to get it wrong. But I guess we are getting used to the fact that Rep. Passidomo doesn’t get things right. Remember last year when she pushed the Quickie Foreclosure bill? As predicted the bill did really nothing but blowing smoke (One year of fast-track foreclosures has taken us nowhere,…).

Drafting presuit mediation demands? Calculating the votes required for a quorum or to approve a proposition or amendment? Calculating the votes required for a quorum or to approve a proposition or amendment?

Not sure what that has to do with filling out forms?

Mistakes can get very costly, because most of such mistakes will end up costing lots of money in legal fees. The bill contains provisions attempting to protect CAMs from liabilities and lawsuits.

I always wonder why certain professionals want to charge for their services without being willing to take on the liability for their actions.

Here is a great advice for board members: Make sure that the contract between the association and the management firm doesn’t contain provisions that obligates the association for the cost of the legal defense of the CAM!

People who want to write bills should as well be liable for the services they are billing for.

Great advice for CAMs: If you are afraid your services are subpar – don’t bill for it!