Following a years-long legal battle, a district court has ruled to remove HOA board members from the La Bota Homeowners Association. The members have been barred from serving on the association's board now and in the future.
Following a years-long legal battle, a district court has ruled to remove HOA board members from the La Bota Homeowners Association. The members have been barred from serving on the association’s board now and in the future.
The case began 5 years ago in Texas. Homeowners in two developments, the La Bota Property Owners Association and the La Bota Ranch Owners Association, accused their board of overcharging the residents in fees. This board consisted of members of the Muller family, Albert Muller, III, Virginia Muller, Albert Muller, Jr., and Greg Ebe.
The Mullers owned the development and were serving on the board at the time. According to the homeowners, the Mullers increased the dues by $2,600 annually. The family would then foreclose on owners who failed to settle their dues and resell the foreclosed homes.
A group of homeowners subsequently sought legal action. Vanessa Perez, a District VII Councilmember and one of the homeowners involved in the lawsuit, likened it to a dictatorship where homeowners had no say.
A Webb County judge ruled in favor of the homeowners. Lopez ordered the removal of the four members from the HOA board. The same ruling also barred the four from serving on the La Bota board in the future. Additionally, they could not participate or have anything to do with decisions, whether directly or indirectly, made on behalf of either of the associations.
The two associations will have to replace the four board members without the input of the persons involved in the case. Should the HOAs fail to do so, the court will appoint a receiver, who will then appoint replacement board members.
Doanh “Zone” Nguyen, a lawyer representing the homeowners, believes the court made the right decision. The La Bota case marked the first of its kind in Texas. As such, it certainly sets a precedent for similar cases in the future.
Even without court intervention, associations do have the power to remove HOA board members. Homeowners should look to their state laws and governing documents for guidance on the procedure. Typically, an HOA’s bylaws will include guidelines on how to remove board members. It will also outline valid reasons to remove board members from their positions.
If state laws and governing documents remain silent, homeowners can consult an attorney for assistance.
Sign up below for monthly updates on all HOA Resource