Condo owners may not have been informed of lawsuits or insurance matters prior to November 2017. They may have obtained this information in the Status Certificate if they chose to purchase one, or in meeting minutes if disclosed, distributed and read.
This information must now be provided in an Information Certificate which is provided multiple times a year.
A ruling in the United States offers background to mandatory disclosures required in the Condo Act. A $20 million verdict was made against a Las Vegas community. A swing set crossbar fell on a 15 year old’s head causing permanent brain damage. The community did not have a maintenance and inspection plan on their playground equipment.
Opportunities for the community to settle the case for the policy maximum of $2 million were declined. They decided to go to trial and lost the case. Homeowners are now responsible for about $90,000 each.
Homeowners learned about the case on social media. They never received notice by management about the lawsuit. It is unclear if there was intentional misconduct by management or the insurance company. People are at risk of losing their homes.
Information certificates should include information about lawsuits against the corporation that may not have been disclosed prior to November 2017.