Legal Question in Real Estate Law in Colorado

bankrupt HOA in a lawsuit

My husband and I bought property in a subdivision where the HOA had sued the developer for road problems. Since we all have 35 acres+ there are 81,000 linear feet of road. The cost to fix the roads is very high. We had no idea the HOA was in a lawsuit when we bought. Now, due to lawyers fees and expenses, the HOA is broke. During our last meeting, we were threatened by the board that if we do not give more money to the lawsuit, if we vote to quit the case, the developer will most likely get a judgement against the HOA for their legal fees, and since the HOA is broke lien our properties! How likely is it that the developer would get that judgement? Could they lien our properties?


Asked on 10/26/03, 11:30 am

1 Answer from Attorneys
Eric Fisher Law Office of Eric A. Fisher. LLC

Re: bankrupt HOA in a lawsuit

Your question raises several complex legal issues that can only be addressed after reviewing the Covenants and/or Declarations for the property and the Bylaws of the HOA. The law firm representing the HOA should have produced legal memos regarding the litigation that you may be able to review.

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Answered on 10/27/03, 12:13 pm


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