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Directors can’t ‘conspire’ to raise dues

Directors can’t ‘conspire’ to raise dues

Directors can’t ‘conspire’ to raise dues

The directors of a nonprofit homeowners’ association cannot “conspire” to raise dues and assessments, an appellate court in Alabama has held. The court has affirmed a trial court dismissal of a claim by another director challenging a dues increase and affirmed the removal of the complaining director but has reversed parts of a counterclaim by the association for damages allegedly caused by the complaining director. Gene Ponder was elected as a director of the Lake Forest Property Owners’ Association and signed the board’s Code of Ethics, its Code of Conduct and its Confidentiality Policy. He was opposed to a dues increase previously enacted by the board after a series of bylaw amendments...

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