Director’s Challenge to Decision Is Grounds for Removal by Members
Court says demand letter causing association to incur legal fees is sufficient “cause” for removal
An appellate court in Texas has upheld the action of a nonprofit homeowners’ association whose members removed a director for “cause” after she complained about the approval of a building variance and had her lawyer ask the board to have the Association’s lawyer to review the matter. ( Matzel v. Stonecrest Ranch Property Owners’ Association, Ct. of App., TX, Fourteenth Dist, Houston, No. 14-08-00326, 1/29/10 .) A member of the Association distributed to the rest of the Association’s members a copy of the director’s letter saying she was “prepared to seek all remedies” if the board did not change its way of operation. The members petitioned for a special meeting to consider her removal. After both sides had an opportunity to address the membership, the director was removed by a vote of 45-9.
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