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Association Attorney Must Have a Variety of Skills
We have a saying around our office when we discuss a fellow attorney, "is he a condo lawyer or a regular lawyer?" When a board considers establishing a relationship with a law firm, it must consider not only the experience, knowledge, temperament and qualifications of the lawyer, but also their familiarity with the unique problems of representing an association.
Most lawyers are required to wear more than one hat, but an association attorney has to have the whole store at their disposal. Considering the fast pace of the world as we approach the millennium, some of these hats have to attach to cables, circuits and microchips. The association attorney must be:
- A business expert. Since a board of directors of an association is running a business often worth millions of dollars in fixed assets, the board must be directed to act in a "businesslike fashion" in all of its decision-making. Whether it is hiring a contractor, investing money, enforcing rules or initiating litigation, the board is held to a standard of using "sound business judgment." The attorneys role is to advise the board in these situations to essentially keep the board out of trouble. Individual directors must put aside personal agendas and petty squabbles and act in the best interests of the association. Usually the attorney is the only one who can see that a certain lawsuit will cost more in legal fees than what is at stake and should either be settled, dismissed or not filed at all.
- A contract negotiator. Unless a director does this for a living, a board must remember that attorneys probably spend more time conducting negotiations than anything else. In any effective negotiation scenario, one must be familiar with the various techniques, buzz words and strategies that make for an effective solution. Sometimes too harsh an approach can be more damaging than a weak one. In dealing with contractors, homeowners, municipalities and other potential adversaries, experience and skill in negotiations is crucial.
- A financial expert. Every association, regardless of size, should have a relationship with an accountant to do reviews, audits, year-end reports, consulting, etc. However, sometimes issues involving appropriate investment instruments, reserve requirements, lending policies, legal spending, etc. require knowledge of the legal consequences and the attorney must be consulted to advise the Board of the limitations and possible consequences of certain decisions. This is also crucial within the scope of the board running its business.
- A media spokesperson. We all know about some of the strange and bizarre incidents that occur in associations that make the newspapers. Some of them have legal consequences that must be addressed very precisely in any articles to avoid further exposure to liability for the association. The boards legal representative is often the most qualified person to exercise discretion and limit comments to pure facts and shield confidential information.
- A management consultant. Many boards, for various reasons, do not have the benefit of having an experienced and knowledgeable professional property manager to guide the board in its day-to-day operations. The association attorney can sometimes step in and fill this gap for associations that are self-managed or who retain a company for financial and customer service and are at the mercy of an inexperienced manager.
- An architect and engineer. Although not professionally trained in this area, an experienced board attorney should be familiar with common problems facing associations such as flooding, windows, roof leaks, etc., to help a board identify association versus owner responsibility, developer warranty issues and contractor compliance. By assisting the board in identifying problems and narrowing issues, the attorney (sometimes in conjunction with the manager) can recommend a possible course of action, as well as identify a recognized specialist who can prepare a scientific report after field-testing the problem.
These are just some of the various roles played by the association attorney. As you probably recognize, these are "non-traditional" roles and go against the stereotype of the piranha litigator. An association attorney must be a proactive problem solver to contain potentially volatile situations and help an association control its costs.
