I am concerned about potential liabilities if the HOA gets sued. Specifically, our CCR's mandate the HOA's right to use Roundup and other weed killing chemicals on the roadways and erosion control ponds. Given the recent damages awarded the plaintiff in the Monsanto lawsuit (most recent amount is 78M $); I am concerned that either the HOA, or the actual property owners might get sued. I realize that there are some corporate protections, but not sure that actually protects us from a lawsuit.
Secondly, even if the corporate status in theory protects us, does that mean we cannot be sued? What happens if we are sued. Even if we expect to win, it will cost money (legal costs) to defend ourselves against a suit. That cost could rapidly drain the HOA reserve account.
What are the risks? What are the potential liabilities for the HOA and for the homeowners in the HOA?
The HOA and the property owners can always be sued. Each should have their own insurance policies that will defend and indemnify the HOA and Property Owners for most situations. You should ask your personal insurance carrier about a personal liability umbrella. If you have knowledge of a product's hazardous effects you should have the HOA review it's by-laws and amend to reflect known hazards.
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