What the Minutes Say
In May’s meeting minutes, the board casually noted:
A special assessment may be needed.
Sounds routine, right? Wrong. This isn’t about routine expenses. This is about you paying for their mistakes.
What They Didn’t Tell You
The board has already borrowed from the reserve fund – the account that’s supposed to be for major repairs and replacements – without telling owners at the time.
Now they need to refill it, and a special assessment is how they plan to do it. Translation: they send you a bill.
The “Legal Fees” Excuse
Ask why the reserve fund was raided, and they’ll say:
It was because of legal fees.
That part is true – the money went to lawyers. But here’s what they hope you won’t ask:
Why were those legal fees necessary?
Courts Don’t Award Damages for Nothing
Let’s be very clear:
Courts and tribunals do not award damages unless there is wrongdoing.
Example:
- If you sue your neighbour for fun, you lose, and you don’t get damages.
- If a corporation loses and is ordered to pay damages and legal costs, the court found they acted wrongly.
The Chain Reaction They’re Hiding
- Bad Decision – They take an action that breaks the law or someone’s rights.
- They Intimidate – Use your money to send threatening legal letters and launch questionable legal actions.
- They Lose – They’re ordered to pay damages and the other side’s legal costs.
- Reserve Fund Raided – Operating funds are drained, so they dip into the reserve. That is not illegal, but you the owner should be told about this.
- Special Assessment – Now we have to put back what we borrowed from our own reserve fund.
The Bottom Line
If they had acted lawfully, there would be no damages.
If there were no damages, there would be no legal bill.
If there were no legal bill, there would be no raid on the reserve.
And if there was no raid on the reserve, there would be no special assessment.
You’re paying for their mistakes twice:
- Once when they spent your money on a losing case.
- Again when they bill you to refill the reserve fund.
The Question You Should Be Asking
When they say, “It’s because of legal fees,” don’t stop there.
Ask:
What did you do that made those legal fees necessary in the first place?
Because that answer is the real cost they’re hiding.
