Entries by julius nagy

Liquidated Damages

  Lawyers often insert liquidated damages clauses into contracts, intending to specify the amount of damages that one party will receive if the other party breaches the agreement. These clauses can be efficient mechanisms for dispute resolution, eliminating the need to prove damages and, thereby, streamlining litigation (if not avoiding it altogether). However, California law […]

Unlawful Detainer

Unlawful detainer is a narrowly tailored procedure designed to expeditiously resolve landlord-tenant disputes involving right to possession of rental property. The primary purpose of unlawful detainer cases is to determine the right to possession of rental property, forfeiture of the lease or rental agreement, and secondarily, to determine any past due rent and damages for […]

Current Trends in the Fair Housing Act

Increasingly, community associations are faced with residents’ requests for both “accommodations” and “modifications” under the Fair Housing Act. Title VIII of the Civil Rights Act of 1968, a/k/a The Fair Housing Amendments Act, located at 42 U.S.C. §3601 et. seq. (1968), was enacted by Congress as a means of preventing housing discrimination based upon race, […]

Tax filing requirements for Condos

Condominium and other forms of community associations are entities that must account for their taxable income. Even if no tax is owed, there is still a filing requirement. A community association will generally not qualify for tax-exempt status under Section 501(c) of the Internal Revenue Code. Nonetheless, Section 528 of the code permits a qualifying […]

Insurance Deductible

Perhaps no single duty generates more angst for the average board member than the annual task of selecting the right Master Policy coverage for the community.  Unfortunately, buying the coverage is just part of the challenge, since the purchase decision is coupled with the added responsibility of making sure the association is able to qualify […]

D and O FAQ

1.  What is a D&O policy intended to do?  The policy is intended to protect directors and officers against allegations of wrongful conduct when they are acting as company executives. 2.  When does wrongful conduct have to occur to be covered by a D&O policy? Typically, most policies cover alleged wrongful acts that have taken […]

Entity Rule

California subscribes to the “entity rule,” which provides that when a lawyer or a property manager, acting as a managing agent of an association, represents an organization, the organization is the client, not the organization’s constituents. Therefore, the organization holds the attorney-client privilege or the managing agent –client fiduciary duty, not its constituents or any […]

Hiring a Handyman

By definition, a handyman is like a human Swiss Army knife – a convenient way to efficiently accomplish a variety of tasks.  Always cheaper than hiring a contractor, a handyman represents a budget-saving alternative; helping to keep maintenance costs for the community association lower and, at least at first blush, being a task-accomplishing hero to […]

Independent contractor versus employee

    Not all workers are employees as they may be volunteers or independent contractors. Employers often improperly classify their employees as independent contractors so that they, the employer, do not have to pay payroll taxes, the minimum wage or overtime, comply with other wage and hour law requirements such as providing meal periods and […]

Trivial Defects Law

Many people are injured when they trip and fall over a rise in the sidewalk or other defect on public or private (Association) property. The “trivial defect rule” dictates that the property owner (Association) is not liable for injuries sustained by an individual on the premises if reasonable people would conclude that the defect that […]