Could the May 5, 2026 Association Community-wide Email Create Legal Exposure for the Association?
Did the Board Risk Liability by Sending an Association-Wide Email Attributing Legal Expenses and Other Allegations to a Homeowner and Director?
If I were evaluating potential legal exposure arising from the May 5, 2026 eblast, the first questions I would examine would be:
(1) defamation,
(2) fiduciary duty, and
3) misuse of Association resources.
"Until such time as you withdraw your allegations and threats and agree in writing that you will not file suit against the Association..."
"Please let us know if you are open to a settlement agreement where you withdraw your claims, release the Association from them, and agree not to file suit..." - SDRLC HOA Executive Committee May 28, 2026
The purpose of this page is not to determine whether any laws were violated. Rather, it is to identify the legal theories that could potentially be asserted if someone challenged the Board's decision to distribute the May 5, 2026 communication to the entire membership.
At its core, the question is simple:
Was this a legitimate Association communication, or did it go beyond what was necessary and create unnecessary legal risk for the Association?
Potential Area of Concern
1. Defamation
The Board's community-wide communication identified a sitting director by name and associated her with numerous allegations, including disputes involving homeowners, social media activity, interactions with children, legal actions, and Association expenses.
If any statement was false, misleading, lacked important context, or created a false impression, the Association and individual directors could potentially face defamation claims.
Because the communication was distributed to the entire membership and concerned disputed matters that had not been resolved through litigation, arbitration, or other independent review.
Potential Area of Concern
2. Breach of Fiduciary Duty
Board members have a fiduciary duty to act in the best interests of the Association.
A court could reasonably ask:
"How did this communication benefit the Association?"
The Board could have informed homeowners that legal expenses were increasing without naming an individual director or publishing a list of allegations.
The more a communication appears designed to criticize an individual rather than conduct Association business, the greater the risk that a court could question whether directors were acting for a proper Association purpose.
Potential Area of Concern
3. Misuse of Association Resources
Association funds, email systems, management resources, legal review, and volunteer time belong to the membership.
If those resources are used to advance a personal dispute, influence member opinion, or attack a political opponent within the Association, questions may arise regarding whether Association assets were used appropriately.
Why were Association resources used to distribute allegations about a single director?
How much Association money was spent preparing, reviewing, and distributing this communication?
Was this a necessary Association expense?
Potential Area of Concern
The Davis-Stirling Act permits litigation matters to be discussed in Executive Session because litigation is generally considered sensitive and confidential.
The May 5 communication publicly discussed an active dispute and disclosed information regarding legal proceedings, insurance communications, and claims involving a director.
A court could ask whether the disclosure was reasonably necessary or whether it exceeded what homeowners needed to know.
Potential Area of Concern
Directors have the right to disagree with the majority.
When a board publicly identifies and criticizes a dissenting director, questions naturally arise regarding whether the communication was intended to inform homeowners or punish a director for expressing opposing viewpoints.
Even if retaliation was not intended, the appearance of retaliation can create legal and governance concerns.
Potential Area of Concern
6. Increased Litigation Costs
One concern sometimes raised in similar disputes is that communications intended to defend an organization can inadvertently increase litigation exposure.
Every allegation made publicly becomes a document that attorneys, mediators, insurance adjusters, arbitrators, and courts may later review.
Did this communication reduce the dispute, or did it expand it?
The answer may have significant consequences for the Association and its members.
Questions Homeowners May Wish to Consider
After reading the May 5, 2026 communication, homeowners may wish to ask themselves:
Why was this communication sent?
Why was it sent to the entire membership?
Why was a director identified by name?
Why were allegations included that were unrelated to legal expenses?
Could the Board have explained the legal expenses without discussing an individual homeowner or director?
Did this communication help resolve the dispute or make it worse?
Every homeowner should review the May 5, 2026 communication and draw their own conclusions.
The purpose of this page is not to tell homeowners what to think. It is simply to identify the legal questions that an attorney, insurance carrier, mediator, arbitrator, or court might ask when reviewing the Board's decision to distribute the communication.
Ultimately, the issue is not whether people agree or disagree with Victoria LaBruzzo.
The issue is whether the Board exercised sound judgment when it chose to use Association resources to publish the communication.