AssociationHelpNowTM READ BY ASSOCIATION BOARD MEMBERS AND MANAGERS
The community faces receivership due to litigation in which the Boards of Managers sued the Board of Directors for failure to perform their fiduciary responsibility. If the judge appoints a receiver what exactly does it mean in terms of cost, etc?
The likelihood is that it will be very expensive. The greatest likelihood is that the Court will appoint an attorney as receiver. If that occurs, you will be paying, in rough terms, between $250.00 per hour and $400.00 per hour. The receiver, if he/she thinks it desirable, may hire a manager at a lower hourly rate, or may handle things himself/herself. Larger decisions, such as major repairs or financial expenditures will likely result in applications for Court approval. I would recommend some kind of mediation/arbitration and hope that a much less costly solution presents itself.