Harassment or bullying an HOA homeowner is a crime

It’s against the law for anyone to bully or to create a hostile environment for anyone in a Nevada HOA.

 NRS 116.31184  Threats, harassment and other conduct prohibited; penalty.

      1.  A community manager, an agent or employee of the community manager, a member of the executive board, an officer, employee or agent of an association, a unit’s owner or a guest or tenant of a unit’s owner shall not willfully and without legal authority threaten, harass or otherwise engage in a course of conduct against any other person who is the community manager of his or her common-interest community or an agent or employee of that community manager, a member of the executive board of his or her association, an officer, employee or agent of his or her association, another unit’s owner in his or her common-interest community or a guest or tenant of a unit’s owner in his or her common-interest community which:

(a) Causes harm or serious emotional distress, or the reasonable apprehension thereof, to that person; or

(b) Creates a hostile environment for that person.

2.  A person who violates the provisions of subsection 1 is guilty of a misdemeanor.

NRS 116.31184

Wait!

Why are Seddon and Clarkson exempted from this law in Sun City Anthem’s newly published policy?
Clarkson wrote the Sun City Anthem policy a bit too narrowly:  
The law says community manager, employees, and HOA agents are covered:     

     A community manager, an agent or employee of the community manager, a member of the executive board, an officer, employee or agent of an association, a unit’s owner or a guest or tenant of a unit’s owner shall not willfully and without legal authority threaten, harass or otherwise engage in a course of conduct against any other person

Did Clarkson misquote the law TWICE?

Opps! It looks like Clarkson accidentally forgot TWICE to make the law apply to himself or Seddon if they are accused of bullying .

Clarkson’s anti-bullying policy only applies to acts against them.

“Such a violation may subject the violator to a fine commensurate with the severity of the violation and any other appropriate remedies available to the Association”

Clarkson’s anti-harassment policy for Sun City Anthem owners

So, what?

Could it be because foreclosure could be an “appropriate remedy”?

I guess all Clarkson would have to do is deem my complaints against him and Seddon were health, safety and welfare violations that subjected me to a fine commensurate to the severity of  my horrific conduct.

Then, HOA attorney and debt collector Clarkson could impose other “appropriate remedies available to the Asociation” and foreclose on this house too when I refused to pay. 

The law says an HOA can’t foreclose on a fine unless the violation poses a threat:

The association may not foreclose a lien by sale based on a fine or penalty for a violation of the governing documents of the association unless:      (a) The violation poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the common-interest community;

NRS 116.31162 (6)

Is it ethical for Clarkson to claim the anti-bullying law doesn’t apply to him or Sandy Seddon?

Short answer. No.

He should be fired immediately.

Clarkson knowingly revised the law to exclude himself and Sandy Seddon.
This is one more example of unethical self dealing.

Please consider this Nevada HOA retaliation case where attorneys claim to be exempted from being considered agents of the HOA under the retaliation statute NRS 116.31183.

“We conclude that an attorney is not an “agent” under NRS 116.31183 for claims of retaliatory action where the attorney is providing legal services for a common-interest community homeowners’ association. ” Dezzani v. Kern & Assocs., Ltd., 412 P.3d 56 (Nev. 2018). Link to Dezzani PDF.

The word “agent” is not defined in NRS 116.31183 or otherwise in NRS Chapter 116. SeeNRS 116.31183 ; NRS 116.003 –.095 (definitions). Kern points to NRS 116.31164, which governs foreclosure of liens, and argues that because NRS 116.31164 uses the words “agent” and “attorney” distinctly, it demonstrates that the Legislature purposefully distinguished an attorney from an agent under NRS Chapter 116. Therefore, Kern contends that the Legislature specifically omitted attorneys from NRS 116.31183, and the term “agent” does not include attorneys.

Dezzani v. Kern & Assocs., Ltd., 412 P.3d 56, 59 (Nev. 2018)

Given an attorney’s ethical obligations to be candid with a client and zealously represent his or her client, and the general presumption that an attorney providing legal services to a client is generally not subject to third-party liability for that representation, we agree with Kern and the amicus curiae State Bar of Nevada that the two relationships should not be treated the same in NRS 116.31183. Doing so, and imposing liability on an attorney for representing his or her HOA client, would impermissibly intrude on the attorney-client relationship and interfere with an HOA’s ability to retain an attorney and the attorney’s ability to ethically represent the HOA. Therefore, we conclude that the term “agent” in NRS 116.31183 does not include an attorney who is providing legal services to, and acting on behalf of, a common-interest community homeowners’ association.

Although the Dezzanis argue that the attorney-client relationship is different when an attorney and an HOA are involved because the HOA members’ fees are used to pay the HOA’s attorneys, we disagree. Kern represented the HOA, not its individual members. Thus, similar to counsel for a corporation, Kern owed fiduciary duties only to the HOA, not to the individual members of the HOA. See Skarbrevik v. Cohen, England & Whitfield, 231 Cal.App.3d 692282 Cal.Rptr. 627, 635 (1991) (“[C]orporate counsel’s direct duty is to the client corporation, not to the shareholders individually, even though the legal advice rendered to the corporation may affect the shareholders.”).

Dezzani v. Kern & Assocs., Ltd., 412 P.3d 56, 62 (Nev. 2018)

To whom does Clarkson owe a fiduciary duty?

Clarkson’s fiduciary duty is to the Association, not to me as an individual member of the association or to me, previously as a single elected member of the board.

Clarkson’s representation of Sandy Seddon’s interest vs. those of the HOA is a breach of his fiduciary duty to the HOA. Acting on his own initiative, or getting assignments or taking direction from Sandy Seddon, is usurping the authority of the Board.

Clarkson breached his fiduciary duty to the HOA, and that’s why I want the HOA to sue Clarkson for damages under the NRCP 23.1 shareholder derivative provision.

The Board doesn’t understand how he has breached his duty to the HOA and is not willing or able to protect the association from him. I can represent the HOA as a single member, but I just think it will be harder to prevail because Clarkson is so willing to defame me, turn me into a pariah and bury the HOA in fees to try to protect it from me. 

Respondeat superior is Clarkson’s escape hatch when he is usurping the authority of the HOA Board.

Here’s what Clarkson said in his 8/24/17 letter removing me from my elected Board seat

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 Clarkson had no legal authority to remove me from the Board. The discussion in the Board executive session in the morning was to get the Board to respond to my notice of intent against Clarkson and my Form 514a complaint against Seddon and her sidekick Lori Martin.

8/24/17 Clarkson’s imaginary statement of the law that conveniently ignores the black letter of the law in NRS 116.31034, NRS 116.31036, NRS 116.31084(1)(a)(b), and NRS 116.4117,

8/16/17 Notice of Intent to file a professional ethics complaint against Clarkson

I served notice on 8/16/17 of my intent to file a professional ethics complaint against him to the State Bar of Nevada image.png

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8/11/17 notice of intent to file an ethics complaint against Sandy Seddon

8/11/17 notice of intent to file Form 514a
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Looks a lot like bullying & retaliation to me

By the Numbers – Part 1

You’re fired!

A closer look at surprise decision to fire me from the Sun City Anthem Board made secretly by the other six members of the Board and announced to me at the August 24 Board meeting shows why SCA’s new attorney Adam Clarkson is the one who should be fired.

Clarkson advised the other six members of the Board that they could take unlawful action in secret to remove me, the elected seventh Director, from the Board without using the removal election process. Then, adding insult to injury, Clarkson took over the removal election process of Rex Weddle, Tom Nissen, Aletta Waterhouse and Bob Burch after four petitions signed by 825+ owners had been submitted and fired the SCA Elections Committee. The integrity of the removal election process has been compromised by the actions of management and the attorney, the very people who said I could be fired without a removal election.

Says Who?

Who says Board members,management and the attorney are allowed to diminish the value of your vote or lessen owners’ control over who sits on the SCA Board of Directors?

  • Who said the attorney Clarkson was authorized to take over the removal election process of the four directors who had more than 825 signatures to recall them at a cost of $325/hour?
  • Who said that the GM had the authority to pay a CPA an unknown, and unlimited, amount to work with Clarkson Law Group to do what is normally done by the volunteer Election Committee on any other SCA election?
  • Who said the Election Committee could have no role in the removal election of four members of the Board?
  • Who said the Election Committee could be relieved of all the duties listed in its adopted charter to conduct any Sun City Anthem election?
  • Who said six members of the seven-member Board had the authority to vote the seventh elected Board member off the island without a removal election for any reason, let alone because I blew the whistle?

So, here’s what I’m saying…

My sudden forced exit from the Board was done in retaliation for my complaining that the Board and management were violating SCA’s governing documents and NRS 116 and other statutes.

I’m saying that their allegations including that I am using my position on the Board to make a profit are all false.

I’m saying the attorney should be fired for causing six members of the Board to act illegally to kick me off the Board based on unproven allegations, without making the slightest attempt to prove whether the allegations are true or false, and without the common decency of even telling the seventh member of the Board what they were sneaking around doing

I’m saying that six of the seven members on the Board have no legal authority to just fire the seventh member from Board without a removal election called by a petition signed by at least 10% of the 7,144 members.

I’m saying that six of the seven members on the Board have no legal authority to just fire the seventh member from Board regardless of merits of their allegations and regardless of the intensity of the six Directors’ personal beliefs in the allegations.

Clarkson told the other six members of the Board that making an unproven allegation that I was making, or could theoretically make, a profit from being on the Board was sufficient justification for kicking me off the board instantly. No need to have a hearing to find me guilty. No need for 10% of the owners to sign a petition asking for a removal election. No need for for a removal election with 2,501 to vote for removal.

I’m saying the action was taken to boot me off and refuse to indemnify me or provide me a defense as required by law was done in retaliation of my giving notice to the GM, CAM, attorney, and Board of my intent to bring their actions to the attention of the authorities.

I’m saying that we unit owners have a right to know who made these decisions and by what legal authority.

I’m saying that the Ombudsman or some other neutral State official should have provided independent oversight to the Election Committee to ensure the integrity of the removal election process,

I’m saying the four people who are facing recall should not have dismissed the petitioners’ complaints without consideration of their merits on the belief that anyone who would complain is obviously just a malcontent or a whiner.

I’m saying the four Directors facing the unnecessarily-expensive removal election should not have treated the complaints as unworthy of response and there’s no need to listen to owners when these Board members already know what’s best.

I’m saying the four Directors facing the unnecessarily-expensive removal election should have done the right thing – and just resigned.

I’m saying that you all should vote for the removal of the four Directors who are making you pay through the nose to have a removal election right after they refused to honor your vote that put me on the board and did not ask for your vote when they removed me.

Resources:

Nona’s Notice of Intent (pdf)

SCA Response to Demand Letters and Board Decision (pdf)