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Going legally broke has made a big comeback, especially in California, despite major revisions to the US bankruptcy code intended to curb filings. The number of Californians seeking bankruptcy protection is booming. The amount of personal bankruptcy filings rose 75% in 2009 (from the 2008 filings). With many Californians continuing to lose jobs or those unemployed failing to find jobs, we can only assume that bankruptcy filings will continue to increase through 2010.

The attorneys at SwedelsonGottlieb have prepared two articles regarding bankruptcy, one on the bankruptcy process and what you need to know, and another on bankruptcy stays – what they are and how they impact the assessment collection process. They are available for download here and here.

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Sandra Gottlieb, partner of SwedelsonGottlieb, and President of Association Lien Services, was also nominated by the Channel Islands Chapter for its Speaker of the Year for her program on boards of directors’ fiduciary duties and responsibilities. Sandra is a new member of the Channel Islands Chapter’s Board, was elected President Elect for the 2010 year and will be President of the Channel Islands Chapter for 2011.

ALS and SwedelsonGottlieb are committed to CAI and the Channel Island’s chapter, and are proud of Sandra’s nominations.

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On February 24th (this Wednesday), David Swedelson, along with Tim Cline of the Timothy Cline Insurance Agency will be presenting a program on how technology can help you, as a board member, manager or community association vendor, to be more productive by taking advantage of new computer technology. They will be talking about Outlook and similar programs, scanning options for an almost paperless office, dictation and transcription programs, programs to help you stay organized, recording devices, video cameras, PDAs and more. Who knew that David and Tim were computer and technology geeks?!

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Despite the wind, rain and cold weather that followed us from Southern California, SwedelsonGottlieb attorneys David Swedelson, Stephanie Rohde and Alyssa Klausner recently attended the 31st Annual CAI National Law Seminar in Tucson, Arizona. We have written an article about what we learned from this excellent seminar; follow this link for a copy of the article.

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David Swedelson and Sandra Gottlieb were recently nominated for the Greater Los Angeles Chapter of CAI’s Excellence in Education Award. Sandra was nominated, along with Karen Kokowicz, Manager of Westview Towers HOA (our client), for their program entitled How to Say No and Keep Your Job. David was nominated, along with Candace Gottlieb-Clark (of Mediating Solutions), Michael Huffman (Management Professionals, Inc.) and Dick Preuss for their program, Building Community
Through Reasonable Rules.
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David Swedelson was a speaker on a panel with this title at CAI’s recent 31st Annual CAI National Law Seminar in Tucson, Arizona. In preparation for that program, David Swedelson and firm Associate Stephanie Rohde authored an article entitled Collecting Delinquent Assessments in a Troubled Economy. Click here to download a PDF copy of that article which addresses assessment collection issues throughout the United States.

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A Building Component Does Not Become Common Area Just Because It Was Placed or Built On The Common Area; Homeowner Cannot Escape Maintenance Responsibility Based Upon Developer’s Mistake. Chen v. Fairmont Terrace Homeowners Association (2001) 2001 WL 1191483 (Cal.App.4 Dist.) Not Officially Published
This is a case that was handled through appeal by SwedelsonGottlieb Partner David Swedelson.

Owners will often insist that their association is responsible for maintaining or repairing a building improvement or component that would normally be their responsibility merely because of where it is located. Nathan Chen found out the hard way that where the component is located is not the criteria.
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We have all heard stories about accidental e-mails. How about accidental voice mails? I guess it can happen. The Los Angeles Daily Journal reported that a lawsuit is moving forward based on a voicemail that was accidentally left on an attorney’s system. The article states: “The three men thought they had hung up after leaving a message for one of Jasmine’s in-house lawyers, but the voicemail continued to record as they openly discussed the theft of trade secrets on speakerphone. Marvell fought all the way to the California Supreme Court to get the voicemail erased based on attorney-client privilege, but the court punted the case back to the 6th District, allowing to stand its ruling that the lawyers waived the privilege by discussing possible fraud.”

If you are discussing confidential matters, it is best to make sure that you keep it confidential. Be careful out there.
Click here to read the article

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By: David C. Swedelson, Esq.,
Senior Partner at SwedelsonGottlieb
Community managers have been telling us over the last year that much of their time has been consumed by matters relating to delinquent assessments. And they are not just referring to the basic mechanics of the collection process. They are also referring to the many questions that come up, the calls and emails from owners and board members, the foreclosure notices, the bankruptcies, and the list goes on. They lament that this is taking them away from doing their core responsibilities relating to maintenance and repair, etc.

Managers and board members alike are concerned about the impact that this recession is having on the communities they govern or manage. They are concerned about the deficit in the budget that is caused by their associations not receiving all of the revenue that was expected when the annual budget was prepared and the resulting lack of money to do all of the maintenance and repair that is required.

Because of the impact the recession is having on our client base, I have been monitoring articles and reports from experts regarding when we might reach the end of what is now being called the “Great Recession.”
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By Joan E. Lewis-Heard, Esq.
Senior Associate; SwedelsonGottlieb
For those community associations whose CC&Rs provide for assignment of rents from a tenant in the event an association owner who is renting their unit or home is delinquent in the payment of assessments, an association may collect the rent directly from the tenant to pay delinquent assessments.

If done properly, this can be done without a court order or the expense of a court appointed receiver. In order to do this, the following is required: 1) the CC&Rs must have an assignment of rents clause; 2) a lien for the delinquent assessments should be recorded to secure the debt; and 3) a statutory Demand to Pay Rent to a Party Other than Landlord, pursuant to Section 2938 of the Civil Code, is required to be delivered by mail or by hand to each tenant of the property and the landlord/owner. Follow this link for the required text of the demand to pay rent to party other than landlord.
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In California: 1.800.372.2207
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