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CCOC Decision Summary

#35-08, 36-08, Luna and Arneja v. Goshen Run HOA, ##(September 30, 2009) (Panel: Burgess, Farrar, Gannon):

Two members of the HOA complained that the HOA prematurely terminated their terms as members of the board of directors, that the HOA did not make its records available on request, that the HOA did not allow all candidates for the board to submit statements for the 2008 election, and that the HOA falsified the payment record of one of the complainants in order to disqualify him as a candidate.

On most issues, the hearing panel concluded that there was insufficient evidence from the complainants to prevail on their claims.  The main issue was whether the HOA prematurely terminated the complainants' terms as directors of the board.  The complainants argued that they were elected to the board in 2006 for 3-year terms.  The evidence showed that in 2006, due to vacancies on the board, the board appointed both Luna and Arneja to the board.  They were not elected by a vote of the membership.  The HOA's rules, and Section 2-407 (c) (1) of the Corporations and Associations Article of the Maryland Code, both state that the board of directors can elect members to fill any vacancies on the board, and that those members serve until the next election, at which time a successor is to be elected to fill out the remainder of the term.  In this case, there was no election in 2007.  Therefore, the Panel concluded that the terms of Luna and Arneja expired at the 2008 election, their positions on the board were properly up for election at that time, and they were not prematurely terminated.

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