OBL Water Heater Scams

Report #2 Of An “Out-Of-Control OBL Board”

OBL Owners Against

COA Board Abuse
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One Buckhead Loop’s Board of
Directors and Association have
been sued by homeowners and
residents for a variety of abusive
conduct that violates Georgia
Law and the Declaration of
Condominium that governs the
relationship between the
Association and homeowners.
While the building’s name may
have changed to the Meridian
Buckhead, the association’s legal
name remains One Buckhead
Loop Condominium Association,
Inc.
To date, over $25 million in
lawsuits have been filed against
the board and the association for
its unlawful and fraudulent
conduct. Instead of addressing
these important issues, the OBL
Board and their lawyers have
taken abusive and harassing acts
towards homeowners and
residents who have challenged
their authority at a great cost and
liability to all owners.
This report is the second in a
series of reports developed for
current and prospective
homeowners about abuses of the
current OBL Board and its
management.
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This particular report deals with
an unlawful resolution the OBL
board took in 2006 related to
water heaters that are the subject
of litigation and a class action
lawsuit being contemplated by
OBL members.
Current homeowners may be
aware of the board resolution in
2006 to replace their water
heaters. However, what many
homeowners may not know is
that the board has unlawfully
used the resolution to abuse its
authority to fine owners as much
as $400 per month for not
following it’s unlawful edict.
The purpose behind these and
other unlawful assessments,
kickbacks, fines, and abuses
stem from the current President’s
desire to make the books of the
association appear to be in better
shape than they really are.
By the use of unlawful and
abusive assessments, fines, and
collection methods, the current
board and President have
implemented a pattern of
business activity that has been
determined by lawyers and legal
experts to constitute civil
racketeering activities.
Overview
The facts presented in this report
will clearly show that each
homeowner ’s rights were
intentionally violated by the OBL
Board and these actions pose
potential liabilities for each owner
and potential owner at OBL.
On October 17, 2006, the OBL
Board passed an unlawful
resolution mandating that all
OBL owners replace their water
heaters at a cost of from $500.00
to over $2,400.00.
As you will read in this report, the
unlawful resolution passed was
without the knowledge, input,
approval, or vote of OBL
members as required by the
OBL Declaration.
The Declaration mandates that
the OBL Board seek a vote of its
membership for any cost of work
in excess of $300 that it orders
owners to undertake.
The remainder of this report will
detail the facts of these violations
as well as provide you insights
into the Georgia laws that govern
the actions of the OBL board and
each homeowner and resident of
the Meridian Buckhead.
 Background Facts

FACT ONE
The OBL Board was looking for ways to
On May 17, 2006, the OBL Board met and discussed a number of reduce its annual insurance premiums.
While a good objective, it must follow
matters in their monthly board meeting. the law and seek the membership’s
approval.
The OBL Board Minutes from the May 17, 2006 meeting reflect the
following entry on page three with reference to the heading of
“Insurance”…

“Insurance – Ed meeting with insurance company on Monday to discuss

requiring homeowners to replace their hot water heaters (most units still
have original hot water heaters, which are nearing end of life). Potential
savings in insurance premiums.”

FACT TWO

On July 12, 2006, the OBL Board met again and discussed a number of
matters in their monthly board meeting and bursting water heaters.

The OBL Board Minutes from the July 12, 2006 meeting reflect the
following entry…

“Water heater burst on 10th floor and caused damage to floors below.”

FACT THREE

Despite warnings of the liability of its actions, the OBL Board

intentionally violated the provisions of the Declaration of Condominium
that governs the relationship with each OBL homeowner by mandating
that each homeowner replace its hot water heater at a cost from
$500.00 to over $2,400.00.

This mandate was accomplished by a resolution that was passed by the

OBL Board of Directors on October 17, 2006 without the input,
knowledge, approval, or vote of owners as required by the OBL
Declaration.

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Each member of the OBL Board of
Directors as well as each resident
and owner in a condominium are
obligated under Georgia law to
lawfully comply with the Condo
instruments of the association that
governs the management and
operation of the condo
O.C.G.A. § 44-3-76 as stated
herein, mandates that both owners
and occupants comply with
condominium instruments such as
the OBL Declaration and Bylaws.
The provisions stated in the
Declaration apply to board
members as well as each owners
and occupant.
The Declaration and Bylaws are
like the Constitution and Bill of
Rights of the Condo Building you
live in. These rights are granted by
Georgia law and are created to
prevent the types of abuses
currently taking place at the
Meridian Buckhead.
We have highlighted key provisions
of the law so that it may help you
understand not only your rights
under the law, but your duty to
prevent violations by your board.
Such violations can have severe
ramifications to your property by
assessing liens and judgments
against the associations and its
members and your units.
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Georgia Condo Act
TITLE 44. PROPERTY
CHAPTER 3. REGULATION OF SPECIALIZED LAND
TRANSACTIONS
ARTICLE 3. CONDOMINIUMS
O.C.G.A. § 44-3-76 - - Compliance with condominium instruments,
rules, and regulations; means of enforcement
Every unit owner and all those entitled to occupy a unit shall comply
with all lawful provisions of the condominium instruments. In
addition, any unit owner and all those entitled to occupy a unit shall
comply with any reasonable rules or regulations adopted by the
association pursuant to the condominium instruments which have
been provided to the unit owners and with the lawful provisions of
bylaws of the association. Any lack of such compliance shall be
grounds for an action to recover sums due, for damages or
injunctive relief, or for any other remedy available at law or in equity,
maintainable by the association or, in any proper case, by one or
more aggrieved unit owners, on their own behalf or as a class
action. If and to the extent provided in the condominium instruments,
the association shall be empowered to impose and assess fines,
and suspend temporarily voting rights and the right of use of certain
of the common elements in order to enforce such compliance;
provided, however, that no such suspension shall deny any unit
owner or occupants access to the unit owned or occupied nor cause
any hazardous or unsanitary condition to exist. If the voting right of a
unit owner has been suspended, then to the extent provided in the
condominium instruments, that unit owner's vote shall not count for
purposes of establishing a quorum or taking any action which
requires a vote of the owners under this article or the condominium
instruments. Notwithstanding any other provision of this Code
section, to the extent provided in the condominium instruments,
water, gas, electricity, heat, and air conditioning services being
provided to a unit or unit owner by the association may be
terminated for failure to pay assessments and other amounts due
pursuant to subsection (a) of Code Section 44-3-109, subject to the
suspension standards and notice requirements imposed on the
institutional providers providing such services to the condominium
development, only after a final judgment or final judgments in excess
of a total of $750.00 are obtained in favor of the association from a
court of competent jurisdiction.
 OBL Declaration

Section 18 (d) (i)

Page 31 of the OBL Declaration under
(d) Measures Related to Insurance Coverage 18. (d) (i) and (ii) contains the language
listed to the left. Please refer to your
Condo Instruments given to you at
purchase or secure from management.
(i) The Board of Directors, upon resolution, shall have the authority to
require all or any Unit Owner(s) to do any act or perform any work
involving portions of the Condominium which are the maintenance
responsibility of the Unit Owner, which will, in the Board’s sole
discretion, decrease the possibility of fire or other damage in the
Condominium, reduce the insurance premium paid by the Association
for any insurance coverage or otherwise assist the Board in procuring or
maintaining such insurance coverage. This authority shall include, but
not be limited to, requiring the Owners to install smoke detectors,
requiring Owners to make improvements to the Owner’s Unit, and such
other measures as the Board may reasonably require so long as the
cost of such work does not exceed three hundred ($300.00) dollars per
Unit in any twelve (12) month period.

FACT FOUR

The resolution the OBL Board passed violates this provision of the
Declaration in that the charge for the work required, far exceeds the
$300.00 provision. The OBL board passed the resolution, despite
warning, with the full knowledge that the OBL board was violating this
provision and Georgia law and creating liability for each OBL member.

The failure of the OBL board to follow the law and then further
compound the situation by fraudulently assessing invalid fines to those
that do not comply with the unlawful “assessment” subjects the
association to further legal liability and each homeowner to potential
damages via assessments due to the board’s willful and individual
misfeasance and malfeasance after sufficient warning!

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 More Board Misdeeds

Section 18 (d) (ii)

In addition to, and not in limitation of, any other rights the Association
may have, if any Unit Owner does not comply with the requirement
made by the board of directors pursuant to subparagraph (d) (i) above,
the Association, upon fifteen (15) days written notice (during which
period the Unit Owner may perform the required act or work without
further liability), may perform such required act or work at the Unit
Owner’s sole cost. Such cost shall be an assessment and a lien against
the Unit as provided herein. The Association shall have all the right
necessary to implement the requirements mandated by the Board
pursuant to subparagraph (d) (i) of this Paragraph, including, but not
limited to, a right of entry during reasonable hours and after reasonable
notice to the Owner or Occupant of the Unit, except that access may be
had at any time without notice in an emergency situation.

FACT FIVE

Despite several legal warnings, the OBL board after first violating
Section 18 (d) (i) of the Declaration by demanding owners replace water
heaters that cost in excess of $300, continue to violate the law by
instituting fines of $400 per month to OBL owners.

Such fines are not only unreasonable, but were instituted without the
provision of proper due process notices that are legally obligated to be
sent to each owner giving them the right to appeal such invalid fines.

Instead, the OBL board automatically has imposed such fines despite
the provisions of Section 18 (d) (ii) of the Declaration that allows them to
enter a unit, according to law, and make the necessary repairs or
installations required by law.

The Declaration allows for such installation, if under $300, and the
ability for the association to assess such charges as a lien against the
owner’s unit.

A monthly fine that exceeds the $300 limit is an effort by the OBL board
to further harass owners that question the legitimacy of their actions and
also assist them in claiming revenue or attempting to collect revenue not
legally owed to the association.

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 Conclusion

The actions of the OBL Board of Directors in carrying out an

unlawful resolution and then compounding their illegal acts by
imposing grossly unreasonable fines against owners are yet
another example of an out-of-control COA board.

Runaway boards pose many problems for condo owners. Not only
do their actions infringe on the personal liberties and rights of
residents and homeowners, but they also impose unnecessary
liability for all members of the association.

Challenging homeowners to sue them rather than remedying the

unlawful acts, is an invitation to not only lawsuits, but to massive
court judgments.

The remedy for homeowners is to vote current board members off

the board and then hold them personally liable for the willful
violations of law and the declaration. Not to do so sanctions the
unlawful behavior and creates a form of Russian Roulette that
encourages a pay me later rather than a correct me now attitude
that can come home to roost in later months or years and place
each owner in jeopardy of substantial financial loss.