Another Successful Legal Symposia is in the books!

#ICYMI [In case you missed it]

Another Successful Epsten, APC Legal Symposia is in the books!

Authored by Jen Serrano, Sr. Marketing Manager

Photography and editing by Leah Eklof, Marketing Assistant

(From left to right) Pejman D. Kharrazian, Esq., Rhonda R. Goldblatt, Esq., Kieran J. Purcell, Esq., William S. Budd, Esq., Emily A. Long, Esq., and Susan M. Hawks McClintic, Esq., at the Coachella Valley Symposium.

It’s a wrap! We had another successful Symposia season and are thankful to everyone who attended. Here is a quick recap of what happened at our 2024 Symposia in case you couldn’t make it. Overall, 900+ board members, community managers, and industry partners attended our Coachella Valley and San Diego Symposia. We delivered timely, relevant, and up-to-date legal education impacting community associations.

Our Symposia fosters collaboration and new networking opportunities for our attendees. They can ask general legal-related questions to one of our attorneys, network with exhibitors, and build meaningful connections with fellow professionals. Epsten, APC, continues to be at the forefront of legal education for community associations, and its Symposia are some of the most attended community association events in Southern California. It is also important to highlight that our event offers 2 CEUs from the California Association of Community Managers (CACM) and 5 CEUs that complete the requirement for the CMCA certification offered by the Community Association Managers International Certification Board (CAMICB).

Interview with Marisha Lou from Keystone Pacific: “I’ve been in management for 33 years, and I attend every year because it’s well worth it for any association manager or assistant manager or even a realtor that does leasing at community properties. It’s great information!“

(From left to right) Shareholder Pejman D. Kharrazian, Esq. and Senior Attorney Emily A. Long, Esq. presenting Case Law Update at the Coachella Valley event.

By popular demand, our content does a deep dive into the legislative updates based on the annual Bills signed by the Governor, as well as the key case law from the year relevant to community associations. Here are some quick links to the Statutes – New or Newly Amended. You may find these on our website under the Laws & Statutes tab / Civil Codes:

California Civil Code (Civ. Code)

California Civil Code (Civ. Code): Davis-Stirling Act

California Corporations Code (Corp. Code)

§7510. Member Meetings
§7512. Determination of Quorum

(Left) Shareholder and new CAI-San Diego President Susan M. Hawks McClintic, Esq. and (right) Mike Cruz, Administrative Assistant, holding the famous and acclaimed Epsten, APC 2025 Community Association Law Resource Book

In addition, Kieran J. Purcell, Esq. spoke about updates on The Corporate Transparency Act (CTA). With all the back-and-forth on the CTA, board members and managers have really had to stay up to date with the most recent updates. Our firm has been closely tracking the CTA, and you can click here to sign up for our CTA Legal Alerts.

Kieran J. Purcell, Esq., Managing Shareholder of Epsten, APC, speaking to over 600 attendees at our San Diego Symposium.

Kieran J. Purcell, Esq., and Susan M. Hawks McClintic, Esq., also spoke on the 2024 Legislative Update. They discussed Bill AB 2114, which allows civil engineers to be added to the qualified list of inspectors who conduct mandatory inspections of balconies. Both attorneys also spoke on matters regarding elections, SB 900 on repairs and maintenance, and other relevant updates in the community association law.

Interview with Dominique Albrecht, Chief Administrative Officer for Rancho Santa Fe Association: “Today we loved the sessions, such great information on new case law, the latest and greatest on what’s happening on the legislative front and then just really awesome breakout sessions where we could hear from others in the industry about what their facing and get great advice as well.”

BREAK IT DOWN > Legal Discussions

Content tailored to Community Managers and Board Members

You may find your next brilliant idea for your community association at one of our Legal Discussions. Attendees get to share thoughts and concerns directly with our attorneys on matters such as insurance, senior communities and fair housing, amending governing documents, litigation, and elections & recalls (Election Process Timeline and Election by Acclamation Process Timeline), and meetings.

Industry partners harness the power of new products, services and expertise for community associations

Symposia exhibitors have the unique opportunity to showcase their company’s products, services, and expertise to a targeted audience of community leaders and industry professionals. This event allows for valuable networking, strengthening connections, and fostering new partnerships and business opportunities. Our diversified exhibitors are ahead of the game providing attendees great giveaways and special offers to Symposia attendees. This year, vendor categories included:

Accounting, Architect, Backflow Services, Bank, Construction Managements, Door/Gate, FHA, Foundation Repair, Furniture, General Contractor, Inspector of Elections, Insurance, Landscape, Leak Detection, Maintenance, Meter, Painting, Pest Control, Pool, Refuse, Reserve Study, Restoration, Roofing, Security, Solar, Towing, Tree Care. We are always in search of new types of vendors to join our repertoire.

If you are looking to become a sponsor for next year, click here to connect with us.

*Disclaimer: due to event capacity and fairness to our clients, Epsten, APC is unable to accept management companies or other community association law firms to exhibit at our event.

A Big THANK YOU!

A huge shout out to our beverage partner CM2 & Associates for providing beverages for our San Diego Symposium.

San Diego Beverage sponsor, Annie Wyland from CM2, Inc. networking with prospects.

This event is also possible thanks to our Premier and Standard sponsors at both San Diego and Coachella Valley, we thank you! Our 2024 Symposia season could not have happened without you. To find out more about our exhibitors and the services they offer, check out the links below.

Coachella Valley

San Diego

(PREMIER)

BEHR
Cartwright Termite & Pest Control, Inc.
EmpireWorks Reconstruction
First Citizens Bank
Leak Control Services

(STANDARD)

AMS Paving, Inc.
Banc of California
California Association of Community Managers (CACM)
C.L. Sigler & Associates, Inc.
Click2Bind Insurance Services, Inc.
Conserve LandCare
Frazier Pest Control
Harvest Landscape Enterprises, Inc.
Newman Certified Public Accountants, PC
NEXTIER Insurance Services
NLB Consulting Election Services
NPG Asphalt
O’Connell Landscape Maintenance
PatioShoppers
SCT Reserve Services
Sherwin Williams

(PREMIER)

(STANDARD)

Accurate Termite & Pest Control
Bald Eagle Security Services, Inc.
Banc of California
Berg Insurance Agency in Partnership with LaBarre/Oksnee
California Sub-Meters
Click2Bind Insurance Services, Inc.
Enhanced Landscape Management
First Citizens Bank
Four Seasons Tree Care
Gemini Insurance Agency
Global Disposal
Harvest Landscape Enterprises, Inc.
Kirk Miller Insurance Agency, Inc.
LaBahn’s Landscaping
McCormick-JWC Construction & Consulting
MeterNet, LLC
NPG Asphalt
O’Connell Landscape Maintenance
Precision Construction & Painting
Premier Roofing CA, Inc.
Proform Interiors
Rayco Exteriors
SCT Reserve Services
Sherwin Williams Paint
Southern Cross Property Consultants

To Our Staff and Attorneys…

This wouldn’t be a proper recap without thanking our staff and attorneys who helped put on the symposia events. Here are just some faces behind the scenes working hard.

>> Click here for a Coachella Valley recap video

>> Click here for San Diego recap video

>> Click here for a behind the scenes video

Looking Ahead: 2025 San Diego & Coachella Valley

Participants left with new knowledge, lasting friendships and connections, and a renewed sense of energy to tackle problems in 2025. Nevertheless, a new Symposium season will be arriving soon. If you are looking for more information for next year’s symposia, click here to be updated when we release dates.

Speakers at San Diego Symposium from left to right; Jillian M. Wright, Esq., Kieran J. Purcell, Esq., Susan M. Hawks McClintic, Esq., Pejman D. Kharrazian, Esq., Jon H. Epsten, Esq., Rhonda R. Goldblatt, Esq., Jacquelyn E. Quinn, Esq., and Joseph A. Sammartino, Esq.

Updates on The Corporate Transparency Act as of 1/30/2025

By Lindsay J. Anderson, Esq.

*This article is an update to the previous versions:

CORPORATE TRANSPARENCY ACT REPORTING REQUIREMENTS REMAIN PAUSED

On January 23, 2025, the U.S. Supreme Court stayed a nationwide injunction halting enforcement of the Corporate Transparency Act (Act) in Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland. This decision appears at first glance to require that common interest developments comply with the Act. However, Texas Top Cop Shop is not the only case currently making its way through the judicial system. A different federal judge in Texas imposed a similar nationwide injunction in Smith v. U.S. Department of the Treasury. The Smith nationwide injunction still remains in place.

On January 24, 2025, FinCEN issued an alert confirming that despite the U.S. Supreme Court’s action in Texas Top Cop Shop, while the Smith order remains in place, reporting companies are not currently required to file beneficial ownership information (BOI) reports with FinCEN and are not subject to liability for failure to do so. That said, FinCEN reiterated that reporting companies may continue to voluntarily submit beneficial ownership information reports.

At present, the Smith nationwide injunction means the reporting requirements for applicable common interest developments are currently “on hold” and thus applicable common interest developments are not currently subject to liability for failure to meet filing deadlines.

Common interest development boards should continue to remain informed and prepared to act quickly to meet filing deadlines as needed. Our office will continue to provide updates as they arise.

Status of CAI’s CTA Lawsuit, Lobbying and Advocacy Efforts

As you may be aware, the Community Associations Institute (CAI) filed a lawsuit challenging the application of the Act on common interest developments. CAI requested a preliminary injunction but that request was denied by a federal judge. CAI appealed and the government’s response to CAI’s appeal is due on January 31, 2025.

In addition, CAI is utilizing lobbying and advocacy efforts in Washington D.C. to encourage legislators to either repeal the Act or exempt common interest developments from the Act’s reporting requirements. H.R. 425 and S. 100 are two bills that were introduced to repeal the Act.

If you are interested in assisting with CAI’s efforts, visit CAI’s Action Center for information about how to contact your Members of Congress and Senators to ask them to support H.R. 425 and S. 100.

For additional information and updates regarding the Act and CAI’s efforts to repeal the Act or exempt applicable common interest developments visit www.caionline.org/CTA.

Five Strategies for Better Community Association Communication

By Rhonda R. Goldblatt, Esq.

Senior Attorney

Community associations benefit from an informed, educated membership. With that in mind, please find five strategies for improving community association communication below:

1. Check Your Calendar. Community associations are required to distribute various documents from time to time, including annual budgets, policy disclosures, ballots and more. Association governing documents also typically require holding various events, such as annual membership meetings, regular board meetings, and the like. Trying to keep track of it all can be dizzying. Therefore, it is helpful to calendar relevant deadlines and events in an automated, digital system, to help ensure that member communications go out on time.

2. Preferences Matter. Civil Code section 4041 requires associations to solicit members’ preferred delivery method for receiving certain notices on an annual basis. Members have the option of receiving notices via a mailing address and/or a valid email address. Members can also provide the contact information of their legal representative. Associations must in turn deliver certain notices in accordance with members’ preferred delivery method. Members’ entitlement to select their preferred delivery method, in conjunction with different distribution requirements for different types of notices (i.e., general versus individual delivery) can make life complicated for managers. Again, automation can help, from software programs that either track member preferences or allow those preferences to be logged and changed easily, to spreadsheets that keep member information organized. Associations can also regularly remind owners of their entitlement to receive association notices via email, which many members may prefer for ease of access and may in turn reduce the association’s administrative burden.

3. Be Wary of Social Media. Associations might view social media as an easy, low effort means of distributing information to members. However, if a social media platform allows members to comment and post content, associations may in turn be forced to constantly monitor that platform for divisive or defamatory content. Therefore, one-sided association communication mechanisms like email blasts and newsletters that do not allow members to reply all, post, or comment may be preferable.

4. Prioritize Appropriately. Members frequently communicate with their associations about various concerns, from maintenance issues to complaints about neighbors. It is not uncommon for a minority of members in a community to communicate a lot, sending the association emails, making telephone calls, and speaking at board meetings. However, boards have a fiduciary obligation to act in the best interests of the entire community, not just a single member. As such, while boards should listen carefully to member concerns, boards must also triage and address member concerns according to the needs of the entire community. That may mean other pressing needs take priority.

5. Delivery is Everything. Members sometimes send angry, volatile communications to association representatives, and it can be extremely tempting to respond in kind. However, written communication can last forever, and non-privileged correspondence can easily become an exhibit in a subsequent lawsuit. Therefore, it may be wise to pause before replying and imagine a judge or jury as the audience of any given communication rather than the actual recipient. Associations must be the adult in the room, and a professional, measured tone is always best.

When In Doubt, Check It Out: Homeowners’ Rights to Inspect Association Records

By Victoria R. Minor, Esq.

Attorney

In California, homeowners and members of homeowners associations (HOAs) have specific rights to inspect and copy association records. These rights are established under various sections of the California Civil Code and the California Corporations Code.

Under California Civil Code Section 5205, association records must be made available for inspection and copying by any member or their designated representative. The records should be accessible at the association’s business office or another agreed-upon location within the common interest development. If no agreement is reached, the association can deliver copies of the records to the member. Cal. Civ. Code §5205.

However, like many things in life, the inspection of records comes at a cost. The association may charge for the direct and actual costs of copying and mailing the documents, and for the time involved in redacting certain information, up to specified limits (an amount not in excess of ten dollars ($10) per hour, and not to exceed two hundred dollars ($200) total per written request). Cal. Civ. Code §5205(g).

What Records Can Be Inspected?

Members have the right to inspect records for the current fiscal year and the previous two fiscal years. Cal. Civ. Code §5210(a)(1). Minutes of member and board meetings are permanently subject to inspection. Cal. Civ. Code §5210(a)(2).

Members also have the right to inspect and copy membership lists so long as a written demand is made upon the association to do so. Cal Corp Code § 8330. Membership lists are records maintained by the association which include names, property addresses, mailing addresses, and email addresses of members that have not opted out of providing such information. Cal. Civ. Code §5200(a)(9). Once the written demand to inspect the membership list has been made, the association then has five business days to make the membership list available for inspection and copying. Cal Corp. Code § 8330.

However, certain information may be withheld or redacted by the association. This includes information likely to lead to identity theft or fraud, privileged information, and records that compromise individual privacy. Cal. Civ. Code §5215. Rather than providing a requesting member a copy of the membership list, Corporations Code Section 8330(c) allows the association to provide the requesting member an alternative method of contacting other members. Additionally, the use of association records for commercial purposes or any purpose not related to a member’s interest is prohibited. Cal. Civ. Code §5230.

What If The Association Withholds Access To Records?

If an association unreasonably withholds access to records, the member can bring an action to enforce their rights. Courts may award reasonable costs and expenses, including reasonable attorney’s fees to the member, and may impose a civil penalty of up to $500 for each denied request. Cal. Civ. Code §5235(a).

Conclusion

In summary, California law provides robust rights for homeowners to inspect and copy HOA records, with specific provisions to ensure transparency while protecting sensitive information. These rights are enforceable through legal action if necessary, ensuring that members can access the information they need while maintaining privacy and security.

Updates on The Corporate Transparency Act as of 12/27/2024

By Lindsay J. Anderson, Esq.

*This article is an update to the previous versions:

FIFTH CIRCUIT COURT OF APPEALS REINSTATES NATIONWIDE PRELIMINARY INJUNCTION OF THE CORPORATE TRANSPARENCY ACT

On December 26, 2024, the full panel of the Fifth Circuit Court of Appeals (“Fifth Circuit”) vacated the December 23, 2024 decision by a three judge panel to stay the preliminary nationwide injunction against the Corporate Transparency Act (“Act”) created by the December 3, 2024 ruling in Texas Top Cop Shop, Inc., et al. v. Garland, et al. The Fifth Circuit Court of Appeals court order can be read here. Please note this order simply reinstates the initial preliminary injunction and is still not a final ruling on the Act’s constitutionality.

At present, the Fifth Circuit’s order means the reporting requirements for applicable community associations are currently “on hold” and applicable community associations are not currently required to meet the January deadlines for filing.

The Fifth Circuit is expediting the government’s appeal and additional developments are imminent. Our office will continue to provide updates as they arise. However, community association boards should continue to closely monitor the developments and remain prepared to meet applicable filing deadlines if the filing requirements are reinstated.

For additional information and updates on the Texas Top Cop Shop case appeal and its applicability to the Act visit www.caionline.org/CTA.

Updates on The Corporate Transparency Act as of 12/24/2024

By Kieran J. Purcell, Esq.

*This article is an update to the previous versions:

BOI REPORTING DEADLINE EXTENDED BY FINCEN

On December 23, 2024, the Fifth Circuit Court of Appeals granted a stay over the preliminary nationwide injunction against the Corporate Transparency Act (Act) created by the December 3, 2024 decision in Texas Top Cop Shop, Inc., et al. v. Garland, et al. The Fifth Circuit Court of Appeals also issued an order reinstating the January 1, 2025 beneficial ownership information (“BOI”) reporting deadline.

On December 24, 2024, the Financial Crimes Enforcement Network (FINCEN) extended reporting deadlines. Notably, FINCEN extended the reporting deadline for reporting companies created or registered to do business before January 1, 2024. These companies have until January 13, 2025, to file their initial BOI reports.

FINCEN also extended other BOI reporting deadlines. Information about these additional extensions can be found at https://www.fincen.gov/boi.

The Fifth Circuit Court of Appeals court order can be read here. Please note this order just stays the initial preliminary injunction and is still not a final ruling on the Act’s constitutionality. To that end, the Fifth Circuit’s order directed the appeal in this lawsuit be expedited to the next available oral argument panel.

CAI continues to track federal courts for challenges of the Act and is in contact with the United States Department of Treasury about the Act. For additional information and updates on the applicability to the Act visit www.caionline.org/CTA.

Updates on The Corporate Transparency Act as of 12/23/2024

By Kieran J. Purcell, Esq.

*This article is an update to the previous versions:

FIFTH CIRCUIT COURT OF APPEALS STAYS PRELIMINARY INJUNCTION OF THE CORPORATE TRANSPARENCY ACT

On December 23, 2024, the Fifth Circuit Court of Appeals granted a stay over the preliminary nationwide injunction against the Corporate Transparency Act (Act) created by the December 3, 2024 decision in Texas Top Cop Shop, Inc., et al. v. Garland, et al. The Fifth Circuit Court of Appeals also issued an order reinstating the January 1, 2025 beneficial ownership information (“BOI”) reporting deadline.

The Fifth Circuit Court of Appeals court order can be read here. Please note this order just stays the initial preliminary injunction and is still not a final ruling on the Act’s constitutionality. To that end, the Fifth Circuit’s order directed the appeal in this lawsuit be expedited to the next available oral argument panel.

At present, the Fifth Circuit’s order means all reporting companies created or registered to do business before January 1, 2024, have until January 1, 2025, to file their initial BOI reports.

CAI continues to track federal courts challenges of the Act and is in contact with the United States Department of Treasury urging an administrative delay be issued due to the chaos and confusion created by these recent court rulings, Congress’s decision not to take legislative action to extend the filing deadline, and the end of year holidays.

For additional information and updates on the Texas Top Cop Shop case appeal and its applicability to the Act visit www.caionline.org/CTA.

You’ve Been Served – An Article to Supplement Epsten, APC’s Litigation Checklist

By Hannah I. Hughes, Esq.

“You’ve been served” are three little words that no one wants to hear. But what exactly does that mean and what should you do when you are served with a lawsuit?

Our firm has created a checklist for when you have been served with a lawsuit, which can be located here: https://www.epsten.com/youve-been-served-lawsuits-checklist/. This article is intended to serve as a supplemental article to that checklist.

If you are served with a lawsuit, it is important to note the time, date, and method of how the lawsuit was served on you. It is important to immediately provide this information to your legal counsel, along with copies of all documents that were served on you, so that they can determine first whether service was proper and second when a response to the lawsuit is due. For example, documents served in-person have a thirty (30) day deadline to file a response while documents served via mail will provide you with an additional two (2) days to respond. If the Association does not respond by the deadline, they may not be able to protect their interests in the lawsuit.

Once you have provided your legal counsel with a copy of the documents and a detailed explanation of the date, time, and method of service, you should also provide the same to your insurance carrier. Your insurance carrier is the only one that can determine whether there is insurance coverage for the claim. Among the benefits of tendering the lawsuit to your insurance carrier is that they could accept the claim and provide defense counsel for the Association. This means that the association’s legal fees and costs would be covered by your insurance carrier.

After providing your legal counsel and your insurance carrier with a copy of the documents that you were served with, along with a detailed explanation of the date, time, and method of service, it is important that you preserve potential evidence related to the lawsuit. The Board of Directors, the Community Association Manager, and any and all employees have a duty to preserve related evidence once a lawsuit is filed. This means that you cannot delete, remove, or otherwise destroy related evidence including, but not limited to, emails, Board Meeting Minutes, Invoices, letters, photographs, video, etc. Your attorney likely will send a letter to notify affected parties of their duty to preserve evidence.

In addition to preserving potential evidence, you must also preserve the attorney-client privilege. The attorney-client privilege serves to protect client communication to or from their attorney. This includes oral or written communications whether in person, over the phone, or via email. However, the privilege only applies if it is a communication to or from your attorney. That means you should not forward any emails, documents, or other correspondence from your attorney to anyone who is not the Community Association Manager or a member of the Board of Directors. Additionally, you should not discuss the case with anyone who is not a member of the Board of Directors or your Community Association Manager. Remember, the client holds the privilege; this means the client can waive that privilege by sharing information with a third party. It is important that you do not waive this privilege by including a third party who is not subject to the privilege.

Finally, some owners within the association may request notice or information regarding the lawsuit so that they can determine whether they need to inform or notify any potential buyers or other third parties. Although the association is not required to provide this information, your attorneys can prepare a letter to the membership regarding the litigation that is informative but does not waive the attorney-client privilege.

While the three little words “you’ve been served” may not be as sweet as “I love you”, they should be taken just as seriously. Be sure to utilize the checklist we have provided to assist you if you ever hear those three little words.

Updates on The Corporate Transparency Act as of 12/9/2024

By Kieran J. Purcell, Esq.

*This article is an update to the previous versions:

APPEAL OF TEXAS FEDERAL COURT RULING ENJOINING ENFORCEMENT OF THE CORPORATE TRANSPARENCY ACT

On December 5, 2024, the Government appealed the December 3, 2024, decision of the U.S. District Court for the Eastern District of Texas in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. which issued a preliminary nationwide injunction against the Corporate Transparency Act (Act).

Shortly thererafter, FinCEN posted an alert on its website announcing a stay on the January 1, 2025, beneficial ownership information (“BOI”) reporting deadline pending determination of the appeal. In its alert, FINCEN noted “in light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”

As previously reported, the court’s order is a preliminary injunction only. While it temporarily pauses enforcement of the Act on a nationwide basis, enforcement could resume if the injunction is later reversed.

For additional information about the Texas Top Cop Shop case and its applicability to the Act visit www.caionline.org/CTA.

Updates on The Corporate Transparency Act as of 12/4/2024

By Kieran J. Purcell, Esq.

*This article is an update to the previous versions:

TEXAS FEDERAL COURT ENJOINS ENFORCEMENT OF THE CORPORATE TRANSPARENCY ACT

On December 3, 2024, the U.S. District Court for the Eastern District of Texas published a decision in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. issuing a preliminary nationwide injunction against the Corporate Transparency Act (Act).

The court granted Plaintiff’s request for a preliminary injunction, blocking the U.S. Department of Treasury from enforcing the Act or its beneficial ownership information (BOI) reporting requirements, ruling “Neither may be enforced, and reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.”

On December 4, 2024, the Community Association Institute (CAI) stated the court’s preliminary injunction applies nationwide, halting enforcement and compliance of the Act’s beneficial ownership reporting requirements across the entire United States. Notably, CAI’s legal team stated it believes the injunction applies to all common interest developments incorporated in the United States.

The court’s order is a preliminary injunction only. While it temporarily pauses enforcement of the Act on a nationwide basis, enforcement could resume if the injunction is later reversed. As of this writing the federal government has not issued a public statement so it is unclear if it intends to appeal the court’s decision.

For additional information about the Texas Top Cop Shop case and its applicability to the Act visit www.caionline.org/CTA.