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Defending HOA Governance Litigation Under D&O Policies: Scope of Coverage, Theories of Liability, Key Takeaways
Individual and Class Claims Over Service Animals, Short-Term Rentals, Breach of Fiduciary Duty, Reserve Allocations, Drones, and More
About the Course
Introduction
This CLE webinar will offer guidance to insurance defense lawyers defending homeowner associations (HOAs) and HOA management companies under directors and officers (D&O) insurance. The program will address recurring and increasingly prevalent fact patterns, the theories of liability they generate, the limits of coverage, and special concerns arising from this type of litigation.
Description
D&O insurance is designed to protect HOA members from personal liability for decisions they make while on the board. Industry sources estimate about 370,000 townhome, condominium, and single-family HOAs in the U.S., representing an estimated 40 million households. Additionally, about 8,500-10,000 HOA management companies serve the HOA sector. More people than ever before live in HOA communities, so as one HOA news site quips, "That's a lot of people subject to rules, fines, and board decisions that are increasingly landing in court."
The rise in claims against individual HOA board members and HOA management companies has been attributed to changes in homeowner expectations, statutory changes in Florida, Texas, California, and Arizona, and increased attention from the plaintiff's class action bar.
Counsel appointed by insurers to defend HOAs and HOA management companies, whether in individual cases or class actions, have to navigate substantive defense issues while understanding the limits of coverage. Discovery can bring to light fundamental flaws in the governing documents or how they have been interpreted over time. Many disputes that seem local and fact-based have national and significant implications: drones, claims over service and emotional support animals (Fair Housing Act, ADA, local laws), short-term rentals, assessments and reserves (breach of fiduciary duty), selective/unfair/non-enforcement of covenants (parking, architectural guidelines, and landscaping, etc.).
Listen as this esteemed panel offers insights and practical tips for insurance defense lawyers defending HOAs and HOA management companies under D&O policies.
Presented By
Ms. McManis is proficient in assessment collections, covenant enforcement, governing document interpretation, and general counsel matters, she offers adept advice on construction contracts, lien issues, and subcontractor concerns. Ms. McManis also excels in representing housing cooperatives and creditors in commercial law litigation involving the FDCPA, FCRA, and TCPA. She frequently trains new Board members and addresses community audiences on homeowner association topics.
Mr. Ralph’s practice focuses on the representation of condominium, homeowner (HOA), and townhome community associations in both the prosecution and defense of lawsuits. He also has extensive background in general insurance defense. Mr. Ralph excels at advising clients on litigation strategies and reducing complex legal matters to understandable terms. He has skillfully represented clients though all phases of litigation including mediation, arbitration, bench and jury trials. Mr. Ralph has successfully handled a wide variety of matters, ranging from multi-million-dollar construction defect cases to defense of individual board members in breach of fiduciary duty lawsuits. He is licensed to practice law in Illinois and is a member of the Federal Bar. Further, he is an active member of the American Bar Association, the Chicago Bar Association, the Small Business Advocacy Council, and the Community Associations Institute (CAI).
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Thursday, August 13, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. D&O coverage contrasted to other coverages held by HOAs
II. Exclusions
III. Confronting fundamental flaws in governing documents
IV. Types of disputes
A. Selective enforcement disputes
B. Financial transparency disputes
C. Fair housing compliance
D. Environmental and sustainability mandates
E. Data privacy and cybersecurity
V. Special concerns
A. High emotion in such disputes
B. Dealing with pro se litigants
C. Covered vs. uncovered claims
D. Discovery
E. Fee shifting
F. Class actions
VI. Key takeaways
The panel will address these and other key issues:
- What happens when the governing documents are materially defective?
- What happens when a board policy decision results in property damage or bodily injury?
- Are board members covered for their decisions after they rotate off the board?
