All posts by Steve Tinnelly

Inspection of Ballots

Civil Code Section 5125 provides in pertinent part that:

“If there is a recount or other challenge to the election process, the inspector or inspectors of elections shall, upon written request, make the ballots available for inspection and review by an association member or the member’s authorized representative.”

This language does not explicitly address whether an association is required to permit the inspection of ballots in the absence of a recount or formal challenge to the election process brought by a member of the association. HOA industry attorneys take varying positions with respect to this issue and whether an association member has a right to inspect the ballots if there is no recount or challenge brought against the association by the member pursuant to Civil Code Section 5145. (See also “Legal Challenge to Election.”)

“Association Election Materials” as “Association Records”
Civil Code Section 5200 provides an association’s members with rights to inspect and copy specified “association records.” (See “Records Subject to Inspection.”) Returned ballots, signed voter envelopes, the voter list of names to whom ballots were to be sent, proxies, and the candidate registration list constitute “association election materials” that are “association records” subject to inspection. Signed voter envelopes may be inspected “but may not be copied.” (Civ. Code § 5200(c).)

Maintain Association Election Materials for 1 Year – An association is required to maintain association election materials for one year after the date of the election. (Civ. Code § 5200(c).)

Fees for Inspection
The Davis-Stirling Act does not address whether a member is required to pay any fees associated with the inspection of ballots (i.e., any fees charged by the inspector of election in making the ballots available for inspection).

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Legal Challenge to Election

Where the procedural requirements applicable to an association’s election are violated by the association, a member of the association may bring a civil action against the association for declaratory or equitable relief. (Civ. Code § 5145(a).) Election challenges may be brought in either superior court or, if the amount of the demand does not exceed the jurisdictional limits of smalls claims court, in small claims court. (Civ. Code § 5145(c).)

Challenge Period: 1 Year
The period within which a member may bring an action is one (1) year from the date the election violation occurred or one (1) year from the date the inspector of elections notifies the board and membership of the election results, whichever is later. (Civ. Code § 5145(a).) This time period coincides with the length of time that the ballots are required to be kept in the custody of the association’s inspector of elections following the tabulation of the vote and before custody of the ballots may be lawfully transferred to the association. (Civ. Code § 5125.)

Remedies

Civil Penalties – Where a member prevails in the action against the association, the court may impose a civil penalty against the association of up to five hundred dollars ($500) for each violation, except that each identical violation is subject to only one (1) penalty if the violation affects each member of the association equally. (Civ. Code § 5145(b).)

Costs & Attorney’s Fees – Where a member prevails in the action against the association, the member is “entitled to reasonable attorney’s fees and court costs.” (Civ. Code § 5145(b).) If a member prevails in a civil action brought in small claims court, the member is entitled to court costs and “reasonable attorney’s fees incurred in consulting an attorney in connection with the civil action.” (Civ. Code § 5145(b).)

If the association prevails, the association is entitled to recover its “costs” only if the “court finds the action to be frivolous, unreasonable, or without foundation.” (Civ. Code § 5145(b).) However, “costs” does not include attorney’s fees; even where the court finds the action to be frivolous, the association is not entitled to recover its attorney’s fees when it prevails in the action:

“While we agree that the trial court’s conclusion that [the member’s] decision to file this lawsuit was indeed frivolous, we must also agree with [the member] that the plain language of [Section 5145] does not support an award of attorney fees to [the association], as unfair at that may seem.” (That v. Alders Maintenance Corporation (2012) 206 Cal.App.4th 1419, 1428.)

Whether or not the member has prevailed in the action against the association is a determination made at the end of the lawsuit.  If a member secures only interim relief (e.g., a preliminary injunction), that does not, in itself, entitle the member to an award of her attorney’s fees. (Artus v. Gramercy Towers Condominium Association (2018) 19 Cal. App. 5th 923.) 

Void Results of Election – Where the court finds that the association violated the required election procedures, a court shall void the results of the election, unless the association establishes, by a preponderance of the evidence, that the association’s noncompliance did not affect the results of the election. The findings of the court must be stated in writing as part of the record. (Civ. Code § 5145(a).)

Inspection of Ballots
Where an action is filed to challenge the election process, the association’s inspector(s) of elections is required, upon written request, to make the ballots available for inspection by the member or the member’s authorized representative. (Civ. Code § 5125; See also “Inspection of Ballots.”)

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That v. Alders Maintenance Corporation

(2012) 206 Cal.App.4th 1419

[Elections; Legal Challenges] Where a HOA prevails in an action brought against it on the basis of alleged election violations, the HOA is not entitled to recover its attorney’s fees even where the action is found to be frivolous.

COUNSEL
Dinh Ton That, in pro. per., for Plaintiff and Appellant.
Law Offices of Nicholas T. Basakis and Nicholas T. Basakis for Defendant and Respondent.

OPINION

MOORE, J. —

Plaintiff Dinh Ton That disagreed with the results of a recall election conducted by his homeowners association. He first brought a small claims action, then a writ of mandate, and then the instant action, asserting violations of association rules and the relevant statutory scheme. Defendant Alders Maintenance Association demurred to his complaint, arguing the statute of limitations had run on his first cause of action. The court sustained the demurrer. Plaintiff amended his complaint, adding a second cause of action under Business and Professions Code section 17200. Defendant again demurred, arguing a number of reasons why such a claim could not be maintained. The court sustained the second demurrer without leave to amend. [1422] The court also awarded defendant attorney fees of approximately $15,000. Plaintiff argues this should be reversed because the relevant statute does not specify that prevailing associations are entitled to attorney fees.

(1) In the unpublished portion of this decision, we agree with defendant that the one-year statute of limitations bars plaintiff’s first cause of action. In the published portion, we agree with defendant that in the present context, a homeowners association is not a “business” within the meaning of Business and Professions Code section 17200. We agree with plaintiff, however, that the relevant statute does not permit the association to recover attorney fees, despite our agreement with the trial court’s conclusion that the action was frivolous.

I. FACTS AND PROCEDURAL HISTORY

Plaintiff is a homeowner in The Alders, a 248-unit condominium complex in Irvine. The Alders is maintained and governed by defendant. In early 2009, a number of homeowners, including plaintiff,[1] attempted a recall of the sitting board of directors. The recall election took place on February 9. It did not, however, achieve a quorum, which required 50 percent of the membership to be present in person or by proxy. While 124 members were required for a quorum, 119 members were present at the meeting. A motion was made by director Joseph Brockett to close the meeting, and the motion was seconded and approved. According to defendant, prior to the meeting’s closure, no motion was made to adjourn the meeting to a later time. One member did raise the question of an adjournment after the meeting was closed, but the closure of the meeting prevented further official business. The closure of the meeting without adjournment[2] essentially concluded the recall effort.

On February 26, plaintiff filed a small claims action seeking $500 as a civil penalty. He alleged defendant and certain individuals “wrongfully … required a quorum” and failed to give the members present an opportunity to adjourn the meeting. Plaintiff also sought injunctive relief that would require defendant to bring the 119 proxies and ballots to the court hearing and require counting by an independent third party. On March 6, the small claims court filed an order stating that it had determined “Small Claims court does not have jurisdiction to monitor elections.” Plaintiff filed a dismissal without prejudice on April 8.

[1423] On March 9, plaintiff filed a verified “Emergency Petition for Peremptory Writ of Mandate in the First Instance as well as for an Alternative Writ” in superior court. He sought a court order directing defendant to conduct the recall election at an adjourned meeting with a smaller quorum. On March 20, the court denied the petition as well as plaintiff’s request for reconsideration.

Plaintiff appealed on May 19, 2009. (That v. Alders Maintenance Association (Oct. 1, 2009, G042070) [app. dism.].) That case was briefed, but while the matter was pending, defendant conducted its regular annual election on July 29. Defendant filed a motion to dismiss the appeal, which we granted on October 1, 2009, on the grounds that it was moot. The remittitur was issued on December 1.

Once back in the trial court, plaintiff sought leave to amend his complaint to state a cause of action for “Declaratory, Injunctive Relief and Civil Penalties per [Civil Code] § 1363.09.” In addition to declaratory and injunctive relief (the precise nature of which is unclear), plaintiff sought $2,000 in civil penalties for violating the Civil Code relating to association election laws.

The motion for leave to amend was initially set for hearing on February 1, 2010. On December 21, 2009, at a case management conference, the hearing was continued to March 1, 2010, at the request of defendant’s counsel on grounds of medical necessity. At that hearing, plaintiff acknowledged that his claim was governed by a one-year statute of limitations.

On March 1, the court denied the motion for leave to amend, finding that a writ petition was not a pleading which was subject to amendment under Code of Civil Procedure, section 473, subdivision (a)(1). Further, plaintiff had not met the necessary procedural requirements.

Plaintiff then filed the instant action on March 5, 2010, nearly 13 months after the February 9, 2009 recall election. On April 28, he filed a first amended complaint (FAC) which purported to allege “Violation of Article 2 of Chapter 4 of Title 6 of Part 4 of Division 2 of the Civil Code, Including Section 1363.03(b), for Declaratory and Injunctive Reliefs [sic] and Civil Penalties Under Civil Code Section 1369.09.” The FAC sought adjudication of the same issues raised in the writ petition, specifically whether defendant and its agents had acted properly during the attempted recall election on February 9, 2009. Plaintiff sought the court’s decision on a number of “issues [1424] to be decided and permanent injunctions requested.” Plaintiff requested civil penalties under Civil Code section 1363.09, subdivision (b), alleging four violations and $2,000 in penalties. He also requested the court’s decisions be “published” to all members of the association.

Defendant filed a demurrer, arguing the FAC failed to state a claim upon which relief could be granted. Defendant argued that the FAC was time-barred by Civil Code section 1363.09, subdivision (a), which states that a cause of action for violating laws relating to association elections must be brought “within one year of the date the cause of action accrues.” Plaintiff opposed, arguing judicial and equitable estoppel among other reasons why the demurrer should be overruled. The court sustained the demurrer, but granted plaintiff leave to amend to state another cause of action.

Plaintiff then filed his second amended complaint, which purported to state causes of action for “Violation of Article 2 of Chapter 4 of Title 6 of Part 4 of Division 2 of the Civil Code, Including Section 1363.03(b), for Declaratory and Injunctive Reliefs [sic] and Civil Penalties Under Civil Code Section 1369.09, for Violation of [Business and Professions Code] Sections 17200 et seq., for Declaratory and Injunctive Reliefs [sic] and Restitution Thereunder.” The first cause of action was essentially identical to the FAC. The second cause of action alleged defendant violated the unfair competition law (UCL), Business and Professions Code section 17200 et seq.

Defendant demurred to the second cause of action, arguing the facts in this case, specifically, the conduct of an association recall election, did not state a cause of action under the UCL as a matter of law. Defendant also moved to strike the first cause of action, arguing it was identical to the FAC, which had been the subject of a successful demurrer, as well as parts of the prayer for relief. Plaintiff opposed, offering a number of arguments on both the demurrer and motion to strike. The trial court granted the motion to strike and sustained the demurrer without further leave to amend, noting plaintiff had not met the actual injury requirement for claims under the UCL.

On January 10, 2011, the trial court granted defendant’s motion for attorney fees and awarded $15,020.50 pursuant to Civil Code section 1363.09, subdivision (b). The court found some of plaintiff’s actions, including filing a complaint barred by the statute of limitations, “frivolous.” Plaintiff filed his appeal on February 9, 2011, and also sought writ relief, which we denied in case No. G044799.

[1425] II. DISCUSSION

Plaintiff seeks review of the trial court’s decisions to sustain the demurrers to the FAC and SAC (second amended complaint), and to grant attorney fees to defendant.[3]

A. Standard of Review for Demurrers

“In reviewing the sufficiency of a complaint against a general demurrer, we are guided by long-settled rules. `We treat the demurrer as admitting all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law. [Citation.] We also consider matters which may be judicially noticed.’ [Citation.] Further, we give the complaint a reasonable interpretation, reading it as a whole and its parts in their context. [Citation.] When a demurrer is sustained, we determine whether the complaint states facts sufficient to constitute a cause of action. [Citation.]” (Blank v. Kirwan (1985) 39 Cal.3d 311, 318 [216 Cal.Rptr. 718, 703 P.2d 58].) We review the trial court’s decision de novo. (McCall v. PacifiCare of Cal., Inc. (2001) 25 Cal.4th 412, 415 [106 Cal.Rptr.2d 271, 21 P.3d 1189].)

While a general demurrer admits all facts that are properly pleaded, the “`court does not, however, assume the truth of contentions, deductions or conclusions of law. [Citation.]'” (Soliz v. Williams (1999) 74 Cal.App.4th 577, 584 [88 Cal.Rptr.2d 184].)

B. Relevant Statutory Law

(2) The Davis-Stirling Common Interest Development Act (the Davis-Stirling Act) (Civ. Code, § 1350 et seq.) governs homeowners associations. The Davis-Stirling Act “consolidated the statutory law governing condominiums and other common interest developments…. Common interest developments are required to be managed by a homeowners association (§ 1363, subd. (a)), defined as `a nonprofit corporation or unincorporated association created for the purpose of managing a common interest development’ (§ 1351, subd. (a)), which homeowners are generally mandated to join [citation].” (Villa De Las Palmas Homeowners Assn. v. Terifaj (2004) 33 Cal.4th 73, 81 [14 Cal.Rptr.3d 67, 90 P.3d 1223].)

[1426]  (3) Civil Code section 1363.03 et seq. govern association election procedures. Civil Code section 1363.09 creates a right of action for violation of those procedures: “A member of an association may bring a civil action for declaratory or equitable relief for a violation of this article by an association of which he or she is a member, including, but not limited to, injunctive relief, restitution, or a combination thereof, within one year of the date the cause of action accrues….” (Civ. Code, § 1363.09, subd. (a).) The same section permits a court to void an election if it concludes that election procedures were not followed. (Ibid.)

Civil Code section 1363.09, subdivision (b) (hereafter subdivision (b)) states: “A member who prevails in a civil action to enforce his or her rights pursuant to this article shall be entitled to reasonable attorney’s fees and court costs, and the court may impose a civil penalty of up to five hundred dollars ($500) for each violation, except that each identical violation shall be subject to only one penalty if the violation affects each member of the association equally. A prevailing association shall not recover any costs, unless the court finds the action to be frivolous, unreasonable, or without foundation.”

C. Statute of Limitations on Plaintiff’s Civil Code Section 1363.09 Claim[*]

D. Plaintiff’s Business and Professions Code Section 17200 Claim

(4) Plaintiff’s second cause of action, offered to circumvent the statute of limitations on the first, is under the UCL. The UCL is codified in Business and Professions Code section 17200 et seq. Section 17200 prohibits any “unlawful, unfair or fraudulent business act or practice.” (Italics added.)

We cannot find, and plaintiff does not cite, a single published case[7] in which a homeowners association has been treated as a “business” under the UCL, and we are unpersuaded by plaintiff’s claims in favor of such a reading of the statute. Plaintiff argues that associations are businesses, citing O’Connor v. Village Green Owners Assn. (1983) 33 Cal.3d 790 [191 Cal.Rptr. 320, 662 P.2d 427]. That case is readily distinguishable. In O’Connor, the [1427] California Supreme Court held that an association was a “business establishment” under the Unruh Civil Rights Act (Civ. Code, §51). Treating associations as businesses in that context is consistent with — and indeed, necessary for — fulfilling the fundamental purposes of that statutory scheme, the protection of civil rights.

The UCL’s purpose does not require the same broad construction of the word “business.” “The UCL’s purpose is to protect both consumers and competitors by promoting fair competition in commercial markets for goods and services. [Citation.]” (Kasky v. Nike, Inc. (2002) 27 Cal.4th 939, 949 [119 Cal.Rptr.2d 296, 45 P.3d 243].) An association does not participate as a business in the commercial market, much less compete in it. The dispute here is not related to any activity that might be deemed in the least bit commercial. Indeed, it is solely related to the conduct of association elections, a subject covered thoroughly by the Davis-Stirling Act itself. (Civ. Code, § 1363.03 et seq.)

(5) We do not foreclose entirely the notion that the UCL could apply to an association. If, for example, an association decided to sell products or services that are strictly voluntary purchases for members or nonmembers, it might be liable for such acts under the UCL. But applying the UCL to an election dispute would simply make no sense. An association, operating under its governing documents to maintain its premises and conduct required proceedings, possesses none of the relevant features the UCL was intended to address. Applying the UCL in this context would both misconstrue the intent of that statute and undermine the specific procedures set forth in the Davis-Stirling Act. An action under the UCL “is not an all-purpose substitute for a tort or contract action.” (Cortez v. Purolator Air Filtration Products Co. (2000) 23 Cal.4th 163, 173 [96 Cal.Rptr.2d 518, 999 P.2d 706].) We therefore find the court properly sustained defendant’s demurrer to the second cause of action.

E. Attorney Fees[8]

Subdivision (b) states: “A member who prevails in a civil action to enforce his or her rights pursuant to this article shall be entitled to reasonable attorney’s fees and court costs, and the court may impose a civil penalty of up to five hundred dollars ($500) for each violation, except that each identical violation shall be subject to only one penalty if the violation affects each member of the association equally. A prevailing association shall not recover any costs, unless the court finds the action to be frivolous, unreasonable, or [1428] without foundation.” The trial court’s order stated, in relevant part: “Plaintiff knew when the action was filed that his claims under CC1363.09 were barred by the statute of limitations. Such a bar is grounds for finding an action to be frivolous. [Citations.]”

Defendant argues that the language ofsubdivision (b) does not specifically state that associations are not entitled to attorney fees because the language regarding prevailing associations mentions only “costs” and not fees. Defendant argues that when authorized by statute, reasonable attorney fees are allowable costs, and therefore, once the association has established the action is frivolous, the attorney fees provision becomes reciprocal.

(6) “In ascertaining the meaning of a statute, we look to the intent of the Legislature as expressed by the actual words of the statute. [Citation.] We examine the language first, as it is the language of the statute itself that has `successfully braved the legislative gauntlet.’ [Citation.]” (Wasatch Property Management v. Degrate (2005) 35 Cal.4th 1111, 1117 [29 Cal.Rptr.3d 262, 112 P.3d 647].) The “resort to legislative history is appropriate only where statutory language is ambiguous.”[9] (Kaufman & Broad Communities, Inc. v. Performance Plastering, Inc. (2005) 133 Cal.App.4th 26, 29 [34 Cal.Rptr.3d 520].)

(7) While we agree with the trial court’s conclusion that plaintiff’s decision to file this lawsuit was indeed frivolous,[10] we must also agree with plaintiff that the plain language of the statute does not support an award of attorney fees to defendant, as unfair as that may seem. Statutory[11] attorney fee awards must be specifically authorized by a statute. (Code Civ. Proc., [1429] § 1021.)

(8) While defendant argues that Code of Civil Procedure section 1033.5, ivision (a)(10) permits recovery of fees as an item of costs, such recovery is only permitted when authorized by contract or statute, which brings us right back around to the language of subdivision (b). Plaintiff points out that if the Legislature had intended the last sentence of subdivision (b) to include attorney fees as well as costs, it could and would have said so. Further, other provisions in the Davis-Stirling Act clearly indicate an entitlement to attorney fees where the Legislature deemed them appropriate. (See, e.g., Civ. Code, § 1365.2, subds. (e)(3), (f).) We reluctantly agree.

Defendant’s arguments on this point are simply unpersuasive. Defendant asserts the use of the word “any” in the phrase “a prevailing association shall not recover any costs” reflects the Legislature’s intent to preclude either costs or attorney fees unless the action is demonstrably frivolous. But “any” costs could refer to any of the cost items listed in Code of Civil Procedure section 1033.5, subdivision (a). Defendant also argues plaintiff’s interpretation “completely ignores the punitive nature of the provision, which is clearly intended to punish a member who puts an association in the position of having to expend money to defend a frivolously meritless lawsuit.” But no such punitive intent is evidenced by the language of the statute. Further, defendant cites no authority in support of its position.

(9) “`This court has no power to rewrite the statute so as to make it conform to a presumed intention which is not expressed.’ [Citations.]” (California Teachers Assn. v. Governing Bd. of Rialto Unified School Dist. (1997) 14 Cal.4th 627, 633 [59 Cal.Rptr.2d 671, 927 P.2d 1175].) We sympathize with defendant’s position on this issue and agree that the Legislature should amend the statute to create an entitlement to attorney fees for the association if an action is “frivolous, unreasonable, or without foundation.”

(10) But we must rule on the statute before us, and therefore we agree with plaintiff that subdivision (b) does not authorize the court to award a prevailing association attorney fees.

III. DISPOSITION

The trial court’s decision sustaining the demurrers is affirmed. The order awarding costs to defendant that include attorney fees is reversed, and the [1430] matter is remanded to the trial court to enter a new costs award. Each party shall bear its own costs on appeal.

Bedsworth, Acting P. J., and Aronson, J., concurred.


 

[*] Pursuant to California Rules of Court, rules 8.1105(b) and 8.1110, this opinion is certified for publication with the exception of part II.C.

[1] According to the property manager, defendant had previously received a judgment against plaintiff for $177,904.69.

[2] Had the meeting been adjourned, it would have continued the recall election to a later date with a smaller quorum requirement.

[3] Plaintiff’s briefs purport to seek review of other issues as well, but these are the only questions properly before this court, as dictated by the relevant standard of review and substantive law.

[*] See footnote, ante, page 1419.

[7] Plaintiff cites a number of purported cases currently pending in the superior court, or decided by the appellate division, which have done so. Such cases have no binding or persuasive authority. The only published case involving an association and the UCL our research located was Turner v. Vista Pointe Ridge Homeowners Assn. (2009) 180 Cal.App.4th 676 [102 Cal.Rptr.3d 750], but that case did not address the substance of the plaintiffs’ UCL claim. (180 Cal.App.4th at p. 688.)

[8] Plaintiff requests that we direct “supplemental briefing” on this issue because the word limit on appellate briefs requires him to present his argument in “skeletal” format. The request is denied.

[9] We previously granted defendant’s unopposed request for judicial notice of the legislative history of Civil Code section 1363.09. If we were to consider the legislative history, we would find that it provides only limited support for defendant’s argument. The legislative history includes a number of committee reports and readings, but most of these documents merely state the bill would allow prevailing associations to recover “litigation costs” if the action is frivolous. Only one document, a partisan bill analysis, states that it would permit recovery of attorney fees by associations. To constitute cognizable legislative history, a document must shed light on the view of the Legislature as a whole. (Kaufman & Broad Communities, Inc. v. Performance Plastering, Inc., supra, 133 Cal.App.4th at p. 30.)

[10] Plaintiff argues that the mere fact that he filed this lawsuit after the statute of limitations had run is not sufficient for a finding of frivolousness. We do not agree with plaintiff that tardiness was the only basis for the court’s finding.

[11] Defendant also argues it is entitled to attorney fees based on the CC&R’s (covenants, conditions and restrictions). It points to a provision which states: “In the event action is instituted to enforce any of the provisions contained in this Declaration, the party prevailing in such action shall be entitled to recover from the other party thereto as part of the judgment, reasonable attorney’s fees and costs of such suit.” The trial court rejected this argument, pointing out that no evidence had been presented that the quoted portion of the CC&R’s applied to this case. A copy of the CC&R’s was not provided to the trial court, therefore there was no way to evaluate whether it included any provisions relating to elections, “or that this action implicated any of [the CC&R’s] provisions.” For the same reasons, we reject this argument. While the CC&R’s might create an entitlement to attorney fees, defendant simply failed to make the necessary evidentiary showing in the trial court.

Proxies

A “proxy” is a written authorization “signed” by a member of an association (or the member’s authorized representative) that “gives another member or members the power to vote on behalf of that member.” (Civ. Code § 5130(a)(1).)

“Signed” – A proxy is “signed” by placing the member’s name on the proxy (whether by manual signature, typewriting, telegraphic transmission, or otherwise) by the member or the member’s authorized representative. (Civ. Code § 5130(a)(2).)

Because elections are conducted via secret ballot, and because ballots received by the association’s inspector(s) of elections are counted in establishing quorum, an association has no legal obligation to allow for proxies unless otherwise stated in its bylaws, nor does an association have an obligation to prepare or distribute proxies. (Civ. Code § 5130(b).) Determining the authenticity, validity and effect of any proxies issued in an association election are duties which must be performed by the association’s inspector(s) of elections. (Civ. Code § 5110(c)(2); See also “Inspectors of Elections.”)

Eligible Proxyholders: Members Only
A proxy may only be given to another member of the association. (Civ. Code § 5130(a)(1).) A person who is not a member of the association is therefore not eligible to serve as a proxyholder.

Form of Proxy
Subject to certain limited exceptions set forth in Corporations Code Section 7514, the issuance of a proxy generally requires the use of two (2) pages. The first page of the proxy contains the written authorization signed by a member or the authorized representative of the member that gives another member (the proxyholder) the power to vote on behalf of that member. (Civ. Code § 5130(a)(1).) The second page contains any instruction given that directs the manner in which the proxyholder is to cast the member’s vote; this second page must be detachable so that it may be retained by the proxyholder. (Civ. Code § 5130(c).) The proxyholder then votes in the election via secret ballot. (Civ. Code § 5130(c).)

Term of Proxies
Proxies automatically expire after eleven (11) months unless stated otherwise in the proxy, but in no event may a proxy have a term of more than three (3) years. (Corp. Code § 7613(b).) Proxies remain in full force and effect until revoked by the person executing the proxy prior to the vote. (Corp. Code § 7613(b).)

Revocation of Proxies
Proxies continue in full force and effect until revoked. (Corp. Code § 7613(b).)

Methods of Revocation
Prior to receipt of the proxyholder’s completed ballot by the inspector of election, a proxy may be revoked by any of the following methods: (Civ. Code § 5130(c); Corp. Code § 7613(b).)

  • Notice of Revocation – the proxygiver may give written notice to the association’s inspector of election stating that the proxy has been revoked;
  • Execution of Later-Dated Proxy – the proxygiver may execute a subsequent proxy and deliver it to the inspector of election;
  • Appearance at the Meeting – the proxygiver may appear at the meeting and request a ballot to vote at the meeting, prior to the distribution of a ballot by the inspector of election to the proxyholder; or
  • Return of Ballot by Proxygiver – the proxygiver may send a completed ballot to the inspector of election prior the inspector of election distributing a ballot to the proxyholder.

Death or Incapacity of Proxygiver
A proxy is not revoked by the death or incapacity of the proxygiver unless, before the vote is counted, written notice of such death or incapacity is received by the association. (Corp. Code § 7613(c).)

Ballots are Irrevocable
By contrast, ballots are irrevocable once they have been received by the inspector(s) of elections. (Civ. Code § 5120(a).)

Candidate Nomination

Prior to a director election, an association typically distributes a “call for candidates” in order to solicit members to run for the board. There are several issues that pertain to how candidates are and may be nominated, such as ensuring that the candidates are “qualified” to serve on board, whether write-in candidates are allowed, and whether floor nominations are allowed.

Nomination Procedures
An association’s election rules must specify the qualifications for candidates for the board, as well as the procedures for the nomination of candidates, consistent with the association’s governing documents. (Civ. Code § 5105(a)(3); See also “Election Rules.”General notice of the procedure and deadline for submitting a nomination must be provided at least thirty (30) days before any nomination deadline. (Civ. Code § 5115(a).)

Right to Self-Nominate – Some sets of association bylaws may contain provisions allowing for the creation of “nominating committees” that have the power to screen which people are eligible to run for a seat on the board. However, an association’s election rules may not prohibit any member from nominating himself or herself for election to the board. (Civ. Code § 5105(a)(3).) Therefore, an association (whether through its board or nominating committee) does not have the power to prohibit any member from nominating himself or herself and from running for the board, so long as the member satisfies all of the required qualifications. (See “Candidate Qualifications”; See also Friars Village HOA v. Hansing (2013) 220 Cal.App.4th 405 at 414 (the “right of self-nomination…applies to a ‘qualified’ candidate”).)

Candidate Qualifications – The types of candidate qualifications an association may adopt are limited only to that which is allowed and/or required under Civ. Code § 5105 (b)-(c). (See also “Candidate Qualifications.”)

Floor Nominations
An association is not required to allow for floor nominations unless such a requirement is contained in the provisions of the association’s governing documents or election rules. (Civ. Code § 5105(b).)

Floor Nomination Procedure – Once the required quorum has been established, the chair of the meeting (typically the board president) will at the designated time open the floor for nominations. Members in good standing may nominate any qualified individual as a candidate for election to the board. A member need not be recognized by the chair of the meeting in order to make a nomination and no second is required. (Robert’s Rules, 11th ed., pp. 431-432.) The nomination is valid provided the nominee is qualified for election to the board; the nominee need not be contacted in advance of being placed on the ballot. (Robert’s Rules, 11th ed., p. 434.)

Ballots Previously Cast – If member’s ballot has already been mailed in and received by the association’s inspector of elections, the ballot is irrevocable. (Civ. Code § 5120(a).) That member would thus be prohibited from voting for any person that was nominated from the floor at the meeting.

Write-In Candidates
Civil Code Section 5105 allows for an association’s election rules to permit write-in candidates. (Civ. Code § 5105(b).) Unless the election rules, or other provisions of an association’s governing documents, permit write-in candidates, there is no legal requirement for an association to allow write-ins. However, if an association’s nomination procedures (either contained in the election rules or other provisions of its governing documents) allow for floor nominations, many HOA industry attorneys take the position that write-ins are impliedly valid.

Related Links

The New State of HOA Election LawsArticle published by Tinnelly Law Group

Member Approval Requirements

Default Approval Requirement
Where the required quorum is present at a membership meeting, the affirmative vote of a majority of the voting power represented at the meeting, entitled to vote, and voting on any matter constitute an act of the members unless the vote of a greater number or voting by classes is required by law, or by the association’s articles or bylaws. (Corp. Code § 7512(a).) Governing documents of associations may use varying terminology and language setting forth the applicable member approval requirements for actions that must be taken by a vote of the membership.

“Approval by/of a Majority of All Members”
“Approval by (or approval of) a majority of all members” means approval by an affirmative vote of a majority of the votes “entitled to be cast.” (Corp. Code § 5033.) The number of members entitled to vote may be reduced to the extent of any members whose voting rights have been validly suspended.

Illustration – if 100 members are entitled to vote, 51 must vote to approve the proposed action. If an association has 100 members, but 10 of those members have had their voting rights validly suspended, then 46 must vote to approve the proposed action (a majority of votes “entitled to be cast”).

“Approval by/of the Members”
“Approval by (or approval of) the members” means approved or ratified by the affirmative vote of a majority of the votes represented and voting at a duly held meeting at which quorum is present. (Corp. Code § 5034.)

Illustration – if an association has 100 members, and the applicable quorum requirement is a majority of the members, at least 51 members must be present (in person, by written ballot and/or by proxy) in order to achieve quorum and allow for the vote to be taken on the proposed action. At least a majority of those present must vote to then approve the proposed action. If 51 members are present, 26 must vote to approve the proposed action. If 90 are present, 46 must to approve the proposed action. This could provide a lower approval threshold than situations where “approval by/of a majority of all members” or “approval by/of the voting power” is required.

“Approval by/of the Voting Power”
“Approval by (or approval of) the voting power” generally means the approval of a majority of all members eligible to vote (i.e., similar to “approval by/of a majority of all members”). (Corp. Code § 5078.)

Illustration – if 100 members are eligible to vote, 51 must vote to approve the proposed action.

“Approval by/of an Authorized Number”
“Approval by (or approval of) an authorized number” means five percent (5%) of the voting power. (Corp. Code § 5036(a).)

Illustration – in an association with a voting power of 100 members (100 members eligible to vote), at least five (5) members vote to approve the proposed action.

Failure to Achieve Quorum

A “quorum” of the membership is the minimum number of member votes in person, by proxy and/or by written ballot that is required before the association may conduct business at a membership meeting. (Robert’s Rules, 11th ed., pp. 21, 345.) The quorum requirements are usually contained in provisions of an association’s bylaws or CC&Rs. (See “Member Quorum Requirements.”)

Loss of Quorum
Failure to achieve the required quorum is different from a situation where quorum is first achieved at the beginning of the meeting, but enough members withdraw (leave) from the meeting to leave less than a quorum. In that situation, actions may continue to be taken at the meeting so long as they are approved by at least a majority of members required to constitute a quorum. (Corp. Code § 7512(c); See also “Member Quorum Requirements.”)

Ballots Count Toward Quorum
If a quorum is required by the governing documents, each ballot received by the association’s inspector(s) of elections must be treated as a member present at the meeting for the purposes of establishing quorum. (Civ. Code § 5115(b).)

Adjournment Procedures
If an association fails to achieve quorum, the membership meeting may be adjourned by the vote of a majority of the votes represented either in person or by proxy; however, other than the vote to adjourn the meeting, no other business may be transacted. (Corp. Code § 7512(d).)

Vote to Adjourn – If there is a failure to achieve quorum, the chair of the membership meeting (typically the board president) calls the meeting to order, announces the absence of quorum, and then entertains a motion to adjourn the meeting to a later date. (Robert’s Rules, 11th ed., p. 349.)

Date of Reconvened Meeting – When a meeting is adjourned for a failure to achieve quorum, the time period within which the reconvened meeting must be held is usually dictated in the provisions of the association’s governing documents (typically in the bylaws). Common provisions establish time periods of no less than five (5) and no more than thirty (30) days from the date of the adjourned meeting. No meeting may be adjourned for more than forty-five (45) days. (Corp. Code § 7511(d).)

Notice of Reconvened Meeting – Unless otherwise provided in an association’s bylaws, when a membership meeting is adjourned to another time or place, notice of the reconvened meeting need not be given if the time and place are announced at the meeting at which the adjournment is taken. (Corp. Code § 7511(d).)

Impact on “Record Date” – The record date set for the initial meeting is not modified in connection with the reconvened meeting. (Corp. Code § 7611(b); See also “Record Date for Elections.”)

Special Adjournment Procedures for Board Elections and Recalls
If an association is unable to hold a membership meeting to elect or to recall directors due a failure to achieve quorum, unless a lower quorum is authorized by the association’s governing documents, the association may adjourn the meeting to a later date at which time the quorum required for the meeting will be twenty percent (20%) of the membership voting in person, by proxy, or by secret written ballot received. (Civ. Code § 5115(d)(2)Corp. Code § 7512(e).) The procedural requirements for adjournment are the same as described above, with the following exceptions:

Date of Reconvened Meeting – The reconvened meeting may not be held on a date less than twenty (20) days after the initially adjourned meeting. (Civ. Code § 5115(d)(2)Corp. Code § 7512(e).)

Notice of Reconvened Meeting – Not less than fifteen (15) days prior to the date of the reconvened meeting, the association must provide general notice of the reconvened meeting to the membership that includes:

    • The date, time and location of the reconvened meeting. (Civ. Code § 5115(d)(3)(A).)
    • The list of all candidates. (Civ. Code § 5115(d)(3)(B).)
    • A statement that 20 percent of the members present or voting by proxy or secret ballot will satisfy the quorum requirements for the election of directors and that the ballots will be counted if a quorum is reached. (Civ. Code § 5115(d)(3)(C).)

Quorum Requirement for Reconvened Meeting – Unless a lower quorum is authorized by the governing documents, the quorum required for the reconvened meeting is twenty percent (20%) of the association’s voting members present in person, by proxy, or by secret written ballot received. (Civ. Code § 5115(d)(2)Corp. Code § 7512(e).)

Court Petition to Reduce Quorum
If a meeting cannot be held due to a failure to achieve quorum, the board or any member of the association may file a petition in superior court to either lower the required quorum amount or to dispense with the quorum requirement entirely. (Corp. Code § 7515.)

Directors Continue to Serve
If an annual meeting of the members is not able to be conducted due to a failure to achieve quorum, and thus the election of new directors at the annual meeting is unable to take place, the directors then in office generally continue to serve on the board until successors have been formally elected and qualified (typically at next year’s annual meeting). (Corp. Code § 7220(b).) Any vacancies on the board which were unable to be filled through membership vote at the annual meeting may generally be filled by approval of a majority of the board (by board appointment), subject to certain exceptions. (Corp. Code § 7224; See also “Filling Vacancies on the Board.”)

Member Quorum Requirements

A “quorum” of the membership is the minimum number of member votes in person, by proxy and/or by written ballot that is required before the association may conduct business at a membership meeting. (Robert’s Rules, 11th ed., pp. 21, 345.) The quorum requirements are usually contained in provisions of an association’s bylaws or CC&Rs. Such provisions typically set the applicable quorum as a simple majority of the association’s voting power.

Default Quorum Requirement
Civil Code Section 5115(b) provides that a “quorum shall be required only if so stated in the governing documents or other provisions of law.” If the governing documents require a quorum but do not specify the quorum amount, and unless otherwise provided in the association’s bylaws or other provisions of law, one-third (1/3) of the voting power of the association, represented in person or by proxy, constitutes a quorum. (Corp. Code § 7512(a).)

Failure to Achieve Quorum
Where the required quorum is not achieved, the membership meeting may be adjourned by a vote of a majority of the votes represented at the meeting either in person or by proxy, but no other business may be transacted. (Corp. Code § 7512(d); See also “Failure to Achieve Quorum.”)

Reduced Quorum for Board Elections and Recalls
Effective January 1, 2024, if an association is unable to hold a membership meeting to elect or to recall directors due its failure to achieve quorum,  unless a lower quorum is authorized by the association’s governing documents, the association may adjourn the meeting to a date at least twenty (20) days after the adjourned meeting, at which time the quorum required for the meeting will be percent (20%) of the membership voting in person, by proxy, or by secret written ballot received. (Civ. Code § 5115(d)(2); Corp. Code § 7512(e); See also “Failure to Achieve Quorum.”)

Quorum Set by Statute
For particular matters, provisions of the Davis-Stirling Act may specify the applicable quorum requirement, regardless of anything to the contrary contained in the provisions of an association’s governing documents. For example, where a membership vote is required to increase assessments above a certain amount, Civil Code Section 5605(c) sets the applicable quorum requirement as more than fifty percent (50%) of the association’s members, regardless of anything to the contrary in the association’s governing documents. (See “Limitations on Assessment Increases.”)

Ballots Count Toward Quorum
If a quorum is required by the governing documents, each ballot received by the association’s inspector(s) of elections must be treated as a member present at the meeting for the purposes of establishing quorum. (Civ. Code § 5115(d)(1).)

Loss of Quorum
If the required quorum is achieved at the beginning of a membership meeting, and enough members withdraw (leave) from the meeting to leave less than a quorum, actions may continue to be taken so long as they are approved by at least a majority of the members required to constitute a quorum. (Corp. Code § 7512(c).) For example, assume that the required quorum is fifty (50) members. If sixty (60) members attend the meeting, but then twenty (20) members leave during the meeting, actions may continue to be taken provided that they are approved by at least twenty-six (26) members remaining at the meeting (at least a majority of the members required to constitute a quorum).

Association Funds in Campaigns

In general, an association is prohibited from using association funds for “campaign purposes” in connection with:

  • Any association board election, or
  • Any other association election except to the extent that the use of association funds is “necessary to comply with duties of the association imposed by law.” (Civ. Code § 5135(a).)

“Campaign Purposes” Defined
The term “campaign purposes” with regard to this issue includes, but is not limited to, the following:

Advocacy – the term “campaign purposes” includes expressly advocating the defeat of any candidate that is on the association election ballot. (Civ. Code § 5135(b)(1).)

Candidate Photo or Candidate Name – the term “campaign purposes” includes the inclusion of a photograph or prominently featuring the name of any candidate on any communication from the association or the board within thirty (30) days of an election. (Civ. Code § 5135(b)(2).)

Equal Access During Campaigns

Associations are required to adopt and adhere to election rules in connection with elections that require the use of secret ballots. Those election rules must, among other requirements, provide candidates and association members with access to association media and common area meeting spaces for purposes that are reasonably related to the election. (Civ. Code § 5105(a).)

Equal Access to Association Media
The election rules must ensure that if any candidate or member* advocating a point of view in connection with the election is provided access to association media (i.e., newsletters, websites, etc.) during a campaign for purposes that are reasonably related to that election, the association must provide equal access to all candidates and members advocating a point of view on the issue, including points of view that are not endorsed by the board. (Civ. Code § 5105(a)(1).) The association may not edit or redact any content from such communications, but may include a statement specifying that the candidate or member, and not the association, is responsible for the content. (Civ. Code § 5105(a)(1).)

*Director Points of View & Advocacy – The term “member” has been interpreted by the California Court of Appeals to also include directors of the association (members of its board):

“…to the extent board members advocated their point of view in association media, whether expressing a personal viewpoint, or the collective viewpoint shared by a majority of the board members, the text of the equal-access provision straightforwardly applies…while in the midst of an election, the board must either give equal access to opposing viewpoints, or forego the use of association media to advocate [the board’s] viewpoint.” (Wittenburg v. Beachwalk HOA (2013) 217 Cal.App.4th 654, 664-665.)

Thus, where the board utilizes HOA media to advocate its point of view in connection with an election, it must also provide equal access to that media to any member or candidate advocating a point of view on the issue.

Equal Access to Common Area Meeting Spaces
The election rules must also ensure that access is provided to the association’s common area meeting space, if any exists, during a campaign*, at no cost, to all candidates, including those who are not incumbents, and to all members advocating a point of view, including those not endorsed by the board, for purposes reasonably related to the election. (Civ. Code § 5105(a)(2).)

*A “Campaign” May Pertain to Multiple Elections – The term “campaign” does not necessarily apply to a particular election. If an association holds multiple elections in short succession, and those elections pertain to the same generalized matter, the term “campaign” could encompass activities relating to the multiple elections as a collective group for the purpose of challenging the results of the election on the basis that equal access was wrongfully denied. (Wittenburg at 669.)

Violations of Equal Access Requirements; Judicial Enforcement
In an association violates the equal access requirements, a member of the association may bring a civil action for declaratory or equitable relief within one (1) year of the date the cause of action accrues. (Civ. Code § 5145; See also “Legal Challenge to Election.”) Causes of action based upon violations of the equal access requirements may also be brought in small claims court. (Civ. Code § 5145(c).)

Attorney’s Fees – If a member prevails, the member is entitled to his/her reasonable attorney’s fees and court costs, and the court may impose up to five hundred dollars ($500) for each violation. (Civ. Code § 5145(b).) By contrast, if the association prevails, it is not entitled to any of its costs “unless the court finds the action to be frivolous, unreasonable, or without foundation.” (Civ. Code § 5145(b).) However, the term “costs” does not include attorney’s fees; a prevailing association is not entitled to recover its attorney’s fees even where the court finds the action to be frivolous. (That v. Alders Maintenance Corp. (2012) 206 Cal.App.4th 1419, 1428; See also “Legal Challenge to Election.”)

Court Discretion to Void Election Results – When a court finds that an association violated the equal access requirements, or any other requirements applicable to the balloting and election procedures, Civil Code Section 5145 allows a court to void the results of the election. (Civ. Code § 5145(a).) This does not affirmatively require a Court to void the results, but rather gives the Court the discretion to do so. (Wittenburg at 667 and 670.)

Expenditure of Association Funds
Civil Code Section 5135 generally prohibits the use of association funds for “campaign purposes” in connection with board elections and other elections, subject to certain exceptions. (Civ. Code § 5135(a); See also “Association Funds in Campaigns.”) However, association funds may be used in connection with campaign communications that must be provided to comply with the equal access requirements discussed above. (Civ. Code § 5135(b)(2).)