In Lake Point Tower Condominium Association v. Waller,  the condo board filed a collection lawsuit against a unit owner. That owner asked that the lawsuit be dismissed, claiming the board had not voted on the action at an open board meeting and had improperly delegated the authority to initiate the lawsuit to the property manager. The trial court granted the dismissal to the owner, even though the board subsequently ratified the action at an open board meeting, and determined that the association could not proceed on the initial lawsuit. The association appealed this decision.

The Appellate Court determined that the trial court erred in dismissing the lawsuit as the association had ratified the action, even though it was after the lawsuit was filed. Furthermore, the court concluded that the Illinois Condominium Property Act did not preclude an Association’s Board from delegating authority to initiate collection lawsuits to the property manager.  

Per attorney Rob Kogen of Kovitz Shifrin Nesbit, condo boards should make a motion in an open meeting to allow a board member or the property manager to turn delinquent accounts over to an attorney for collection. Once the meeting minutes reflect a resolution allowing for this, the board does not need to vote at an open meeting on every owner account that is to be turned over for collections. As always, the minutes should be retained in the association's permanent files.

To read more about the case, click here.

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