Disclosure of Lawsuits
Boards should disclose all lawsuits to the members of the association whether the association is a plaintiff or a defendant. Members need to know this information because they are required to disclose pending litigation to buyers and mortgage lenders. Lawsuits should also be disclosed to any accountant performing a review of the association's financial records because the accountant may be required to disclose a contingent liability on the association's balance sheet.
Coast Management of California