Epsten, APC Wins the Fight Against Hunger

Throughout the month of May, our Epsten staff and attorneys joined forces with Feeding America San Diego in their annual Food from the Bar competition, a competition in which local San Diego law firms compete to raise food, funds and resources for local families struggling with hunger.

Epsten, APC volunteered over 75 hours, collected and donated 217 pounds of food, raised a total of $2,750 dollars and earned 79, 322 points in the competition taking 2nd place in their league and 3rd overall!  Because of the dedication and hard work from all of this year’s Food from the Bar participants, Feeding America San Diego raised a total of $24,028 dollars and 2,662 pounds of food, to secure over 98,330 meals to children facing hunger in San Diego this summer!

Thank you to everyone for your support and contributions.

Does Your Association Have Employees?

If so, be prepared to review how you pay any employees, including hourly workers and any “white collar” exempt employees (as defined in the law), such as certain association managers, to ensure the association complies with current laws. The minimum hourly rate is continuing to be increased by federal, state, and sometimes local laws depending on the size of the employer and location of the employer. You can check the current minimum hourly rate with the applicable federal, state, and local government agencies. For salaried exempt employees, there are also minimum salaries that must be paid by the employer. For association employers with 26 or more employees, federal, state and local laws must be reviewed for the minimum requirements. For employers with 25 or less employees, employers should check with the California state and local laws for minimum wage requirements. The wage and hour laws are rapidly changing both on federal, state, and local levels. It is not easy to maneuver through the maze of employment laws that may apply to your association. Associations that have employees should have their employment practices, especially its wage and hour practices, professionally reviewed for legal compliance on a yearly basis.

The following link may be helpful from the California Department of Industrial Relations: https://www.dir.ca.gov/dlse/faq_minimumwage.htm

Legislative Update: AB 1720 & AB 1799

It’s only May, but there’s already important news out of Sacramento about bills concerning community associations.

Assembly Bill 1720 – Attorneys & Other Member Representatives at Board Meetings?

This bill was introduced by Assemblyman Wagner of the 68th Assembly District in Orange County.  As introduced, it would have allowed attorneys representing association members to attend any board meeting the member was entitled to attend, and would have done so regardless of whether or not the member attended the meeting.  The bill was subsequently revised to allow not just attorney attendance at board meetings, but also that of any person representing an association member.

Among other things, the bill would have overturned existing California case law confirming that board meeting attendance rights do not extend to members’ attorneys or other non-members.  (See SB Liberty LLC v. Isla Verde Ass’n., Inc. (2013) 217 Cal. App. 4th 272, a case handled by William S. Budd of our firm.)

Fortunately, on April 27, 2016, AB 1720 failed to pass through the Assembly Committee on Housing and Community Development.  However, the bill was granted the opportunity for “reconsideration” by the committee — the chance to be heard and voted on again by that committee.  If the bill ever gets back on track again, you’ll surely hear about it and be contacted for your grassroots opposition.

Existing law already provides association members with multiple ways to meet with the board, with or without an attorney or other representative.  For example, members may request to meet with the board, bring an attorney or another person with them to an internal dispute resolution meeting, and invoke alternative dispute resolution procedures.

Due to well-reasoned, organized opposition to AB 1720 by community association volunteer leaders, association members, managers, service providers and organizations like the Community Associations Institute’s California Legislative Action Committee (CAI-CLAC) and the California Association of Community Managers (CACM), AB 1720 has been stopped at least for now.  The more than 600 letters sent in opposition to the bill surely made the necessary impact.

Assembly Bill 1799 – Uncontested Elections:  Going Through the Motions?

Authored by Assemblyman Mayes of Yucca Valley, whose 42nd District covers portions of both Riverside and San Bernardino Counties, AB 1799 is on the move.  On May 12, AB 1799 obtained the overwhelming affirmative vote of the Assembly and moved on to the Senate for its consideration.  It is supported by both CAI-CLAC and CACM, with CAI-CLAC reporting that more than 700 grassroots advocacy letters were sent in support of the bill during the two weeks prior to the Assembly floor vote.

If passed into law, AB 1799 would provide procedures for a community association board to declare an election uncontested.  By doing so, AB 1799 would allow associations in which the number of candidates for election, including write-in candidates (if applicable), does not exceed the number of directors to be elected at that election, to essentially dispense with the secret ballot double envelope process otherwise required by the Davis-Stirling Act.  This can result in cost savings to associations whose director elections are more of a costly “going through the motions” than a meaningful voting experience.

Note, however, that even an association which declares an election uncontested must, like all other community associations subject to the Davis-Stirling Act, still have duly adopted election rules pursuant to Civil Code section 5105.  Among other things, the procedures which would be added by AB 1799 also call for giving general notice to the members of the board’s intent to declare an election uncontested, including disclosing the names of the candidates who would be declared elected.

Keep in mind that this is still an active bill, which may be amended after the preparation of this article.  Until such time as AB 1799 becomes law, associations are reminded that the existing election procedures of the Davis-Stirling Act remain in effect.

2016 Food from the Bar Competition

On May 1st, Epsten (Team EG&H) again joined the fight to help end hunger by participating in the Feeding America San Diego (FASD) Food from the Bar competition, a countywide competition in which we will compete against other local San Diego law firms to see who can make the biggest impact to overrule hunger. The competition runs through the month of May and our goal is to raise $2,5000 and collect the most points by donating funds (10pts per dollar), collecting food (1pt per pound) and volunteering time (5pts per hour).

If you are interested in learning more about how you can help support this effort and take a stand against hunger today, please visit our team page:

https://impact.feedingamericasd.org/e/teamepsten

Donations can be made via the above link, food can be dropped off at our San Diego office, or you can contact Jennifer Ranger if you are interested in volunteering at Feeding America San Diego with us at our final volunteer shift on May 26th from 6 to 8pm.

Anne L. Rauch, Esq. passes the Legal Specialist Examination in Appellate Civil Law

Congratulations to Anne L. Rauch, Esq. who recently passed the Legal Specialist Examination in Appellate Civil Law, the first step in satisfying a series of requirements by the California State Bar to be board certified as a specialist in civil appeals.

Over the years of her career, Anne has been instrumental to our clients and firm in successful appeals resulting in a number of published opinions in matters of widespread public importance involving litigation and property rights of consumers and homeowner associations and a host of other issues impacting community associations.

Anne’s pursuit of this designation is a reflection of her continued commitment to excellence in handling matters on appeal for Epsten’s clients.

2016 Super Lawyers: Jon H. Epsten, Douglas W. Grinnell & Pejman D. Kharrazian

Congratulations to three of our own Epsten, APC attorneys who were included in the San Diego 2016 list of “Super Lawyers” as published earlier this month. This is the second consecutive year for for each of these attorneys to be included in The Annual List of Top Attorneys in San Diego, including Rising Stars.

EG&H Super Lawyers – San Diego 2016 (Page 25 & 38)

Celebrating 30 Years: 1986-2016

It is an honor and a privilege to celebrate our 30th Anniversary this year. Although Jon Epsten, Doug Grinnell and many of our staff have been in the industry for well over 30 years, it was on July 7th, 1986 that our firm was established in the County of San Diego. Today, our firm has offices in San Diego, the Coachella Valley (Indian Wells) and the Greater Inland Empire (Temecula) with a staff of 28 attorneys and nearly 70 employees firm-wide.

We thank you, our valued clients and colleagues. Our success is attributed to you and we look forward to serving you for many years to come!

Insurance Renewals & Notices of Facts Which May Lead to a Claim

By Jon H. Epsten, Esq. & Mary M. Howell, Esq.

We are seeing with more frequency associations either carelessly completing insurance renewal applications, or allowing an uninformed insurance agent or broker to complete the application form for new or renewed insurance, without making sufficient inquires of the board and management about actual or potential claims. This is particularly important in the context of directors and officers liability insurance.

Liability Definition

In this type of policy, insurers often deny coverage either by alleging the company was not put on notice of facts which might lead to a claim (such as a request for IDR or ADR), and/or failure to disclose a potential claim on the application for insurance.  While the initial denial of coverage may be subject to challenge by the association, it is better practice to notice the carrier of any negative input from owners–even if that means a letter a day!

We also encourage boards and management to take the renewal process seriously, rather than treat the process as a routine ministerial act. Encourage your insurance agent or broker to become actively engaged in the insurance application process and claims reporting process.

The result of not properly reporting information to the insurance company can have devastating financial consequences on an association.