Q: Section 720.309(2)(a) appears broad, permitting an HOA Board (with their membership's approval) to cancel any contract?
Would this statue prevail in a lawsuit by, say, AT&T suing an HOA Board for canceling a binding 10-year Installation and Servicing Agreement (for wiring and maintaining cable communications, etc.) between AT&T and a Developer that was assigned to the HOA, say, 4 years later after the development was completed and turned over to the HOA?
A: It's very unlikely. That section of the statute only allows the contract to be cancelled by a majority vote of the membership at the next regular or special meeting of the HOA. The statute does not specify it needs to be a members meeting; just a meeting of the HOA. It would be difficult to convince a judge the HOA had no meetings for four years and it requires the membership to vote to cancel the contract, not the board of directors. Section 1 of the statute requires a contract entered into by the developer to be fair and reasonable but it also does not apply to contracts for 10 years or less.
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