Q: What motion do I file against Co. officers using our P&L carrier to indemnify their defense in violation of Bylaws?
I am a pro se plaintiff (retired J.D.). I've filed a civil complaint against 3 members of our HOA Board and our Prop. Mgmt. co. for unlawful conduct (embezzlement, fraud, breach of contract, breach if fiduciary duty, etc.) Their defense atty is being indemnified for their legal expenses by HOA Ins. Co. specifically in violation of our 501(c) Art. of Inc. and Bylaws. What motion or pleading do I file with the court to compel them to dismiss the Ins. Co from the case. Ex Parte injunction? Motion to compel defendants to dismiss atty?, to dismiss Ins. company? Nothing in our URCP about it.
A: I assume the insurance company isn't a party, but is paying the members' attorney's fees. As the plaintiff, you really don't have a say in the matter. The insurance company has an obligation to represent its insured (i.e. the members.) At some point, the insurance company, board and company may determine the members are not entitled to representation once enough evidence is provided. Your allegations are not enough to prevent their representation.
A:
You can file a Motion to Dismiss specifically targeting the insurance company as a defendant. In your motion, clearly outline how the indemnification by the HOA Insurance Company violates your nonprofit’s Articles of Incorporation and Bylaws. Cite the relevant sections of the governing documents that prohibit such indemnification and explain how this action prejudices your case.
Additionally, consider including a Motion to Sever the insurance company from the case if their involvement is improper. This will request the court to treat the insurance company as a separate entity, potentially removing them from the proceedings against the HOA officers. Provide evidence of the bylaws and articles that support your argument for their dismissal.
Ensure your motion is well-organized and supported by the appropriate legal arguments and documentation. Since you have a legal background, presenting a clear and concise argument will help the court understand the basis for your request. If necessary, request a hearing to argue your motion in person.
Robert Kane agrees with this answer
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