Q&A: Can homeowner association’s attorney give sports tickets to board directors?

Question: Is it acceptable for a homeowner association attorney to offer expensive sports tickets for free to board directors? Is it acceptable for the attorney to wine and dine board directors especially when the board is responsible for hiring him and signing his retainer agreement?

Answer: A bribe consists of anything of value, preferment or advantage — with a corrupt intent to induce or influence action. It can also consist of a gift not necessarily of pecuniary value that is bestowed for the purpose of influencing the conduct of the receiver. Kickbacks are also bribes.

Some businesses give discounts and coupons; others send muffin baskets. This attorney uses dinners and season tickets to sporting events. These so-called gifts are not unlawful or against public policy, and it is not per se illegal for vendors to give gifts. With regard to this attorney, the board of directors and the association are not vendors, they are his clients. As fiduciaries, board directors are entrusted with oversight of other people’s money, that is, titleholders’ money and assets. If board directors’ decisions can be swayed by gestures of gifts and perks, then they are breaching their duties to the association and titleholders who fund the bank accounts.

Board directors’ actions should be above reproach and directors should not swap their good judgment for the sake of gifts and perks. An attorney seeking contract renewal should rely on providing superior service based on knowledge and commitment — not sports tickets. If the attorney wants to show appreciation for the business, a discount in his fees benefits all who pay his invoices.

This attorney’s schmoozing could have a deleterious effect on the other directors’ ability to properly represent the association and its owners. Feel free to mention these gifts and perks to other titleholders so they can evaluate on their own whether the directors they elected are looking out for their best interests.

Zachary Levine, a partner at Wolk & Levine, a business and intellectual property law firm, co-wrote this column. Vanitzian is an arbitrator and mediator. Send questions to Donie Vanitzian, JD, P.O. Box 10490, Marina del Rey, CA 90295 or noexit@mindspring.com.