Chantiles

Chantiles v. Lake Forest II Master Homeowners Ass'n

Good Law
1995 Cal. App. LEXIS 769·37 Cal. App. 4th 914·45 Cal. Rptr. 1·45 Cal. Rptr. 2d 1·95 Daily Journal DAR 10879
Court of Appeal of CaliforniaAugust 7, 1995G014505California10,499 words

Opinion

Concurring Opinion

Crosby, J.

Thomas J. Chantiles was a member of the homeowners association’s board of directors when he filed this action. He lost that seat in an election after the trial court entered judgment. As he is no longer a director, he enjoys no inspection rights under Corporations Code section 8334; and for that reason alone I concur in the decision not to award him any relief.

While the appeal is technically moot, in my view, as to Chantiles, the issue is one “of continuing public interest and likely to recur in circumstances where, as here, there is insufficient time to afford full appellate review” (Leeb v. DeLong (1988) 198 Cal.App.3d 47, 51-52 [ 243 Cal.Rptr. 494 ]). Accordingly, I agree with my colleagues that it should be addressed. But I disagree with their analysis.

Corporations Code section 8334 was enacted in 1978, years before the election in this case. And the inspection rights it confers on directors of corporations are unconditional: “Every director shall have the absolute right at any reasonable time to inspect and copy all books, records and documents of every kind ... of the corporation of which such person is a director.” Where, as here, a statute is unambiguous, a court…

Lead Opinion

Wallin, J.

In this case we are asked to consider the extent of a homeowner association director’s rights to inspect the records of the association under Corporations Code section 8334. 1 Here a director asks us to conclude his inspection rights are absolute and include an unfettered right to review and copy the ballots cast by the association’s homeowner members in its annual election of its board of directors. The association asks us to hold, as the trial court did, that a director’s rights of inspection must be balanced against the members’ legitimate expectations of privacy in their voting decisions. We affirm.

Thomas J. Chantiles was an elected member of the board of directors of the Lake Forest II Master Homeowners Association (the Association). The Association elects its seven directors annually. Voting is cumulative, meaning that each homeowner member has seven votes per election which may be divided however he or she wishes among the candidates, for example, the member may cast one vote for each of seven candidates or all seven votes for one candidate.

As required by law, voting is done by a proxy ballot, rather than by direct written ballot. The proxy ballots are mailed…

Opinion

In this case we are asked to consider the extent of a homeowner association director's rights to inspect the records of the association under Corporations Code section 8334. [1] Here a director asks us to conclude his inspection rights are absolute and include an unfettered right to review and copy the ballots cast by the association's homeowner members in its annual election of its board of directors. The association asks us to hold, as the trial court did, that a director's rights of inspection must be balanced against the members' legitimate expectations of privacy in their voting decisions. We affirm.

Thomas J. Chantiles was an elected member of the board of directors of the Lake Forest II Master Homeowners Association (the Association). The Association elects its seven directors annually. Voting is cumulative, meaning that each homeowner member has seven votes per election which may be divided however he or she wishes among the candidates, for example, the member may cast one vote for each of seven candidates or all seven votes for one candidate.

As required by law, voting is done by a proxy ballot, rather than by direct written ballot. The proxy…

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