Condo Media - August 2012 - 48

FEATURE

by Nena Groskind

Should Community Associations Establish Neighborhood Watch Groups?

T

he killing of Trayvon Martin, the unarmed teenager shot by the head of a neighborhood watch group, has ignited a national debate — not only about the actions of this watch group and its captain, George Zimmerman, who shot Martin; but also about the desirability of neighborhood watch groups in general. That debate has resonated with particular force in common interest ownership communities, because the watch group involved was apparently sponsored by a homeowners association that will almost certainly face a wrongful death suit as a result — a suit industry executives predict the association is likely to lose. We asked an attorney, Stephen Marcus, and an insurance executive, Joel Meskin, to discuss the legal liability and insurance issues raised by the Martin case and the implications for community associations. Both have reached the same conclusion: The risks of watch groups outweigh their benefits for most community associations.

Joel Meskin, vice president in charge of community association products for McGowan & Company, Inc. In the Trayvon Martin case, Meskin says, the association’s legal liability will depend on its relationship to the watch group and whether it fulfilled any oversight responsibilities that relationship required. Because it appears that the association officially sponsored the watch group, Meskin thinks it is more likely than not it will be found guilty of “negligent supervision” for failing to adequately screen volunteers and control their activities. If the evidence shows that board members actually knew Zimmerman was armed and either approved or failed to forbid it, Meskin says, “that would [infuriate] any jury in its right mind.” A key question for the association, obviously, will be whether its insurance will provide any coverage for legal defense or damage awards. The board’s D&O policy won’t help, Meskin says, because its language specifically excludes claims for bodily injury. The association’s commercial general liability (CGL) policy, on the other

hand, could provide coverage for the board and the association, if the association sponsored the watch group (as appears to be the case) and if it had the authority to create it. However, if this HOA’s governing documents didn’t authorize the watch group specifically or generally authorize its activities, Meskin says, an insurer might deny coverage on that basis. Depending on how the CGL policy is worded, Meskin explains, it might also provide coverage for liability claims against volunteers involved in association-sanctioned activities. But there is an important limitation here. Liability policies typically cover damages only if they were “unintended or unanticipated.” While Zimmerman might be able to argue that Martin’s death was unintended, Meskin points out, he would have a hard time arguing that a shooting was an “unanticipated” consequence of carrying a gun. He thinks it is likely that the association’s CGL policy will cover both its defense costs and damages awarded to Martin’s family. But if the award exceeds limits of the policy and any

48

CONDO MEDIA • AUGUST 2012
Condo Media - August 2012

Table of Contents for the Digital Edition of Condo Media - August 2012
