436.359. Rejection of settlement offer by association governing board, effect of--meeting requirements. - Missouri Statutes

Rejection of settlement offer by association governing board,effect of--meeting requirements.

436.359. 1. If an association's governing board rejects a writtensettlement offer from the contractor and has satisfied applicableprovisions of section 436.356, and upon written request by the contractoras part of said offer that the association hold a meeting of the members,the provisions of this section shall apply prior to the association filingan action alleging construction defects in the common areas and commonelements.

2. The board shall hold a meeting open to each member of theassociation. The meeting shall be held no less than fifteen days beforethe association commences an action against the contractor.

3. No less than fifteen days before this meeting is held, a writtennotice shall be sent to each member of the association specifying all ofthe following:

(1) That a meeting will take place to discuss construction defectsthat may lead to the filing of an action, and the date, time, and place ofthe meeting;

(2) The options that are available to address the constructiondefects, including the filing of an action and a statement of the variousalternatives that are reasonably foreseeable by the association to pay forthose options and whether these payments are expected to be made from theuse of reserve account funds or the imposition of regular or specialassessments, or emergency assessment increases;

(3) The complete text of any written final settlement offer from thecontractor and a concise explanation of the contractor's specific reasonsfor the terms of the offer.

4. The discussions at the meeting and the contents of the notice andthe items required to be specified in the notice under subsection 3 of thissection are privileged communications and are not admissible in evidence inany action, unless the association consents to their admission.

5. No more than one request to meet and discuss a written settlementoffer under this section may be made by the contractor.

(L. 2005 S.B. 168 § 431.309)