In 2020, the HOA settled a lawsuit out of court. A dispute arose between a homeowner and the HOA regarding the homeowner’s exterior alteration request for an improvement on the homeowner’s property. The HOA worked diligently to address the matter in a neighborly fashion without incurring any costs, but could not resolve the issue to the homeowner’s satisfaction. The homeowner sued the HOA and the HOA’s insurance carrier arranged for the HOA’s defense. Upon careful and deliberate consideration, and after extensive consultation with the insurance defense counsel, the HOA Board decided that it was in the HOA’s best interest to settle the matter. The amount of the settlement payment paid to the homeowner was $6,000, which was the amount of the homeowner’s attorneys’ fees. A settlement and release agreement was executed by the parties and the case was thereafter dismissed with prejudice.