The new OPA By-Laws state:

"No individual may be a candidate for election as a director if they are a plaintiff in an active lawsuit in a Maryland or Federal court, including on appeal, in which the Association or any of the Association's Directors, named in their capacity as a Director, is/are named as a defendant; nor may the candidate be named as defendant in an active lawsuit in a Maryland or Federal court in which the Association is the plaintiff, including on appeal."

Does this mean the OPA Board of Directors can keep potential candidates off the ballot simply by filing a lawsuit against the candidate?

Sure looks like it.

Adding insult to injury, if a candidate is rejected for some reason and sues to be placed on the ballot, does the act of suing automatically prevent them from being on the ballot?

Should this provision be in the bylaws as written?