Tag Archives: judgment

Duty to Call

A board’s reluctance to contact an attorney could be a risk not worth taking.

A Fort Lauderdale condominium association paid $100,000.00 to settle a lawsuit after an attorney-board member who wasn’t licensed in Florida wrongly insisted how overdue assessments should be collected.

Board members of a California condominium association didn’t consult...

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RI: Ex-convict from Johnston agrees to stop harassment

News items of national interest regarding Condominium and Homeowner associations, compiled by the Community Associations Network

An ex-convict from Johnston who was accused of harassing neighbors in his condominium complex with “racial, homophobic and sexist statements and actions” has signed a consent judgment in which he agreed to end such conduct
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The Business Judgment Rule and the Board

The business judgment rule requires members of the board of directors to exercise ordinary and reasonable care in performing their duties to an association.  This rule seeks to strike a balance between potential overdelegation on the one hand, and completely concentrated power on the other.  Under the business judgment rule, a board member will not be held personally liable for her actions that, although harmful to the association, were accomplished through the exercise of reasonable care.

Board members must carefully supervise individuals with whom the board has delegated authority.  Board members are often found to be in conflict with the business judgment rule when they depend too much on association managers or other employees. An association’s declaration may limit the board’s authority to delegate by stipulating the duties that are and are not delegable and which board members have the power to delegate.

It is also essential for board members to act

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