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| Author |
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JC3
Posts:290
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| 06/18/2008 7:06 PM |
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| What would happen if one board member filed suit against another, as far as director and officer insurance, state law, etc? |
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SusanW1
(Michigan)
Posts:2178
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| 06/18/2008 7:08 PM |
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That would be a personal lawsuit, and unless the HOA was named in the suit, the issue is between 2 people.
What is the charge?
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KirkW1
(Texas)
Posts:1145
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| 06/18/2008 7:29 PM |
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| If the lawsuit has any relation to what has happened as an act of the board, then the HOA's insurance would in fact come into play to for the defendant. The insurance will not help the plaintiff. |
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BradP
(Kansas)
Posts:1742
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| 06/20/2008 6:06 AM |
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| Kirk is right, if the basis of the suit is HOA related the defendant would have the ability to use the D & O insurance of the association. The plantiff is on their own. |
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NicoleO4
Posts:0
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| 06/22/2008 8:20 AM |
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| I am most curious what is the cause of the legal action? |
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BrianB
(California)
Posts:1742
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| 06/23/2008 8:11 AM |
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maybe i am just thinking weird, but wouldn't it depend on the details of the case whether the D&O insurance would handle the plaintiff or the defendant, or neither?
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MaryA1
(Arizona)
Posts:2248
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| 06/23/2008 8:23 AM |
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Posted By BrianB on 06/23/2008 8:11 AM
maybe i am just thinking weird, but wouldn't it depend on the details of the case whether the D&O insurance would handle the plaintiff or the defendant, or neither?
Brian,
Good question? How about this one. Why shouldn't it cover both as we're talking about two board members? How does the ins co decide -- draw straws??? Aren't all board members covered equally? Frankly I didn't think one board member could really sue another or sue the assn. Aren't all board members responsible for the actions of the board, unless they have formally objected and the objected is recorded in the minutes?
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JohnK3
(Pennsylvania)
Posts:463
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| 06/23/2008 8:45 AM |
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Mary,
Ins. policies typically contain one duty and one possible duty for the insurer. The duty is to "defend" an insured. The possible duty is to "indemnify," as in pay the entire or partial loss/cost of the action. So, as stated by others, the plaintiff is on his/her own dime. |
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BrianB
(California)
Posts:1742
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| 06/23/2008 10:49 AM |
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thanks John... that helps explain it.
I guess in some of the situations i can think of, the insurer might simply say "we suggest you seek outside counsel" to the defendant, and just not cover anyone. |
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JohnK3
(Pennsylvania)
Posts:463
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| 06/23/2008 11:14 AM |
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Brian,
The insurer has the duty to defend including associated costs. Could be with an in-house attorney, a "captive" firm, or an outside lawyer with whom it has experience. It would be rare for the insurer to allow an insured to choose counsel, though not impossible. |
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