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TomS11 (Florida)
Posts: 29
Posted:
does any one know if a board member has ever been sucssfully sued for breech of fiduciary responsibility in the state of florida?

any attorneys out there?

any case law in this area?
DonnaS (Tennessee)
Posts: 5,671
Posted:

Tom,
The question is are you talking for a Board action? If you are, Board members individually cannot be sued. That is why all Boards carry a D.&O. liability policy. What details can you provide to us.
JanP1 (Arizona)
Posts: 76
Posted:
Not a lawyer - just a board member who attends a lot of classes. I have some references from a class out here on Fiduciary responsibility but in the material it lists some Association cases in Fla. which may help you in your research - However the case reference all have names in them... That would break the rules-

HOAtalk moderator - are we granted permission when we are typing about research of and reference to case law????
TomS11 (Florida)
Posts: 29
Posted:
example, even when it is clear that board members took some action that was outside the scope of thier duties orwhen they pursue policies that are harmfull to the membership,all they have to do is claim "I belived I was doing good for the association" and they are then coverd under the d+o

example, the bod on a regular basis persues law suits backed up of course by an opinion from the assoc. attorney against its members or others and most of the time loses in court. the result of course is the members go broke and our attorney is buying new boats. If the membership could show the bod by the history of their own losing cases and other similar caselaw that their action are not in the best interest of the assoc. would that not be a breech of fiduciary responsibility? and would they then not be intittled to indemnification?
JosephW (Michigan)
Posts: 882
Posted:
Here are a few, these don't include the cases where the developer sued as a board member

First case: In this one the court held that individual association members were not entitled to recover damages against board members for breach of fiduciary duty because they did not prove they suffered individual harm based on the conduct of board members.

Camper Corral, Inc. v. Perantoni, 801 So. 2d 990 (Fla. Dist. Ct. App. 2001)

2) An officer of an association is bound to act with the same duty owed by a member of the board of directors.
Oceancrest Condominium Apartments, Inc. v. Donner, 504 So.2d 447 (Fla. App. 4 Dist. 1987)

3)Two members of a condominium association board breached their fiduciary duty to the association when they purchased common area and an associated recreational facilities lease.
Florida Discount Properties v. Windermere Condominium, Inc., No. 4D00-3002, Fla, Dist. Ct. App., June 20, 2001

4) Association's cause of action for breach of fiduciary duty by directors entering into 99-year recreation lease does not begin to accrue until damage has occurred.
Penthouse North Association, Inc. v. Lombardi, 461 So.2d 1350 (Fla. 1985)

5) A court applied the business-judgment rule to determine whether a director had breached a fiduciary duty in maintaining, repairing, or replacing association property.
Sonny Boy, L.L.C. v. Bhagwan Asnani, No. 5D03-59, Fla. App. Ct., May 28, 2004

6) Although a condominium statute may impose a fiduciary relationship between the association and unit owner, that relationship does not necessarily extend to prospective purchasers, thus the association has no duty to disclose structural defects to non-unit owners.
Maillard v. Dowdell, 528 So. 2d 512 (Fla. Dist. Ct. App. 1988) This one may be outdated

Joe

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DonnaS (Tennessee)
Posts: 5,671
Posted:

Joseph,
I have 4 seperate sets of documents and each ststes that the association may not sue the Developer. I wonder how this has been ignored by the State?
hoatalk (California)
Posts: 599
Posted:
Quote:
Posted By JanP1 on 01/16/2008 6:56 AM
Not a lawyer - just a board member who attends a lot of classes. I have some references from a class out here on Fiduciary responsibility but in the material it lists some Association cases in Fla. which may help you in your research - However the case reference all have names in them... That would break the rules-

HOAtalk moderator - are we granted permission when we are typing about research of and reference to case law????

Yes, you can reference public cases that have been published. Thanks for asking.

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JosephW (Michigan)
Posts: 882
Posted:
Just because they write it in doesn't necessarily mean it will hold up;

1) Avilia South Condominium Association, Inc. v. Kappa Corporation, CA. No. 48, 753 (Fla. 1977)

2) This one the developer won: King Mountain Condominium Association, Inc. et al. v. William Gundlach, et al., 425 So.2d 569 (Fla. App. 1982).

Do they specifically exclude certain areas for litigation in the documents?

Joe

Joseph West
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Community Associations Network, LLC
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DonnaS (Tennessee)
Posts: 5,671
Posted:

Joe,
Okay, you got mu curiosity up and I have wondered for years, how the non sueing of the developer got into my sets of Documents. I went to 720;3075 under "Prohibited Clauses' and this is sitting big and bold for all to read. I wonder when it was written so I'll research it now.

720.3075 Prohibited clauses in association documents.--

(1) It is declared that the public policy of this state prohibits the inclusion or enforcement of certain types of clauses in homeowners' association documents, including declaration of covenants, articles of incorporation, bylaws, or any other document of the association which binds members of the association, which either have the effect of or provide that:

(a) A developer has the unilateral ability and right to make changes to the homeowners' association documents after the transition of homeowners' association control in a community from the developer to the nondeveloper members, as set forth in s. 720.307, has occurred.

(b) A homeowners' association is prohibited or restricted from filing a lawsuit against the developer, or the homeowners' association is otherwise effectively prohibited or restricted from bringing a lawsuit against the developer.

(c) After the transition of homeowners' association control in a community from the developer to the nondeveloper members, as set forth in s. 720.307, has occurred, a developer is entitled to cast votes in an amount that exceeds one vote per residential lot.

Such clauses are declared null and void as against the public policy of this state.

(2) The public policy described in subsection (1) prohibits the inclusion or enforcement of such clauses created on or after the effective date of s. 3, chapter 98-261, Laws of Florida
JosephW (Michigan)
Posts: 882
Posted:
How did they get into those 4 sets of documents?

- Nobody checks HOA documents when they are created and filed; or

- They are older documents, before theat provision was put into the law; or

- they were boilerplated (copied) from older documents and nobody noticed or cared that these sections were in them; or

- the developer and/or attorney knew they weren't enforceable, but stuck them in anyway in hopes that the owners wouldn't know any better or it would delay them in filing any suit until after statute of limitations on most items was passed; or

- the attorney who drafted them didn't know HOA law; or

- how many different ways can we say stupid?

Joe


Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net

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