Board Member of a Condo Association
When you think about what it means to be a board member of a Condominium Association, it doesn’t take long to realize that there is a lot more to it than winning elections and running meetings. The office of a board member comes with a great deal of responsibility – and potential liability. First and foremost, under Florida law, a condominium association is either going to be a corporation for profit, or a not for profit corporate entity. This means that, like any other corporation, those who make up the board of directors of a condo association, by statute, have a fiduciary duty to all unit owners. You might be asking what exactly this duty entails.
It is important to consult with an experienced attorney who is familiar with Florida condominium law, especially in matters such as this, but in short, the fiduciary relationship between the board and the unit owners requires the board to act in good faith and in the best interests of the unit owners while carrying out their duties. This means that an individual board member would be personally liable if, for instance, they engaged in fraud, self-dealing, or willful misconduct. An individual board member could also potentially face civil penalties if the state finds that there has been a violation of Florida’s Condominium Act. Then, of course, there are situations where a board member can be held liable for committing a tort (a civil wrong resulting in the injury of another and the payment of damages).
Liability in a Florida Condominium Association
The good news for board members is that because of the corporate structure of the condominium association, board members will generally avoid personal liability for many lawsuits that come along. Situations involving negligence – such as failing to maintain the grounds in reasonable condition or failing to correct defective conditions – will leave the Association itself open to liability, but not individual board members, who are generally not personally liable for negligence. This also means that board members, thanks to the “business judgment rule,” will typically avoid liability when it comes to business and even rule-making decisions as long as the board acts reasonably in making those decisions.
Of course, the goal of any board is to avoid liability all together. A good practice then would be to first: remember the fiduciary duty – acting in good faith, acting in the best interest of the unit owners, and exercising due care and diligence in carrying out your duties for the community – and second: consult with an condo association attorney who is experienced in dealing with issues faced by Florida condominium and homeowners association boards. An experienced attorney can help navigate the intricacies of association law and potentially avoid liability in most cases.