|
Q.When can the HOA directors and officers be held personally liable for damages?
A.Pursuant to California law, a volunteer director or officer cannot be held personally liable for damages resulting from his/her service to the homeowners association (HOA) so long as the volunteer director or officer performs his or her duties (i) in good faith, (ii) in a manner which s/he/ believes to be in the best interests of the HOA, and (iii) with such care, including reasonable inquiry, as a reasonably prudent person in a like position would exercise in similar circumstances. Directors are entitled to rely on information and opinions provided by the homeowner association’s officers, committees, and hired experts.
Most association governing documents also provide that the HOA will indemnify and hold the directors and officers harmless unless absent gross negligence, intentional misconduct, or fraud. Additionally, most governing documents require the HOA to carry director and officer liability insurance. Pursuant to California if the HOA maintains directors and officer's liability insurance, the directors and/or officers cannot be held personally liable even if the damages exceed the insurance coverage.
condo, condominium, townhouse, townhome, town home, home owner association, condominium laws, condo laws, california condo laws, condominium codes, HOA laws
|
|
