Court of Appeals Affirms Dismissal of Action Against Association President for Breach of Fiduciary Duty
The Court of Appeals issued an opinion recently affirming the dismissal of a claim for breach of fiduciary duty against an association president. In Taddei v. Village Creek Property Owners Association, Inc. an owner brought a lawsuit against its association and the president of the association who was also on the board. The owner’s claim was for breach of fiduciary duty primarily based on the contention that the president made statements which were in favor of a proposed amendment to change the way in which assessments were calculated and which amendment would have benefited him personally because he owned multiple lots. The trial court and Court of Appeals rejected the arguments because (1) the other owners were aware the president owned multiple lots; and (2) the amendment was fair to the association. In addition, the Court of Appeals specifically noted that the president had consulted with counsel about the proposed amendment and had kept the owners apprised of his conversations with counsel for the association regarding the amendment. Under these facts, the plaintiff’s claims were insufficient to make out a claim against the president even though the president owned multiple lots and would have benefited from the amendment personally. To read the opinion click here.