Insurance is Not Enough Protection

Imagine this scenario: a person volunteers their time, and spends countless hours working for the betterment of their community. Many of these hours are late at night or on weekends. They and their fellow Board members exchange countless emails at all hours of the day. The emails are often sent from their work or personal computers or phones. One of the many decisions made by the Board is challenged by a member of the Association who files a lawsuit. In seeking to examine what discussion the Board members had with management or other Board members on the issue, the member’s attorney requests that the Association produce all correspondence related to the issue, and issues a subpoena to each Director requesting they produce all Association related emails.

Florida Property Manager Embezzles $228k from 100 Unit Condo


The board finally woke up and noticed that property manager Kristin Glansen was stealing money from the residents.  Over two years, $228,000.  The board is now suing to try to recover the money which is likely long gone and the …

HOA Treasurer Steals over $120,000 from Association


Aweful.  Just awful.  Not just the treasurer/manager/thief is awful, but the board members who were entrusted with all of that money by the members of the HOA.  Sure there are always bad people who will pull the cover over your …

CT Nonprofit Treasurer Guilty of Embezzling over $150,000


Nonprofit corporation board members have the same problem that board members all over the world have; crooked fellow board members.  In Connecticut, Thomas Recck plead guilty to federal crimes for stealing over $150,000 from a nonprofit canine search and rescue …

Little League Board President Embezzles $20,000


Jeremy Cardera embezzled $20,708 from the Pleasanton California American Little League while he served as league president — and bank statements, hotel records and social media photos verified that he used some of the money to finance a family trip. …

Board Members Held to Higher Standard; Otherwise Personal Liability


Some board members think that they are immune to personal liability. Some do not think at all.  They take the job of board member and do not realize that they are now held to a fiduciary duty to their organization’s …

VA Board Member’s Negligently Failed to Maintain/Provide Condo Records; $30,000 Personally Liable


Like most state courts across the county, a court in Virginia took a hard line against individual community association board members holding them personally liable for their actions and inactions as board members.  Now, board members Kim Edwards, Brenda Shaffer …

Board Member Liability Depends on Records which You Don’t Want to Leave in Other’s Hands


Usually you find board members trying to get records back from management who they no longer want to manage them.  Boards turn over records to management and management holds them hostage.  That is a huge issue that board members can …

Rhode Island Manager of Timeshare Charged with Stealing More the One Half Million Dollars


This is what happens when board members do not watch management..  Don’t get me wrong.  There are plenty of trustworthy managers out there but their tails are not on the line. Most have management contracts that insulate them from liability …

Manhattan Coop Board Sued by Disabled Woman Who Needs Service Dog


 

Elizabeth Woodard is a cooperative resident in a building located on East 86th Street in Manhattan NY.  The board members claim her service animal makes too much noise and thus Olivia the dog needs to go.  Elizabeth suffers from …

Your Fellow Board Members and Property Managers Can Steal; Board Members Beware or Face Personal Liability Yourself


Authorities in Baton Rouge, La., charged former HOA board president David Heroman with 10 counts of felony theft for allegedly stealing $29,000 from Riverband Lakes Homeowners Association.  Heroman wrote 10 checks out to cash and signed them while serving as …

Why Board Members Need To Visit This Site...

A board member must understand and appreciate that they head an organization that is often responsible for millions of dollars in assets, and while it is admirable to even consider assuming this time-consuming, sometimes thankless task, a board member's most important responsibilities lie not in ensuring the sociability of the board itself, but in upholding the character, use, and occupancy of the co-op or condo community. Each potential board member must come to respect the potential for serious liability inherent in any position of such broad power and scope.

Because officers and board members owe a fiduciary duty to the owners and shareholders in their building, they must act in a manner reasonably related to the exercise of that duty, and failure to do so will result in liability for both the board and for the individual directors themselves.

Accordingly, the developer, officer, director, manager, and attorney involved in the creation, administration, and operation of a co-op or condo's governing board must deeply respect and appreciate this aspect of the liability concept. For unless each member of the board or the association clearly understand the responsibilities inherent in their position - and acts in accord with that responsibility - the millions of dollars in assets that board governs can be seriously compromised. Once such assets and savings are put at risk, board members can be sure that litigation cannot be far behind.

It is the intention of this web site to bring focus and awareness to board members of their liability. By publishing real life situations where board members have or could be compromised and how board members might navigate and or mitigate their liability exposure.