What Board Members Need To Know...

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 and and former board member Lisa Kettner of the Sawgrass Association of Virginia Beach have to pay some condo owners called 10 On Your Side, $30,000 for their attorney fees.  That’s right, the individual board members have to dig deep into their own pockets and pay the plaintiffs.  It happens all the time and it is a wonder why board members don’t take action to avoid board member liability. These board members breached the fiduciary duty in doing things like denying plaintiff owners copies of budgets and spending statements from the board. The board members of a community association have an obligation under most state statutes to maintain and to allow owners to inspect most board business records. Records typically include board members, resolutions, financial documents of the receipts and expenditures affecting the operation and administration of the condominium, etc, etc, etc.  Board member emails are another category of documents that board members often overlook and fail to manage and keep. When owners request an inspection, board members ought to manage those requests and make sure that they are honored and managed appropriately.  Otherwise board member

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