Liability depends on complaint
Question: Are individual condominium board members personally liable for the various acts and decisions they make while holding office?
— E.D. Answer: Liability depends on the nature of the complaint or problem.
For example, if the parking garage collapses on a visitor’s car, a subsequent judgment against the corporation is considered a judgment against each owner.
Since directors are owners, each would be liable, but only for his or her proportionate share as a unit owner.
A judgment for unpaid wages is treated the same, although under corporate law, directors may have to bear the cost without reimbursement from the other unit owners.
Directors can get out of this type of personal liability if their actions were based on advice they received from an independent professional, such as an engineer, accountant or lawyer.
Many corporations buy directors insurance to cover personal liability.
The cost of this coverage is paid by the corporation and, ultimately, by every owner through their condo fees.
Insurance, however, will not cover an executive member if one of them assaults an owner or commit acts outside of his or her duties as a director.
Question: Have you ever heard of a position called director at large on a condominium board?
I have heard of it on some company boards, but never in a condo community. In my project, the director was not even elected.
What are your thoughts about this situation?
— M.A. Answer: A director of a condominium corporation must be a unit owner and must be elected by the owners.
The board can assign titles and responsibilities to each director.
It matters not whether they are called directors or directors at large. The key is that they are elected and do their job.