Except for an exceptional circumstance, our HOA Dispute Attorneys do not name individual board of director members in lawsuits against the HOA. Under the Lamden “Judicial Deference” Rule, board of director members, individually sued, will be offered protection for their business decisions related to maintenance and repair obligations of an association. See Lamden v. La Jolla Shores Clubdominium Homeowners Assn. (1999) 21 Cal. 4th 249. Judicial deference will be afforded to board members in their decision making process unless it can be shown that the decision was arbitrary or discriminatory in nature. While the HOA itself may be liable for negligent or bad decisions leading to injury, board members likely will be insulated from individual liability.
With that said, an HOA board member can still be held to a standard of care in serving as a director. California Corporations Code Section 7231.5(a) states the requirements to be met by a board member when allegations arise that the board member failed to discharge their duties as a director. So long as the board member “(1) performs the duties of office in good faith; (2) performs the duties of office in a manner believed to be in the best interests of the corporation; and (3) performs the duties of office “with such care, including reasonable inquiry, as an ordinary prudent person in a like position would use under similar circumstances” then a board member will be held to have discharged their duties.
Therefore, when in a dispute with your HOA, the conduct of the board of directors, whether in their investigation of a particular issue or problem, or in discharging their duties, will be directly relevant to the propriety of the HOA’s decision at the center of the dispute.
If you have an HOA dispute or would like to speak to an HOA Dispute Attorney, contact us today for a free consultation and case evaluation.