HOAs: The Business Judgment Rule protects boards but is not a free pass
Courts normally defer to HOA boards as long as the Business Judgment Rule is followed. The State Supreme Court said so in 1999, while deciding Lambden v. La Jolla Shores. In the Lambden case, a homeowner contended the board should have responded to a termite problem with fumigation instead of spot treatment. The court held that as long as the board followed the rule, “courts should defer to the board’s authority and presumed expertise.” Read the article………….