Homeowners Associations – Business Judgment Rule

Palm Springs Villa II Homeowners Association, Inc. v. Erna Parth Court of Appeal, Fourth Appellate District (June 21, 2016).  The “business judgment rule” refers to a judicial policy of deference to the business judgment of corporate directors in the exercise of their broad discretion to make corporate decisions. Under this rule, a director is not liable for a mistake in business judgment which is made in good faith and in what he or she believes to be the best interests of the corporation, where no conflict of interest exists.    Read the article…………..


Related Articles

Association told to fix condo balconies

A judge has ruled that Effingham Green Condominium associations are responsible for repairs of faulty balconies identified a year ago,

Legislation aimed at delinquent homeowner association members (DE)

“Not only are negligent homeowners getting a free ride at the expense of their neighbors, their lack of participation can

Oregon Policyholders and Judgment Creditors Get Big Win on Insurance Coverage Issues

The Oregon Court of Appeals handed down a lengthy opinion upholding a money judgment awarded in favor of a judgment