Why Boards Should Never Ignore Formalities

The client’s tale: A condominium board had instituted litigation against the sponsor. The sponsor moved to dismiss, claiming that the board did not have the authority to act. The court, in analyzing the facts, found that the board had clear statutory authority to institute litigation, but held that because the board had not adhered to the proper procedure — it had not called a meeting to authorize the litigation — it did not have the authority to file suit. As a result, the suit was dismissed.  Read more………

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