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Florida Condo & HOA Legal Blog News & Updates on Condo & HOA Laws & Legislation in the State of Florida

Category Archives: Fiduciary Duty of Board of Directors

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Association Board Members Should Keep Meeting Minutes

Posted in Fiduciary Duty of Board of Directors, Meetings, Reader Q&A

Question:   In our condominium association, prior to our board meetings, we post notice of an “agenda meeting.”  The purpose of this meeting is to plan the agenda for an upcoming board meeting, notice of which is then timely posted. Notice of the agenda meeting is posted and the meeting is open to owners to attend…. Continue Reading

Parking Regulations Are To Be Respected, Even By Association Directors

Posted in Fiduciary Duty of Board of Directors, Reader Q&A

Question: Our condominium association has limited parking. The president of our association has been allowing a friend of his who lives near the condominium to park his truck in a guest space for extended periods of time. When asked, the president claims that the friend is his “guest” and that he is doing nothing wrong…. Continue Reading

Condos & HOAs can save money by conserving water

Posted in Budgets, Reserves & Financial, Fiduciary Duty of Board of Directors, Operations

The legislature is concerned about the quality of water delivered to end users in this state. While water rates have increased (in some cases significantly) over the past few years, apparently those increases do not translate to better water quality. The bill is designed to create additional water standards and allow customers to petition to… Continue Reading

Condo Owner Awarded $890,000 in Lawsuit Against Association

Posted in Fiduciary Duty of Board of Directors, Liability

Everyone is rightfully concerned about liability these days.  The Trayvon Martin tragedy turned into a lawsuit against the association.  When a car crashed into a boy riding a bicycle, the association was held liable for several millions of dollars.  A jury awarded $20 million in damages to a woman who sued after she was raped in her… Continue Reading

Broward Condos & HOAs subject to new screening regulations

Posted in Discrimination/Fair Housing, Fiduciary Duty of Board of Directors

    On September 10, Broward County Commissioners adopted changes to the local Human Rights Ordinance after hearing testimony of community leaders largely united in opposition thereto.  BrowardCounty’s Human Rights Ordinance already prohibited discrimination in housing and employment practices.  It already included protections beyond the Florida Statutes and Federal Law.  For example, the Ordinance prohibits… Continue Reading

Proposed opinion defining actions considered UPL for CAMs leaves unanswered questions

Posted in Fiduciary Duty of Board of Directors, Operations

The  Constitution of the State of Florida gives  the Supreme Court of Florida the power to regulate attorney conduct. The Supreme Court of Florida also has power to prevent actions by individuals who are not licensed to practice law in Florida.  UPL, or the unlicensed practice of law, is a crime in Florida. Defining what constitutes… Continue Reading

Condo & HOA Common Expenses: Can the board spend your money for that?

Posted in Budgets, Reserves & Financial, Fiduciary Duty of Board of Directors

Last year we featured an article in our Community Update publication explaining how to evaluate whether certain expenses are appropriate in community associations. The term “expenses” is probably defined in your Condo/HOA documents and it is likely that that definition encompasses expenses that seem to go beyond the strict statutory definitions. Section 718.115, Florida Statutes… Continue Reading

Potential Conflict of Interest Does Not Automatically Disqualify a Board Candidate

Posted in Construction Issues & Contractual Disputes, Fiduciary Duty of Board of Directors, Operations, Reader Q&A

Question:  In our upcoming association election, one of the board candidates is related to the owners of a company which does business in our condominium, through a substantial contract which was subject to competitive bidding. Does this disqualify the individual from running for the board?  A.I. (via e-mail) Answer:  No. The Florida Condominium Act sets… Continue Reading

Condo Associations & HOAs Losing Millions Nationwide

Posted in Budgets, Reserves & Financial, Fiduciary Duty of Board of Directors

According to recent reports, more than 1.2 million worthless checks enter the banking system every day in the United States.  Check fraud losses account for more than 20 billion dollars per year and the number of cases is increasing by approximately 25% each year. I know from my own experience with community associations that fraud,… Continue Reading

Are You a Prudent Investor?

Posted in Assessment Collection, Fiduciary Duty of Board of Directors

Investing the Association’s Funds?  If so you should be familiar with the Prudent Investor Rule. Does your association have a written policy with regard to investment of association funds? If so, does the board of directors monitor the investment to ensure compliance with the policy, and, is the policy reviewed and updated from time to time?… Continue Reading

Sometimes Offense is not the Best Defense

Posted in Assessment Collection, Fiduciary Duty of Board of Directors, Foreclosures

A case recently issued by the 3rd District Court of Appeal confirms unit owner obligations to pay validly adopted assessments. The Court in Coral Way Condominium Investments, Inc. v. 21/22 Condominium Association, Inc., recited two important statements, one of which was made by the Florida Supreme Court in 1994 in the Ocean Trail Unit Association,… Continue Reading

D&O Coverage Exclusions Revisited / Eastpointe Case Upheld

Posted in Arbitration & Court Rulings, Construction Issues & Contractual Disputes, Fiduciary Duty of Board of Directors, Insurance

I talked about the distinction between a carrier’s duty to defend and the duty to indemnify early in the year in connection with the U.S. District Court’s ruling that a D&O policy did not provide coverage for claims of breach of fiduciary duty, breach of contract and negligence. In Eastpointe Condominium I Asn. Inc. v. Travelers Casualty & Surety Company an owner sued the… Continue Reading