Jump to content
The Official RONR Q & A Forums

Board of Directors Collective Breach Fiduciary Duty


Guest Damian

Recommended Posts

Under our By Laws, any damage to a unit or to a contiguous unit caused by a negligent action or inaction within the Owner's unit, makes that owner liable for damages. We had a hot water leak in our Unit (second floor of two stories, 4 units total), while present. We turned off the water within 1 hour and a restoration company was called and began restoration work within 2 hours. As a second home, we left and the Director's authorized restoration work of over $70k, including the removal of rotten, moldy wood, kitchen cabinets, kitchen floor and then sent us a bill indicating we were required to pay the insurance deductible of $25k. Since we are fully ensured for negligence, we requested documentation to show that our actions were 1) negligent pursuant to the Master Deed/Bylaws; and 2) that the $70k damage was directly related to our actions or inactions, and not some preexisting damage. The Management Company has not provided any documentation, except an itemization of the work and an email from the property manager indicating he & the Directors feel the installation/connection method used for the water heater was the reason for 100% of the damage. Last year an adjacent upper unit had a major water leak that went undetected for weeks as the units are primarily used as second homes. No evaluation was done on the unit at issue here. In addition, subsequently, the Management Company sent out letters informing all owners there is a structural defect in all lower units causing a moisture problem. Despite these two events, the Directors have ignored both my request & the requests of my insurance agent to provide any documentation at all. Rather, by a unanimous vote, they have sent the account to an attorney to pressure collection.

Absent a law suit, what steps can be done to force the Directors to follow the Master Deed/By Laws? Can the Directors be held personally liable for breach of fiduciary duty?

Link to comment
Share on other sites

Under our By Laws, any damage to a unit or to a contiguous unit caused by a negligent action or inaction within the Owner's unit, makes that owner liable for damages. We had a hot water leak in our Unit (second floor of two stories, 4 units total), while present. We turned off the water within 1 hour and a restoration company was called and began restoration work within 2 hours. As a second home, we left and the Director's authorized restoration work of over $70k, including the removal of rotten, moldy wood, kitchen cabinets, kitchen floor and then sent us a bill indicating we were required to pay the insurance deductible of $25k. Since we are fully ensured for negligence, we requested documentation to show that our actions were 1) negligent pursuant to the Master Deed/Bylaws; and 2) that the $70k damage was directly related to our actions or inactions, and not some preexisting damage. The Management Company has not provided any documentation, except an itemization of the work and an email from the property manager indicating he & the Directors feel the installation/connection method used for the water heater was the reason for 100% of the damage. Last year an adjacent upper unit had a major water leak that went undetected for weeks as the units are primarily used as second homes. No evaluation was done on the unit at issue here. In addition, subsequently, the Management Company sent out letters informing all owners there is a structural defect in all lower units causing a moisture problem. Despite these two events, the Directors have ignored both my request & the requests of my insurance agent to provide any documentation at all. Rather, by a unanimous vote, they have sent the account to an attorney to pressure collection.

Absent a law suit, what steps can be done to force the Directors to follow the Master Deed/By Laws? Can the Directors be held personally liable for breach of fiduciary duty?

There's really nothing there that qualifies as a question on parliamentary procedure.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...