Ashley N. Landrum and Jim Wright (Palm Beach) (D&O) obtained a Dismissal with Prejudice of all claims contained in an Amended Complaint asserted against current Board Members of a Condominium Association. The Plaintiff, an owner, filed suit against the Association and current Board Members related to an alleged failure to adequately maintain and repair the Common Elements causing damage to the unit, including termite damage. The Individual Defendants moved to dismiss the Amended Complaint because they are statutorily immune from suit pursuant to Florida Statute § 617.0834 because at all times material they were a member of the Board of Directors of the Condominium Association, held the position as a director, and any action or decision was made in furtherance to The Condominium Association, Inc.’s management or policy for renovations.
The Court found it is very clear that the law in Florida is intended to shield individuals who serve on corporate nonprofit and association boards from any kind of individual liability. As the cases make very clear, that makes sense from a policy perspective because there would be a huge impact on all of these entities’ ability to find people to serve on such boards on a voluntary basis otherwise. Absent fraud, self-dealing, and betrayal of trust, directors are not personally liable for decisions they make as a directors of an Association. Therefore, the Court dismissed the Plaintiff’s Amended Complaint and all claims against the individuals with prejudice.