Becker & Poliakoff

Is your Association Safe from a Large Counsel Fee Award?

Is your Association Safe from a Large Counsel Fee Award?

Lately, there has been an uptick in lawsuits against our Associations when the majority of the Board decides to remove a Board Member who has allegedly become unruly or is proving to be very difficult to handle.  Most governing documents contain provisions whereby the Association indemnifies all Board Members against  losses, costs, and expenses that Board Members may incur due a claim by a third party, such as a judgment obtained by a unit owner against the Association. Normally, this is an excellent provision to protect the Board Members from lawsuits.