Board members have a fiduciary duty to seek the advice of the appropriate professionals to guide them in making decisions for their associations. Community managers have an affirmative regulatory obligation and a fiduciary duty to direct board members to seek the advice of appropriate professionals. Obtaining a legal opinion from a community association law practitioner for guidance through a decision with potential legal ramifications will satisfy those obligations.
Further, where directors obtain and follow the reasonable opinion of a community association law attorney to address matters facing their association they are shielded from liability by the “business judgment rule.” Where directors fail to obtain or follow such advice, not only are they not protected by the “business judgment rule”, they have likely exposed themselves to liability for breach of their fiduciary duty to their association and its members.
Fuller Jenkins attorneys stand ready to provide quick access to the professional legal opinions needed by your board to address the many complicated legal issues facing your community.
