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Articles Posted in Business Judgment Rule

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Business Judgment Rule Doesn’t Apply When the Board Acts Outside its Authority

*Unpublished Case ISSUE: Is an HOA Board of Directors (“Board”) entitled to protection under the Business Judgment Rule (“BJR”) when it applies an unambiguous view restriction contained in the governing documents in a manner other than written? RULE: No.  In Lingenbrink v. Del Rayo Estates Homeowners Association, 2017 WL 1075062…

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Business Judgment Rule Does Not Protect the Willfully Ignorant

*New Case Law Volunteer homeowners association (“HOA”) directors are fiduciaries who are held to high standards of conduct when making decisions or taking actions on behalf of the communities they represent. Sometimes those decisions, which may seem reasonable at the time, ultimately lead to problems for the HOA or its…