Florida courts have allowed personal liability in only a few instances – usually in cases where a director has gained monetary or other benefits at the expense of a condo association.
The law that sets the standard for how directors must perform is Florida Statute ยง617.0834.
According to this law, a director cannot be held personally liable for his actions unless one of three things happen:
1. He commits an act that violates a criminal law statute with reasonable knowledge that his actions are unlawful;
2. He acts in a way that is considered reckless, in bad faith or with malicious intent and disregard for safety, property and rights; and/or
3. The director engages in a transaction that is self-beneficial.
For the most part, the courts have made it clear that absent one of the elements mentioned above, condo directors are immune from personal liability.
One example of how the courts are applying the law can be seen in Munder v. Circle One Condominium, Inc. 596 So.2d 144 (Fla. 4th DCA 1992). The Munder case stems from a condo director’s failure to renew a fire insurance policy for the association’s clubhouse. He was sued for breach of fiduciary duty for this failure to act. The court decided that while the director may have been negligent, he cannot be held personally liable for damages caused by his errors.
Another example is Taylor v. Wellington Station Condominium Association, Inc., 633 So.2d 43 (Fla. 5th DCA 1994). In this case, the court stated that personal liability cannot be triggered unless fraud, self-dealing or unjust enrichment is involved.
In a nutshell, it is difficult to hold an association director liable for his actions absent bad faith or malicious intent.
If you are involved in a dispute with your condo association due to acts of bad faith, we want to hear from you. You can use this form to contact us or call (954) 779-7009.
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Tags: bad faith, condo association, Florida, malicious intent, personal liability
