Association Not Liable for Damaging Individual Unit Owners

Facts: An association sued two members for not paying maintenance fees. The members filed a counterclaim alleging that the association had caused monetary damage to them by “engaging in bad faith conduct” by its involvement in a lawsuit filed by a group of other members in the community who accused the association of withholding financial documents. The members asserted that they had been rejected for a reverse mortgage loan on their unit because of that lawsuit. A trial court ruled in favor of the association without a trial. The members appealed.


The resource you requested is available only to current members.  

Please log in or start your membership account.

Member Log In

Trouble Logging In?
Reset your password. Or contact us

Need to Renew Your Membership?
If your membership has expired and you wish to renew, visit the Membership Renewal Page.

Sign up for your free trial membership and access this resource now. 

Community Association Management Insider helps community association managers keep their co-ops, condominiums, and homeowner’s associations running effectively and within budget — and all in the bounds of state, local, and federal law, as well as their governing documents.

Click here for quick FREE trial sign-up.

As a member, you get:

  • Model tools, such as letters to members, bylaws, and contractor agreements
  • Step-by-step management techniques
  • Updates on new laws and court cases that impact you
  • Easy-to-implement solutions to managers' thorniest challenges.

Community Association Management Insider will show you how to:

  • Avoid liability and get indemnity
  • Effectively and economically manage maintenance and repairs
  • Get better deals from contractors
  • Get the right insurance coverage
  • And much, much more

Sign up for your free trial membership and access this resource now »