California Court Dismisses Homeowner’s Claims Against HOA Directors

UNREPORTED California Appellate Court decision (December 7, 2015).

In this case, a condominium owner sued her homeowners association, its property management company, and its directors in their individual capacities for damage caused to her condominium unit that the owner alleged resulted from improper maintenance or repair of common areas. The owner’s action was based on claims that the association and the directors breached fiduciary duties owed to the owner. Factually, despite having a duty to maintain the common areas, the association failed to have necessary waterproofing work done and as a result, the owner’s property was damaged as a result of water intrusion. The trial court dismissed the owner’s claims against the individual directors after ruling that their personal involvement was only as board members, and board members do not personally have a fiduciary duty to the homeowners. The homeowner appealed the Court’s dismissal of the individual directors.