Director Liable to Association For Breach of Fiduciary Duty
Director-manager charged unauthorized fees, used funds for personal benefit, falsified records
A member of the board of directors of a nonprofit condominium association who also managed the association has been found liable for breach of duty to the association and ordered to pay damages and the association’s attorney fees. An appellate court has affirmed a trial court decision it said was supported by competent, credible evidence. ( Mauger v. Inner Circle Condominium Owners Association, Ct. of App., OH, No. 10CA0046, 3/31/11 .) In 2004, the Association hired M2 Management Corporation, which was owned and operated by the president of the Association’s board, to serve under a 5-year contract as its general manager. It agreed to pay $3000 a month for management services plus...
The full text of this article is available to paid subscribers only. Login or subscribe to read more