Would extend the limitation on the personal liability of a volunteer officer or director in a mixed use development in which that director does not own more than two residential separate interests.
Current Status: Chaptered
FindHOALaw Quick Summary:
Existing law limits the personal liability of a volunteer officer or director of an association that is exclusively residential for tortious acts or omissions, provided that the act or omission be made in good faith and within the scope of the authority of the board.
This bill would amend Civil Code Section 5800 to extend liability protection to volunteer officers and directors of mixed use developments, provided that the volunteer officer or director is a tenant of a residential separate interest or does not own more than two residential units, and whose ownership consists exclusively of residential separate interests.
It would also amend Civil Code Section 4041 to authorize the association to use the last address provided in writing by the owner, when an owner fails to annually provide his or her address to the association to which notices from the association are to be delivered.
**UPDATE: AB 1412 was signed by the Governor on September 25, 2017. Its changes to the law will become operative on January 1, 2018.
from the California Legislature's website
Related Topics
Related Statutes
- SB-981 (Archuleta) Common interest developments: document delivery.
- AB 2429 (Caballero). Common interest developments.
- SB 1173 (Vidak). Common interest developments: annual notices.
- Civil Code Section 4041. Annual Notice of Owner Contact Information.
- Corporations Code Section 7231.5. Liability of Volunteer Director or Officer; Business Judgment Rule.
- Corporations Code Section 7231. Duties of Directors; Liability.
- Corporations Code Section 5047.5. Protection of Volunteer Directors; Liability; Insurance.
- Corporations Code Section 5047.5. Protection of Volunteer Directors; Liability; Insurance.
- Civil Code Section 5800. Limitation of Director and Officer Liability.
Related Case Law
- Palm Springs Villas II HOA v. Parth
(2016) 248 Cal.App.4th 268
[Fiduciary Duty; Business Judgment Rule] The Business Judgment Rule does not automatically shield a HOA director from liability that may result from the director’s failure to exercise reasonable diligence or failure to act within the scope of the director’s authority under the HOA’s governing documents.