Most likely a spot bill, this bill would make nonsubstantive changes related to director liability. On March 15, 2018, the proposed text of AB 2429 was gutted and amended to no longer apply to common interest developments.
Current Status: Dead
FindHOALaw Quick Summary:
Existing law limits the personal liability of a volunteer officer or director of an association that is residential or mixed-use 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.
Most likely a spot bill, this bill would make nonsubstantive changes Civil Code Section 5800.
To read the current text of AB 2429, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 2429 as it progresses through the Legislature.
**UPDATE: On March 15, 2018, the proposed text of AB 2429 was gutted and amended to no longer apply to common interest developments.
Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments. Existing law requires a common interest development to be managed by an association that may be incorporated or unincorporated. Existing law limits the personal liability for tortious acts or omissions of a volunteer officer or director of an association that manages a common development that is residential or mixed use, if certain criteria are met.
from the California Legislature's website
Related Topics
Related Statutes
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.