Community association directors and officers need to understand the duties they owe to their association and fellow owners, the nature of those duties, and the liability performing those duties may bring. How much a volunteer leader knows about his or her state’s standard of care can be the difference between liability and immunity.
Standards of Care provides a survey of each state’s standard of care for community association directors and officers, a brief description of the standards by which they must perform their duties and recommendations for complying with their state’s standard of care. Also includes a discussion of notable trends in state legislation, how the standard of care may evolve and a chart of the standard of care by state.
CONTENTS
I. Introduction
II. Standards of Care
The Duty of Care
The Duty of Loyalty
III. Standards of Review vs. Standards of Care
The Business Judgment Rule
The Reasonableness Standard
IV. Director and Officer Standards of Care by State
V. Trending Standards: Observations and Predictions:
Observations on the Current Landscape of Community Association Director and Officer Standards
Change on the Horizon?
Conclusion
End Notes
Appendix: Chart of Standards of Care by State
ABOUT THE AUTHORS
Marc Markel
Marc D. Markel is a shareholder of the Texas law firm of Roberts Markel Weinberg PC, with offices in Houston, Austin, Dallas, San Antonio, and Sugar Land. He attended South Texas College of Law and was licensed to practice law in 1979. He is Board Certified in Residential and Commercial Real Estate Law by the Texas Board of Legal Specialization and is a Member of the College of the State Bar of Texas. He is licensed to practice in all courts in the State of Texas, the U.S. Supreme Court, the U.S. District Court for the Southern, Northern, Western and Eastern Districts of Texas, and the U.S. Fifth and Eleventh Circuit Courts. Marc is also a certified mediator and acts upon request as an arbiter.
Marc is a member of the Texas College of Real Estate Attorneys; a charter member and the only member in Texas of the College of Community Association Lawyers; a member of the Houston, Fort Bend, Bexar County, Dallas, and American Bar Association. Since 2005 Marc has been listed on Thomson Reuters Super Lawyers and has also been featured in the Super Lawyers, "Corporate Counsel" Edition 2010 magazine in the area of Real Estate. Marc is AV rated by Martindale-Hubbell, a peer rated review, which is the highest possible rating for both competence and ethics. His firm, Roberts Markel Weinberg is also AV rated and is listed on Martindale-Hubbell’s list of Preeminent Law Firms.
His CAI experience includes: Greater Houston Chapter: past president and past director; CAI National: member, Board of Trustees 2003-2005; member, Business Partners Council 2004-2005; past president and former director, the Foundation for Community Association Research; member, Foundation for Community Association Research research committee; past chair, Presidents’ Club; past chair, Texas Legislative Action Committee; and past board member and current Advisory Board chair, Texas Community Association Advocates Inc. Marc is also a member of CAI’s national teaching faculty.
Jeffrey Roberts
Jeffrey D. Roberts is a founding shareholder of Roberts Markel Weinberg PC, with offices in Houston, Austin, Dallas, San Antonio, and Sugar Land. Since 1979, Jeff has maintained an active trial practice and has earned a reputation for successfully handling complex litigation. He is Board Certified in both Civil Trial Law and Personal Injury Trial Law by the Texas Board of Legal Specialization and heads the general litigation section at Roberts Markel Weinberg PC. Jeff is a member of the American Board of Trial Advocates. He has vast trial experience in numerous areas of law, including prosecution and defense of major personal injury claims, real estate, errors and omissions, maritime, commercial, toxic tort, employment practices litigation and personal injury, which has earned him a reputation for successfully handling complex litigation. In addition to his extensive trial experience in Texas, Jeff also acts as national counsel for a number of chemical and product manufacturers. Jeff holds an AV rating from Martindale-Hubbell, the highest rating available in both competence and ethics.
Jeff received his Bachelor of Arts degree from University of Houston in 1975 and went on to obtain his Doctor of Jurisprudence degree from the University of Houston in 1978 and was admitted to the State Bar of Texas in 1979. Jeff is licensed to practice before the Supreme Court of the United States, the United States Courts of Appeals for the Fifth and Eleventh Circuits, the United States District Courts for the Southern, Eastern, Northern and Western Districts of Texas, and all courts, trial and appellate, within the State of Texas. He is a member of the State Bar of Texas and a member of the Houston Bar Association.
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