BY SAME CONDO COUNCIL'S ADDITIONAL, "ULTRA VIRES" NO-INSURANCE ACTIONS.
In South Carolina, it has been held that "ultra vires" decisions of a condominium Board of Directors' management council evaluating certain water intrusions as requiring alleged individual assessments on unit owners for which there was no insurance, as opposed to declaring the water intrusion a result of common elements which were the responsibility of the Board, did not jeopardize the Board's defense of other "intra vires" conduct of the same condo council. Fisher v. Shipyard Village Council of Co-Owners, Inc., 415 S.C. 256, 781 S.E.2d 903 (2016).
In other words, apparently the fact that this particular Condo Board did some things within its authority was unchanged by the fact that allegedly this council also did some other things that were not.
The case involved the "business judgment rule" defense by the Condo's Board of Directors to liability, which as the Court put it "only applies where a corporation acts within its authority, without corrupt motives, and in good faith". Fisher v. Shipyard Village Council of Co-Owners, Inc., 415 S.C. 256, 781 S.E.2d 903, 911 (2016).
Please Read The Disclaimer. ©2016 by Dennis J. Wall, author of "Insurance Claims and Issues" (forthcoming Thomson Reuters 2016). All rights reserved.