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Traditionally, the Business Judgment Rule insulated volunteer directors from honest mistakes in judgment. The Model ABA Rule adopted in more than thirty states includes language suggesting that the application of the Business Judgment Rule is dependent upon demonstrating reasonable diligence. A California Court has interpreted such language as creating a reasonable diligence (i.e., negligence) standard. Does this case signal the end of Business Judgment Rule's protection for honest mistakes? If so, what are the legal and insurance impacts?.
Special Note: This program is a recorded education session from the 2018 CAI Law Seminar.
Duration: 70 minutes
Program Description
Traditionally, the Business Judgment Rule insulated volunteer directors from honest mistakes in judgment. The Model ABA Rule adopted in more than thirty states includes language suggesting that the application of the Business Judgment Rule is dependent upon demonstrating reasonable diligence. A California Court has interpreted such language as creating a reasonable diligence (i.e., negligence) standard. Does this case signal the end of Business Judgment Rule's protection for honest mistakes? If so, what are the legal and insurance impacts?
Speakers:
- Joel W. Meskin, Esq., CIRMS, McGowan Program Administrators, Fairview Park, OH has been Vice President – Community Association Insurance and Risk Management, McGowan & Company, Inc., since January, 2005. McGowan & Company, Inc., now known as McGowan Program Administrators is a leading provider of Community Association and Property Manager Insurance Products nationwide. Joel is the former Senior Vice President, Ian H. Graham Insurance from 2001 and 2004. Joel is an attorney who spent 15 years specializing in insurance coverage, business and related litigation. Joel is also an insurance broker who first obtained his license in 1981. He obtained the designation of a Community Insurance & Risk Management Specialist.
- Thomas Ware, II, Esq., Kulik Gottesman Siegel & Ware LLP, Sherman Oaks, CA For the past twenty-seven years, Mr. Ware’s practice has focused on the representation of nonprofit homeowners associations, their volunteer directors and officers, and HOA property managers. He has extensive experience in representing common interest developments, non-profit homeowners associations, and their volunteer directors in connection with general corporate issues, real estate matters, litigation, insurance, fidelity bond claims, and appellate matters. Mr. Ware was one of the attorneys of record for the prevailing parties in the landmark California Supreme Court case Nahrstedt v. Lakeside Village Condominium Association which established the legal framework and standards for enforcing CC&R provisions.
Continuing Education Credit
This program provides 1 credit toward:
- Certified Manager of Community Associations recertification
- Association Management Specialist redesignation
- Professional Community Association Manager redesignation
To earn credit, you must be personally registered for this program and print the certificate of completion to document your participation.
Manager Certifications and
Designations
Certified Manager of Community Associations
(CMCA®) /Association Management Specialist
(AMS®) /Professional Community Association Manager
(PCAM®) /Large-Scale Manager
(LMS®)
Management Company Designation
Accredited Association Management Company
(AAMC®)
Service Provider Designations and
Distinctions
Reserve Specialist
(RS®)/Community Insurance and Risk Management
Specialist (CIRMS®)/Educated Business
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