Condo Media - May 2021 - 42
The Region
RHODE ISLAND
Board Member and
Unit Owner Apathy
Disassociation Puts Everyone at Risk
[by Mary-Joy Howes, Esq.]
Recently, a property manager told
me that a unit owner approached
him stating that their association " has
an inactive board " and " no one knows
what is going on. " Often the cause of
such apathy is that the board is made
up of members who only volunteered
because " no one else would do it " and
they are generally disinterested from
the onset. Regardless of what led to the
state of such an association, however, an
immediate, hard restart is imperative.
STATUTE EXPECTATIONS
The Rhode Island Condominium Act,
R.I. Gen. Laws 34-36.1 et seq. ( " The Act " )
42
CONDOMEDIA May 2021
provides that a board may act in all
instances on behalf of the association (except as otherwise provided in
statute, the declaration, and bylaws).
As outlined in Section 3.02 of the
Act, associations have many powers
and responsibilities and include,
among other things, the duty to
enforce the payment of assessments,
promulgation of rules, overseeing the
maintenance of the common areas,
maintaining master policies of insurance, and enforcement of the rules
and regulations.
The Act sets forth standards of conduct and provides for consequences
for failure to perform. By way of example, Section 1.11 imposes an obligation of good faith in the performance
of duties, Section 3.03 specifically
states that board members are held
to a standard of ordinary and reasonable care in the performance of their
duties,* and pursuant to Section 4.17
of the Act, punitive damages may be
awarded for willful failure to comply
with the Act, as well as attorney's fees.
An apathetic board can cripple an
association and expose the association, unit owners, board members,
and even a property manager to
liability. For example, insurance
policies can be inadequate or even
lapse because the current board
is dysfunctional and uninvolved.
If there is no insurance in place,
this would be catastrophic in the
event of a fire or other serious event.
Additionally, lack of insurance also
means no protection for board members as far as directors and officers
insurance is concerned.
Condo Media - May 2021
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Contents
Condo Media - May 2021 - Cover1
Condo Media - May 2021 - Cover2
Condo Media - May 2021 - Contents
Condo Media - May 2021 - 2
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