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Jul 19, 2012

Board Member Liability after Fletcher v. The Dakota, Inc.

board room

A recent decision of the Appellate Division, First Department,[1] Fletcher v. The Dakota, Inc.,[2] has significantly changed the circumstances in which tort claims may be asserted against board members of cooperatives  and condominiums in their personal, rather than only corporate, capacities.  We believe this decision is not the last word on this issue.  However, board members should be aware that until or unless the apparent holding of the case is rejected by the New York Court of Appeals or narrowed by the Appellate Division itself,  board members who are successfully sued personally and are not protected by sufficient insurance or… Read more