|Negligence in community asset management||<– Date –> <– Thread –>|
|From: Norman Gauss (normangausscharter.net)|
|Date: Mon, 9 Jul 2012 10:32:35 -0700 (PDT)|
When a separate Board is charged with managing the community assets and it is found to be negligent, the recourse is to sue individuals of the Board and use their private assets to satisfy any judgment against them. Directors insurance is a common way to protect Board members. However, if the whole community is found to be negligent in its management, it cannot sue itself. Thus there is no recourse. The community can be socked with huge financial losses if attention was not addressed to preventative measures. A good example is disaster insurance. If the community decides not to have disaster insurance and a disaster happens, there is no recourse. However, if the Board decides not to have disaster insurance, it can be held liable if a disaster occurs. Another example is liability insurance. If the liability insurance is insufficient or if the whole community decides that it does not need it, there is no recourse if someone is seriously hurt because of negligence in maintaining safe buildings or grounds. The Board can be sued, but the community cannot sue itself. Norm Gauss Oak Creek Commons Paso Robles, CA
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