Condo Media - March 2015 - 45

ent, however, is that when individuals
sign up for board positions, their actions (or inaction) may ultimately run
afoul of Rhode Island law.
The Rhode Island Condominium
Act at 34-36.1-1.11 states that, "Every
contract or duty governed by this
chapter imposes an obligation of good
faith in its performance or enforcement." In addition to the obligation of
good faith applicable to all involved in
condominium transactions, Section
34-36.1-3.03 specifically states: "In the
performance of their duties, the officers
and members of the executive board are
required to exercise: (1) If appointed
by the declarant, the care required of
fiduciaries of the unit owners; and (2)
If elected by the unit owners, ordinary
and reasonable care."
Whether one is bound by the standard
of a fiduciary or a standard of reasonable
and ordinary care, these are serious legal requirements that cannot be ignored
when taking on a role as a board member. Pursuant to 4.17 of the act, punitive
damages may be awarded for willful
failure to comply with the Act. Section
4.17 also provides for attorney fees.
The executive 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
Rhode Island Condominium Act,
associations have many powers and
responsibilities. The powers of an
association, which are subject to the
declaration, include, among other
things, the duty to enforce the payment of assessments, promulgation of
rules, overseeing the maintenance of
the common areas, and enforcement
of the rules and regulations.
Based on the foregoing, taking a
position on the board comes with a
lot of responsibility and a real obligation to the members to fulfill these
responsibilities. There have been situations where insurance policies have
lapsed 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.
Taking a seat on the board is a serious commitment, even when there is
a property manager involved. While
things can be delegated to a property
manager, even the most competent
property manager cannot make up for
a lack of a functioning board. Property
managers are not magicians, and they
need to be able to communicate with an
informed and participatory board to do
their job to their best of their ability.
An absentee board can cripple an
association and expose the association,
board members, and even a property manager to liability for the consequences of their inaction. Although
volunteering for a board is a lot of work,
when board members are informed and
organized, things can run smoothly and
successfully, especially when there is a
property manager involved. The result
of an organized and well-functioning association will most often be an increase
of participation from the members.

Board members, unit owners, and
property managers experiencing a
dysfunctional association should seek
legal counsel from an attorney well
experienced in condominium association law on advice on how to get things
working properly.
In addition, CAI is a great resource
for board members and all unit owners
for information on how to properly
operate the condominium association.
All unit owners have a vested interest in the successful operation of their
community, which ultimately protects
their property investment. When agreeing to serve as a board member, one
must be tuned in to their legal obligations to the association and the detrimental consequences that can arise as a
result of their tuning out.
■ MARY-JOY HOWES, ESQ., IS
AN ASSOCIATE WITH GOODMAN,
SHAPIRO & LOMBARDI, LLC.

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March 2015

Condo Media - March 2015

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