New York Law Journal
Protecting Board Members from Personal Liability
New York case law affords co-op and condominium board members, in their capacity as such, broad protection from personal liability, including the liberal application of the business judgment rule and stringent requirements for the imposition of tort liability. In addition, statutes can protect board members from liability. However, statutory protection is not automatic; it must be included as part of the co-op or condominium’s governing documents. Similarly, insurance coverage can offer protection, but it must be purchased and its terms complied with.
In their piece published by the New York Law Journal, Stroock partners Richard Siegler and Eva Talel discuss statutes, cases and insurance that protect board members from liability for their actions in the course of board service, update previous articles dealing with board liability and insurance and analyze recent legislation and case law. Their column also makes recommendations to boards and managers as to how to avail themselves of statutes and insurance that can protect board members.