Hold Building Officers And Directors Accountable For Fiduciary Breaches

Officers and directors of co-op and condominium corporations occupy positions of trust within the building. They owe fiduciary duties to the shareholders and unit owners—a legal obligation to act in good faith, exercise reasonable care in managing building assets and operations, and refrain from self-dealing or placing their personal interests above those of the residents. When officers or directors breach these duties through negligence, conflicts of interest, or outright misconduct, shareholders and unit owners suffer real financial and personal harm. An officer may divert building funds for personal use. A director may award building contracts to companies they own or control without competitive bidding. An officer may mismanage building operations, allowing maintenance to be neglected or assets to be squandered. A director may hide information or make decisions in secret that benefit themselves at the expense of residents. Sverd Law Firm has successfully pursued claims against unfaithful officers and directors who have violated their trust and fiduciary obligations.

Recognizing Fiduciary Breaches And Self-Dealing

Fiduciary breaches in residential buildings take many forms. Self-dealing occurs when an officer or director approves a contract with a company in which they have a financial interest, or hires a relative as a service provider at inflated rates. Conflicts of interest arise when officers or directors vote on matters that benefit themselves personally without disclosing their interest. Negligence occurs when officers mismanage building funds, fail to maintain the property properly, or waste shareholder and unit owner money on unnecessary expenditures. Misconduct may include taking bribes, embezzling building funds, or making decisions in closed session to benefit themselves while excluding residents from information. In each case, the breach violates the trust placed in these individuals and undermines the integrity of building governance.

We Hold Unfaithful Officers Accountable

Sverd Law Firm pursues claims against officers and directors who breach their fiduciary duties. We investigate misconduct, gather documentary evidence, and pursue recovery of misappropriated funds, disgorgement of improper profits, and injunctive relief to prevent further harm. We also pursue removal of officers and directors engaged in serious misconduct and seek damages on behalf of affected shareholders and unit owners.

Let Us Handle Your Case

Do not allow building officers and directors to breach their duties without consequence. If you suspect fiduciary misconduct by officers or directors, email us to schedule your initial consultation today.