Hold Board Members Accountable For Breaching Their Fiduciary Duties

Board members in co-ops and condominiums occupy positions of trust. They owe fiduciary duties to the shareholders and unit owners they represent—a legal obligation to act in good faith, to avoid conflicts of interest, to exercise reasonable care in managing building funds and property, and to prioritize the interests of the residents over their own. When board members breach these duties through self-dealing, favoritism, negligence, or outright misconduct, shareholders and unit owners suffer real harm. A board member may approve a contract that benefits a company they own or control. A board member may vote to hire their relative as a service provider at inflated rates. A board member may neglect maintenance, allowing the building to deteriorate. These breaches undermine the integrity of building governance and violate the trust placed in these individuals. Sverd Law Firm has successfully pursued claims against board members who have breached their fiduciary duties.

Common Types Of Fiduciary Breaches

Board members breach their fiduciary duties in many ways. Self-dealing occurs when a board member votes on a matter that benefits them personally—approving a contract with their company, hiring their relative, or authorizing an expenditure that increases their own property value. Conflicts of interest arise when board members fail to disclose financial interests or vote despite having a personal stake in the outcome. Negligence occurs when board members fail to exercise reasonable care in overseeing building operations, budgets, or maintenance. Favoritism results when board members treat certain residents preferentially or discriminate against others in applying building rules. Waste occurs when board members approve unnecessary or extravagant expenditures of building funds.

We Pursue Your Claims Against Breaching Board Members

Sverd Law Firm investigates board member conduct, identifies breaches of fiduciary duty, and pursues claims to recover damages and hold board members accountable. We seek removal of board members who have engaged in serious misconduct and pursue injunctive relief to stop ongoing breaches.

Let Us Handle Your Case

If board members have breached their fiduciary duties and harmed your interests, email us to schedule your initial consultation today.