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Condominiums and the Business Judgment Rule

Robert Mullin
Publication date:
December 11, 2018
Article Summary: 

Discusses a legal case (Patterson v. York Condominium Corporation No. 70) that highlights the independence and decision-making authority of condominium boards of directors. It emphasizes that as long as a board acts reasonably, in good faith, and exercises appropriate care, diligence, and skill, their decisions will not be questioned or overturned by the court. The post explains how the business judgment rule protects the decisions of corporations, including condominiums, from being second-guessed or scrutinized by the courts. It concludes by emphasizing that boards are elected to manage the affairs of condominiums and that the court will not substitute its judgment for that of the board without compelling evidence.


Condominiums, Business Judgment Rule, independence, Decision-making authority, Board of Directors, Good faith, Care, Diligence, Skill, Court intervention, Decision protection.

Source Citation: 
Robert Mullin
Condominiums and the Business Judgment Rule
December 11, 2018
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