What happens if a condo board member violates their fiduciary duty?

If a condominium (Condo) board member violates their fiduciary duty, they can be held responsible to the homeowners as well as the Homeowners’ Association (HOA). In Oregon, fiduciary duties of condo board members are governed by state statutes and common law, which are enforced by the courts. Fiduciary duties are duties of loyalty, care, good faith, and honesty that the board member owes to the association and its members. For example, a board member must act in the best interest of the HOA rather than his or her own personal interest. Under Oregon law, breaching fiduciary duties can be considered a breach of contract and/or a tort. If it is determined that a board member has violated their fiduciary duty, the HOA may be able to recover damages from the board member. Depending on the severity of the breach, the board member may be required to cover all or part of the losses suffered by the association, including legal or accounting fees, or any other financial losses. Additionally, if a board member breaches their fiduciary duty, they may be removed from the board or held liable for negligence. This means that they may be subject to both civil and criminal penalties, such as fines or imprisonment. In Oregon, any homeowner who feels that a board member has violated their fiduciary duty can file a complaint with the Oregon Real Estate Agency’s HOA complaints program. This will initiate an investigation into the alleged violation of the board member’s fiduciary duty and, if necessary, the agency can issue sanctions or fines.

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What happens if a condo board member violates their fiduciary duty?

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