CALIFORNIA – Associations – Board Misconduct

latimes.com: ASSOCIATIONS
Any recourse when evidence of board misconduct surfaces years later?
By Donie Vanitzian
January 5, 2014
Question: I was on the board of directors when our homeowners association got sued. Some directors were sued individually for breach of their respective fiduciary duties. I wasn’t sued, and after a short hiatus from the board, I was reelected.

When the lawsuit occurred I wasn’t privy to meetings between the board president and the insurance company attorneys representing the association. Years later, I learned of information the attorneys gave to the other directors during the lawsuit. Those attorneys told certain board directors to get rid of their hard drives and ensure “everyone knows that you have hard-drive failure.”

During the suit, subpoenas were issued for computer-related items such as emails and hard drives. At the time, the president, who was also the main liaison between the attorneys and the other directors, made repeated comments that he suddenly had hard-drive failure. On advice from those attorneys, he conveniently intercepted all files from the management company, which he then took to his home and “purged.” Directors were advised “what you don’t have, you don’t have to produce.”

In preparation for depositions those same directors began creating documents and rewriting existing documents to cover up their actions while on the board. All this and more was prompted by attorneys hired by the insurance company. Because this and other information remains secret, these contemptible ex-directors remain idolized in our community. What can be done about this?  Read more:

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