The general rule of thumb is that a director has a duty to “treat members fairly” and act “reasonably” when exercising his or her discretionary powers. Those discretionary powers include rule-making, enforcement and design-control powers. These duties were recently upheld by the court in Kitchukov v. Tierra Ranchos.
But what does this all mean? Here are a few examples:
1. Homeowner John and Harry both park RVs on the side of their lots in violation of the CC&Rs. Harry is a nice guy that everyone in the community loves. John regularly criticizes the board at meetings and is rather confrontational. The board […]