Plaintiff, Ms. Carmichael, is on the board of directors of Commerce Towers Condominium (“Association”). On the board with her is Mr. Frese and Mr. Vickers. Mr. Vickers, Mr. Frese and Mr. Tarantino are the officers of the Association. (collectively “Officers”). All three are also the officers of Tarantino Properties, Inc. (the “Management Company”). Carmichael and other unit owners (collectively “Owners”), individually and on behalf of the Association, sued the Officers and the Management company for breaches of fiduciary duties and for unjust enrichment because the Officers caused the Association to provide for the maintenance and preservation of property that was not part of the Association (the retail space of the buildings). The Officers and Management Company asserted that the Owners did not have standing to sue on behalf of the Association (a derivative suit).
Continue Reading Self-Dealing by Director is a Breach of Fiduciary Duty (Case 2)