1	Community Association Leadership -- The Essentials Fairlington Mews Condominium Board of Directors Presented by Peter S. Philbin, Esq. Rory Nugent, Esq. Rees Broome P.C Counselors at Law Vienna Virginia
2	Basics Of Community Associations 1. Mandatory membership via Declaration 2. Power to regulate use 3. Power to assess 4. Duty to protect communal assets 5. Duty to provide services
3	The Two Different Standards Of Review of Board Actions Business judgment standard “Reasonableness” standard
4	Business Judgment Standard Exercise the care and skill of ordinary, prudent director? Was act/omission consistent with the authority in governing documents? If so, court will NOT substitute its judgment for the Boards even if the disputed act was, in hindsight, questionable (so called, “true heart, weak mind” theory)
5	Reasonableness Standard Authority for the act? Action related to association purpose? Action arbitrary or capricious? Adopted and implemented fairly?
6	The Fiduciary Duty Understand it - don’t fear it Directors/management owe this duty-owners do NOT Elements - Take no advantage Disclose interests Avoid conflicts of interest Elevate “association” interest over personal interest
7	Sources Of Authority Statutes- Condominium Act Nonstock Corporation Act (if incorporated) Governing documents Declaration/Master Deed Bylaws Rules/Policy resolutions Conflicts in documents?
8	Sources Of Protection Active discharge of duties Know the business of the Association Prepare and attend meetings Know the governing documents Supervise; don’t manage Statutory protection (Sec. 13.1-870.2) Liability is equal to your compensation unless gross or willful misconduct Insurance
9	Common Insurance Exclusions Defamation Discrimination Illegal acts
10	Leadership Skills Team approach Be a positive force Ask advice; give feedback; seek educational opportunities Accept criticism Communicate Work the issue, not the person
11	Enforcement Imposition of Charges Suspension of Privileges Legal Action/Lawsuit This presentation is for informational purposes only and should not be relied upon in lieu of direct legal advice; this is copyrighted and should not be reproduced or used without the permission of Rees, Broome, PC.