1. Could You Be Sued as a Co-op Board Member?

    Could You Be Sued as a Co-op Board Member?

    Let's say you volunteer to serve on the board of your New York co-op apartment, and conflicts arise. Legal threats follow. Just how much personal risk have you taken on? While most boards carry liability insurance for the directors and officers, would it protect you in the event of legal action? Or could you ...

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    1. We'll sue the individuals, they will panic, and we will have them in our grasp! But that's not what happens.
    2. In New York City, you have a lot of money, so it's more intense. Lawsuits are usually filed by the people who live there who don't want to follow the rules.
    3. As long as you are acting in the best interest of the corporation, you won't be held liable.
    4. The risks of legal liability are not high unless you engage in some sort of nefarious conduct.
    5. Directors need to know they are handling a multimillion dollar corporation, and if you don't enforce the documents uniformly, you can be sued. You have to treat everyone the same.
    6. I do run across buildings that don't have coverage.
    7. In more than 30 years of doing this, that is the only case I know where there was any personal liability against individual board members.
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