Pederzani v. Guerriere

Civil Action No. 930502A, 1995 WL 1146832 (1995)

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Pederzani v. Guerriere

Massachusetts Superior Court
Civil Action No. 930502A, 1995 WL 1146832 (1995)

MP

Facts

Pederzani and other elected unit-owner trustees of a residential condominium (the unit-owner trustees) (plaintiffs) filed suit against Guerriere, Buscone, and Pyne (the developer trustees) (defendants), former trustees appointed by the developer, for breach of their fiduciary duty regarding their alleged failure to correct substantial deficiencies in the condominium’s retaining walls and sewage facility and for their failure to collect condominium charges from the developer. The developer trustees moved for summary judgment, citing their immunity from suit under the condominium’s declaration and the business-judgment rule. The unit-owner trustees opposed the motion and submitted evidence to support their claims. Under the condominium’s declaration, trustees were not liable to unit owners for their judgment mistakes or negligence unless they had acted individually with willful misconduct or bad faith. Under the business-judgment rule, condominium trustees were not liable to unit owners for their actions that were exercised in honest judgment and good faith and in furtherance of the unit owners’ interest.

Rule of Law

Issue

Holding and Reasoning (Hely, J.)

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