TAKEAWAY Here, the court recognized that individual board members should not be subjected to litigation simply for serving on a board. To hold board members personally liable, plaintiffs must allege with specificity that they committed wrongful, fraudulent, or tortious acts beyond their role as board members. The Business Judgment Rule protects board members from liability when they exercise business judgment within their authority. This protection can warrant dismissal of lawsuits at the pleading stage, even when all allegations in the complaint are accepted as true for purposes of the motion. Being named as a defendant in a lawsuit imposes significant burdens on individual board members. Underlying decisions such as this is the (often unstated) recognition that absent such judicial protections……no one will want or desire to serve on a cooperative or condominium board.
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