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Member can’t bring breach of duty claim to recover personally

Member can’t bring breach of duty claim to recover personally

Member can’t bring breach of duty claim to recover personally

An appellate court in Pennsylvania has held that the state’s nonprofit corporation law does not permit a member of a nonprofit homeowners’ association to bring a breach of fiduciary duty claim against the association and a director to recover personal damages. The Court has ruled that the law permits a member to bring a case only as a derivative action in the name of the corporation. A husband and wife couple who were owner-members of the association sued the association and a director of the association appointed by the developer for breach of fiduciary duty in 2005. At the time the suit was brought, the developer had not held an election for members of the board. A trial court ordered an...

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