Homeowners Must Show Damages to Claim Breach of Fiduciary Duty by Association
In Martin v. Estates of Russell Creek Homeowners Ass’n, Inc., 251 S.W.3d 899 (Tex. Ct. App. 2008), the Texas Court of Appeals sided with the association when homeowners brought, among others, a breach of fiduciary duty claim.
Homeowners sued homeowners’ association for breach of fiduciary duty, unfair and deceptive trade practices, and fraud. The owners claimed that the association negotiated about a cellular phone tower without notifying or consulting the owners and that the association did not use the money from the cell phone company as directed. After a summary judgment for the association, the homeowners appealed.
The court of appeals first stated that the lower court did not err when it sustained the association’s objection to owners’ expert testimony. The owners designated their expert way past the deadline to do so.
In addition, the court noted that the owners failed to present any evidence as to their damages, which is necessary to sustain plaintiffs’ claims. Therefore, the court found that even based on plaintiffs’ version of the facts, the law mandates a judgment for defendants. The summary judgment was proper.
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Posted by Ryan McCabe at 2/2/2009 10:46 PM 
Categories: Damages, Fiduciary Duty, Homeowners Association, Property Owners Association, Condominium Association, Board of Directors
Categories: Damages, Fiduciary Duty, Homeowners Association, Property Owners Association, Condominium Association, Board of Directors
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