Legal Question in Civil Litigation in Tennessee
Condominium Association Director's Liability
Just under $100,000 was embezzeled from our condo association by an employee. The employee was procecuted and found guilty.
However the association did not have adequate insurance and the books were not being audit by an independent CPA.
The directors claim they did not have adequte insurance or independent audits because they were trying to save money.
Are the directors being negeligent in their duties and would they not be liabile for the loss rather than the unit owners.
Asked on 10/31/05, 2:09 pm
1 Answer from Attorneys
Alan Crone
Crone & McEvoy, PLC
Re: Condominium Association Director's Liability
Yes, they certainly could be liable. It does not seem reasonable to avoid audits and insurance to "save money." Audits and fidelity bonds are very very important.
Answered on 10/31/05, 2:54 pm
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