Part 42 published on 01/05/13
Director not personally liable because he acting honestly and in good faith
The Syndicate is comprised of four units. At all material times, Roy and Penicaud were the only two members of the Board. Roy commenced an action against Penicaud, personally, for damages related to loss of enjoyment of the unit, health problems, stress and inconvenience, allegedly resulting from a structural problem that allowed transfer of smoke from drugs into her unit. Roy originally claimed the amount of $26,861.00, but reduced her claim to $7,000.00 to bring it within the jurisdiction of the Small Claims Court.
The claim was dismissed. Roy admitted that Penicaud had, at all material times, acted honestly and in good faith. The Syndicate’s declaration contained an indemnification provision which prevented Roy from successfully pursuing Penicaud unless he had acted fraudulently or maliciously.