Legal Talk for Co-ops and Condos
Legal Talk for Co-ops and Condos
Legal Talk by Habitat Magazine
Board Members' Worst Nightmare: When Bad Faith Ruins Everything
17 minutes Posted Sep 8, 2025 at 5:00 pm.
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Send us a text The Business Judgement Rule protects a lot of board decisions, but when your actions are ruled “in bad faith,” everything changes. Steven Sladkus, partner at Schwartz Sladkus Reich Greenberg and Atlas, unpacks a shocking case where board members faced personal liability after a judge found they acted in bad faith. What started as a commercial unit alteration dispute spiraled into a nightmare scenario where the board became "defenseless" in court, despite following professional ...