Association’s Protected by the “Business Judgment Rule”

This case involved a dispute between a homeowner member of a property owners association (“Owner”) and the association (“Association”) over a decision by Association’s directors not to take legal action against another homeowner under the business judgment rule. The dispute was over alleged improvements that were constructed on the homeowner’s property without the required approval by Association’s Architectural Review Board. Once taken to court, the Association not taking action was protected by the business judgment rule.