Recent developments in Illinois law pertaining to the defense of officers and directors of Condominium or Homeowner Associations (HOA) revolve around issues of insurance coverage, duties under the Illinois Condominium Property Act, and the right of unit owners to bring lawsuits.

In the case of “State Auto Property & Casualty Insurance Co. v. Bell & Arthur Condominium Association”, it was held that the insurer did not have a duty under Illinois law to defend the association, directors, and officers in an action regarding alleged defamation per se and property damage, as these alleged offenses occurred outside the policy period.

Regarding the duties of condominium associations, the “Westfield Insurance Company v. National Decorating Service, Inc.” case noted that under the Illinois Condominium Property Act, a condominium association may act in a representative capacity on behalf of its unit owners. However, the Act limits such representation to matters involving the common elements or more than one unit. This limitation precludes the Association from pursuing a legal remedy for damage caused to the individual unit owners’ furniture. Thus, these allegations were insufficient to invoke the insurer’s duty to defend.

The case of “Palm v. 2800 Lake Shore Drive Condominium Ass’n” highlighted that the Condominium Property Act regulates the creation and operation of Illinois condominium associations. The Act also defines “meeting of board of managers” and provides certain requirements for an association’s bylaws.

In “Truck Ins. Exchange v. Cassady”, the Condo Association sued the Developer and the officers for alleged construction defects. The court also discussed the insurance policy period about the claims.

The “Davis v. Dyson” case confirmed that unit owners in a condominium association could bring a derivative breach of fiduciary duty action against former directors. In contrast, the “Poulet” case found that causes of action for conversion and common law constructive fraud relating to an association’s account belong exclusively to that association, leaving unit owners with limited legal recourse.

In sum, the recent developments in Illinois law highlight the importance of insurance coverage periods in determining the duty to defend, restrictions on the representative capacities of condominium associations, the right of unit owners to bring lawsuits, and compliance with regulations under the Illinois Condominium Property Act.

HPA and Condo Board Officers and Directors Contact us for a Free Consultation: Defending condominium and HOA board officers and directors facing lawsuits under Illinois law is a complex task that requires experience. The HOA and condo officer and director defense lawyers at Lubin Austermuehle are committed to providing the necessary support and legal counsel to navigate these challenges. Our aim is to protect the interests of community leaders, maintain the harmony of your association, and facilitate efficient dispute resolution. Contact us today to discover how we can be your trusted legal ally in the realm of Illinois condo and HOA governance.

Here’s how you can take the first step as an officer or director who has been sued or is facing a potential suit:

  1. Call Us: Reach out to Lubin Austermuehle today at (630) 333-0333. Our skilled HOA and Condo Board officer and director defense attorneys are ready to listen to your concerns, evaluate the details of your case, and provide you with a confidential consultation to discuss your legal options.
  2. Email Us: If you prefer written communication, you can email us at to share the specifics of your situation. Our dedicated team will respond promptly and schedule a consultation to understand your needs.
  3. Visit Our Website: For more information about our practice areas, team, and past successes, visit our website at Explore valuable resources and insights into our expertise in libel defense.

Don’t hesitate to contact us if you are facing a lawsuit.

Lubin Austermuehle is here to provide you with the legal guidance and representation you need to navigate and defend your decisions successfully.

Contact us today at 630-333-0333 or online, and let’s work together to protect you. You deserve nothing less than the best defense, and Lubin Austermuehle is here to deliver it.

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