Affan v. Portofino Cove Homeowners Ass'n
Affan v. Portofino Cove Homeowners Ass'n, 189 Cal. App. 4th 930, 117 Cal. Rptr. 3d 481 (Ct. App. 2010)
The Lamden rule of judicial deference does not shield a board that fails to act on a known and recurring common-area defect. Where unit owners experienced repeated plumbing back-ups and sewage residue in their units over roughly a decade, and the board declined to conduct adequate investigation or take corrective action, the board could be liable for breach of fiduciary duty. Lamden protects discretionary choices between reasonable alternatives — not refusal to address a recurring system failure. The court emphasized Lamden is narrow and does not create blanket immunity for all HOA decisions.
Principal California Court of Appeal decision limiting Lamden. Cited whenever a board's inaction (rather than its choice between alternatives) is the basis of a fiduciary-duty or maintenance claim. Relevant to reserve-funding adequacy challenges where the board failed to fund reserves at all.