June 25, 2014 South Carolina Court of Appeals published opinion

Fisher v Shipyard Village Council of Co-Owners, Inc.

Fisher and other condominium owners sued Council alleging negligence and other causes of action for damages to their units. The circuit court granted partial summary judgment to fisher ruling there was a duty to investigate and the business judgment rule did not apply and council breached its duty. The panel affirmed in part, reversed in part and remanded. It held that a duty to investigate was fairly found in the duty to repair damage and hold the responsible party accountable as investigation will often be needed to carry out the express duties in the Bylaws. The panel reversed as to the business judgment rule holding it applied to all acts authorized by the Bylaws though not to any ultra vires acts. The panel finally held there was scintilla of evidence that council adequately investigated damage claims and thus the question of breach must be tried to a jury.

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