Lamden v. La Jolla Shores Clubdominium Homeowners Association

Gertrude Lamden (plaintiff) owned a unit in a development whose governing Declaration gave the homeowners association's Board of Governors (defendant) broad authority over maintaining common areas. Facing a recurring termite problem, the Board investigated its options, obtained a fumigation bid, but ultimately chose spot treatment instead of full fumigation after weighing fumigation's cost, the health and safety risks and disruption of relocating residents during fumigation, and the possibility termites would return even after fumigating. Lamden sued for breach of the Declaration, breach of fiduciary duty, negligence, and violation of a state statute requiring proper common-area maintenance; the trial court ruled for the defendants under the business judgment rule, but the court of appeal reversed, and the defendants sought further review.