Reiner v. Ehrlich
Maryland Court of Special Appeals
66 A.3d 1132 (2013)
A homeowners' association had discretionary power under a subdivision's restrictive covenants to grant or deny requests for variances from those covenants. Randall and Orna Reiner (plaintiffs) asked for a variance to install asphalt roofing, which the association denied. The Reiners sued the association and Clifford Ehrlich and other individual board members (defendants), seeking a declaratory judgment and relief from the subdivision's architectural restrictions entirely. The trial court dismissed the individual defendants and granted summary judgment for the association, and the Reiners appealed.
Whether the business-judgment rule precludes judicial review of an organization's legitimate business decision.