There are ample opportunities to observe the value of teamwork—working with community associations presents one such opportunity. You likely have experienced the benefits of working with a team of dedicated board members, attorneys and vendors, and likely have struggled through tough situations when you did not have a strong team in place. In addition to the natural benefits of collaboration, using experts as part of your team can also provide legal protection for your association’s directors.

Both Oregon and Washington have laws governing the standard of care for directors of a corporation which apply equally to directors of incorporated community associations. Both states use a “business judgment rule” which requires that directors: 1) act in good faith; 2) use the care that an ordinarily prudent person in a like position would exercise under similar circumstances; and 3) act in a manner the director reasonably believes to be in the best interest of the corporation. RCW 24.03.127; ORS 65.357

Both state laws also permit directors to rely on the expertise of their team of professionals in exercising their business judgment. The statutes allow directors to rely on legal counsel, public accountants or others with expertise on the matters being considered. A director is not liable if the director relies on professionals in exercising their director duties. This is strong protection for directors, and all directors should be advised to assemble teams of qualified professionals to assist them in using sound business judgment for the benefit of their associations.

The value of a strong team exceeds merely achieving good results; it may also provide added legal protection, as is the case with community association boards in Oregon and Washington. Are you doing all you can to promote exceptional teamwork for your association clients?