The Law Spot -Does your contract provide for indemnification?

CAM Newsletter
June 2018


Does your contract provide for indemnification?

 

Professional practice standards for community association standards are found in section 468.4334 of the Florida Statutes.  Key to the statute is that a community association manager or a community association management firm is deemed to act as agent on behalf of a community association as principal.  The authority of the agent is determined by a written contract or other laws granting authority.

A community association manager and a community association management firm are required to discharge duties performed on behalf of the association “loyally, skillfully, and diligently; dealing honestly and fairly; in good faith; with care and full disclosure to the community association; accounting for all funds; and not charging unreasonable or excessive fees.”   Acting on behalf of another can lead to liability for doing something that hurts another, but the statute provides a way to protect you.

Under the statute does, community association managers and firms may be indemnified by the community association for ordinary negligence resulting from acts or omissions that are the result of an instruction or direction of the community association.  The indemnification, if any, must be contained the contract between a community association and a community association manager or firm.  The indemnification may not cover an act or omission that violates a criminal law, derives an improper personal benefit, either directly or indirectly is grossly negligent or is reckless, is in bad faith, is with malicious purpose, or is in a manner exhibiting wanton and willful disregard of human rights, safety, or property.

Click here to read Florida Statute 468.4334

About Fred Gray

Fred Gray is the owner and President of Gray Systems, Inc and is a licensed general contractor in the state of Florida. Fred has been part of the Community Association Manager Continuing Education industry in Florida since 1988.
Category: CAM Newsletters, News & Events, Newsletters Tags: , , , , No Comments

The Law Spot-Existing High-rise condominium buildings

The Law Spot Section 718.112(2)(L) of the Florida Statues was changed in the 2019 legislative session by HB 7103.  T... Read More »

The Law Spot -Swimming in licensing options

Contractor Newsletter June 2018 Edition   Swimming in licensing options   Rule 61G4-15.040 of the Florid... Read More »

The Law Spot-Is your association using Internet-based voting?

CAM Newsletter May 2018   Is your association using Internet-based voting? A woman in line at a grocery store... Read More »

Comments are closed.