Trilogy at Glen Ivy Maintenance Association v. Shea Homes, Inc.
235 Cal.App.4th 361 (2015)
Facts: Association and homeowners brought action against the developer alleging that it improperly diverted revenues from a contract that should have been paid to Association. The developer responded by moving to dismiss the complaint via an anti-strategic lawsuit against public participation (Anti-SLAPP) motion. The Superior Court denied the developer’s Anti-SLAPP motion and the Developer appealed.
Applicable Law: Code of Civil Procedure § 425.16 (Anti-SLAPP statute); Board fiduciary duties.
Result: Developer’s Anti-SLAPP motion deemed not applicable to breach of fiduciary duty cause of action because Developer had not satisfied its initial burden of showing that plaintiffs’ claims arose from protected activity.
Rule: A Developer-controlled Board of Directors owes fiduciary duties to the Association.