Robinson Ex Rel. Estate of Robinson v. LaCasa Grande Condominium Ass'n
150 Ill. Dec. 148, 204 Ill. App. 3d 853, 562 N.E.2d 678 (1990)
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Rule of Law:
Individual members of a condominium association's board of managers cannot be held liable in tort for negligent performance of their fiduciary duties because, under Illinois law, a breach of fiduciary duty is not a tort but is governed by the substantive laws of agency, contract, and equity. Furthermore, the liability shield of the Not For Profit Corporation Act does not apply if the condominium association was not organized under that Act and its common areas are not open to the general public, precluding federal tax-exempt status.
Facts:
- Kristi Robinson, a 10-year-old girl, lived with her family at LaCasa Grande Condominiums in Springfield, Illinois, where her parents owned a unit.
- On March 27, 1987, Kristi Robinson drowned in a swimming pool at LaCasa Grande Condominiums.
- Sidney Feller, Steven Orr, Rex Livingston, Gene Ferguson, Charles Schmitt, Janice Wolgamot, and Angela Williams were members of the board of managers of LaCasa Grande Condominium Association at the time of the incident.
- These individual managers were responsible for the management and maintenance of the common elements, including the swimming pool, at LaCasa Grande.
- The LaCasa Grande Condominium Association was organized under the Condominium Act, not the Not For Profit Corporation Act.
- The common areas of LaCasa Grande Condominiums, including the swimming pool, were not open to the general public.
- The individual members of the board of managers served without compensation.
Procedural Posture:
- John Robinson, as administrator of Kristi Robinson’s estate, filed a wrongful death action in the Sangamon County circuit court (trial court) against several defendants, including the individual managers of LaCasa Grande Condominium Association (Count III).
- The individual defendants-appellees (managers) filed a motion to dismiss Count III of the complaint pursuant to section 2-619 of the Code of Civil Procedure.
- The circuit court granted the individual defendants' section 2-619 motion, dismissing Count III of the complaint with prejudice.
- The circuit court found no just reason to delay enforcement of the dismissal order, allowing John Robinson, as plaintiff-appellant, to file this appeal to the Illinois Appellate Court.
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Issue:
Does Illinois law permit individual members of a condominium association's board of managers to be held liable in tort for negligent performance of their fiduciary duties?
Opinions:
Majority - Presiding Justice Knecht
No, Illinois law does not permit individual members of a condominium association's board of managers to be held liable in tort for negligent performance of their fiduciary duties. The court first addressed whether the Not For Profit Corporation Act (NFPC Act) exempted the individual board members from liability. It concluded the NFPC Act was inapplicable because LaCasa Grande Condominium Association was organized under the Condominium Act, not the NFPC Act, and did not qualify for federal tax-exempt status as its common areas were not open to the general public. Next, the court considered whether the individual board members could be held liable for negligent performance of their duties as fiduciaries. It acknowledged that the Condominium Act makes board members fiduciaries of the unit owners. However, citing Kinzer v. City of Chicago, the court reiterated that under Illinois law, a breach of fiduciary duty is not a tort but is controlled by the substantive laws of agency, contract, and equity. Therefore, the individual members of the board of managers cannot be held liable in tort for breaches of their fiduciary duties to the unit owners, even if those breaches involve negligence.
Concurring - Justice Spitz
Justice Spitz concurred with the majority opinion.
Concurring - Justice McCullough
Justice McCullough concurred with the majority opinion.
Analysis:
This case significantly clarifies the scope of liability for individual condominium board members in Illinois, insulating them from tort claims based on negligent breaches of fiduciary duty. It reinforces the Illinois Supreme Court's stance that breach of fiduciary duty is distinct from tort law, channeling such claims toward remedies in agency, contract, or equity. The decision also provides a critical interpretation of the Not For Profit Corporation Act's liability protections, establishing that they do not automatically extend to condominium associations that fail to meet specific organizational and tax-exempt requirements, particularly the need for common areas to be open to the general public.
