Board Meetings and Alcohol don't Mix

Don't serve alcohol at your board meetings - even it's just a glass or two of your favorite adult beverage, the presence of these libations can bring calamity down upon any decision made by the Board if it's discovered that members were consuming while resolving Association business.

Community Boards have been known to ratchet up the incentive to attend the periodic meetings by instilling a more social feel to the event, including relocating to a Board member's unit and serving beer and wine or other spirits. While one glass of wine might sound harmless, it could potentially sound the alarm if there's ever a lawsuit about decisions reached by the Board at the meeting, especially where that lawsuit pertains to fiduciary duty owed by the Board to the community.

The court will normally grant deference to the decisions of the Board in a lawsuit against it by utilizing the "business judgment rule" -- this rule says that as long as the Board's decision was governed by the dedicatory instruments of the Association and wasn't made for an improper reason (ie. personal financial gain) then the court won't second-guess it. However, if it's discovered that alcohol was served at any time during the decision-making process, the court could rule that the member(s) may have impaired their judgment. The result: the court opens a Pandora's box that could potentially undermine every decision that the Board has made and invite further scrutiny and challenge to all Board actions past, present and future.

So next time your Board gathers for its business meeting, think twice before popping the cork or un-twisting the cap, for the live you save may be your Board's...