When one thinks of indemnification, the typical paradigm that comes to mind is a corporate officer is sued by a third party and he seeks to have all legal expenses paid by the corporation.  For example, a contractor involved in a construction project at a condominium property is owed money and sues the association and the board member with whom the contractor dealt, even though the board member never signed any contract. Under the corporate bylaws, the board member is typically entitled to full indemnification for successfully defending the case. But what about the situation when a board member files suit against the board or its other members regarding the board’s non-compliance with its fiduciary obligations, and then seeks to recover his own fees when he prevails? 

In a case of first impression, Hon. Michael J. Blee, P.J. Ch. of Superior Court, Atlantic County, Chancery Part, recently held on Oct. 6, 2021, in Patrick Boyle v. Carol Huff, that a person who successfully brings a claim as board trustee against a condominium association can recover his legal fees under the association’s bylaws for attorney fees he reasonably incurred in bringing the action. 

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