Palm Springs Villas II HOA v. Parth
Annotate this CaseThe Palm Springs Villas II Homeowners Association, Inc. (Association) appealed a judgment entered in favor of Erna Parth, in connection with actions she took while simultaneously serving as president of the Association and on its Board of Directors (Board). The court granted Parth's motion for summary judgment as to the Association's claim for breach of fiduciary duty on the basis of the business judgment rule and an exculpatory provision contained in the Association's Declaration of Covenants, Conditions, and Restrictions (CC&Rs). The court had previously sustained Parth's demurrer to the Association's claim for breach of governing documents without leave to amend, finding that the Association failed to allege a cognizable breach. On appeal, the Association argued that the trial court erred in its application of the business judgment rule and that there remained material issues of fact in dispute regarding whether Parth exercised reasonable diligence. After review of the matter, the Court of Appeal agreed that the record contained triable issues of fact that should not have been resolved on summary judgment. Therefore the Court reversed the judgment in favor of Parth. The Court affirmed in all other respects.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.