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2014 PALM II Decision Has Changed the Ball Game for Conducting Business by Illinois Condominium Association Boards

Written by Kreisler-Law-PC on . Posted in condominium association, condominium attorney, condominium law, Illinois Condominium Property Act

The 2014 Appellate Court decision in the long running dispute  Of Gary Palm v 2800 Lake Shore Drive Condominium Association will have long lasting and deep effects on the conduct of the Board of Managers of Illinois condominium associations.  The decision will change the way most Boards conduct their business.  Until Palm, most condominium associations and condominium law attorneys believed that a Board could meet in “closed session” telephonic or in person meetings or e-mail exchanges to discuss association business, so long as no final decisions were made or votes taken.

 

The Palm decision has turned that belief on its head, by holding that any meeting of a quorum of board members to discuss association business, including by telephone or e-mail, had to be held as an open meeting of the board, with proper advance notice to unit owners.  The only exceptions to this rule were the three specific exceptions to the open meeting rule set forth in the Illinois Condominium Property Act, which are meetings:

  •  To discuss pending or threatened litigation involving the association;
  • To consider information regarding the hiring and firing of employees; or
  • To discuss rule violations or unpaid assessments.

 

Association Boards should be sure to consult their legal counsel regarding the rules of the post Palm II “brave new world” and to set up procedures to make sure that they do not run afoul of the law.  Feel free to contact an experienced Illinois condominium law attorney at Kreisler Law, if you have questions about the Palm II decision or any other area of condominium association law.

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