Two Directors of a resident management company were sued for libel by a former Director. Following failure of disclosure of conflicts of interest a Director was removed from the board. Despite the former Director dropping his libel case after a mediation hearing, over £35,000 of legal costs were incurred under the D&O policy.

A squirrel entered the roof space of a block of flats and damaged the wiring. It gained access from nearby trees. An action was bought against the Directors alleging that they had not maintained the trees properly as if they had the squirrel wouldn’t have been there in the first place! Whilst the Directors successfully defended the case – legal costs were paid under the D&O policy of over £4,000.

A resident sued the Directors for devaluation of their flat following failure of the Directors to identify and rectify external dilapidation. Legal costs in this instance exceeded £13,000.

A resident in an apartment block campaigned for the removal of the board and election of a new board. The chairman of the board wrote to his fellow residents to point out errors in allegations made against him. It happened that the resident making the allegations was a barrister who viewed the response as libellous! Although the barrister never followed up her allegations at the court hearing, the D&O policy funded not only the legal advice, but the legal representation costs as well, amounting to over £20,000,

Directors of a resident management company were fined by Companies House after failing to file the annual company accounts on time. The D&O policy funded their legal costs in defending the action.

A resident sued the Directors and chairman of a management company when selling their flat for the diminution in the value of the property. It was alleged the management failed their duty of care in managing an unruly tenant in an adjacent flat. Legal costs exceeded £10,000.

The Secretary of a small block of flats was asked to obtain alternative Building Insurance quotations. The contract selected (in line with the majority of policies) contained a 'small print' restriction in respect of unoccupied/unfurnished flats. A pipe subsequently burst in an unoccupied flat causing considerable damage to the property below. The Secretary was held personally responsible for failing to obtain the best available cover.

Members of a management committee were held individually liable for failure to appoint a responsible builder to re-roof a block of flats. The work was not of a reasonable standard and the company who completed the job later went into administration. The costs associated with re-roofing the property were held accountable against the Directors for failing to appoint competent contractors.