In response to our recent post on the case of Boily v. Carleton Condominium Corp. No. 145, where board directors were held by a court to be personally responsible for legal costs incurred by a group of owners, one of our readers asked if this would be covered by directors’ liability insurance.

Section 39 of the Condominium Act provides that if insurance is reasonably available, the corporation shall purchase insurance for the benefit of a director or officer, except where the director or officer has breached the duty to act honestly and in good faith. In this case, a court of law determined that the directors had acted in bad faith, so there would likely be no insurance proceeds to cover those costs.