Facts

Richard Moyer, Robert Zerrenner, and Terry Poitevin were members of the Anaheim Ridge Estate Owners Association's (Anaheim Ridge Estate) board of directors. The Association was charged with the responsibility of maintaining the various slopes in the Anaheim Ridge development. Over the years, many of the owners, including Zerrenner's predecessor in title, were permitted to add additional landscaping to the slopes, allegedly increasing the Association's irrigation burden.

The Moyers wanted the slopes returned to the level of landscaping suggested in the 30-year-old covenants, conditions and restrictions. The Moyers additionally wanted the Association to employ a surveyor to identify the exact boundary lines of the slopes and employ various experts to locate and identify each and ever Association irrigation line. Poitevin and Zerrenner, after investigating the matter, determined that a survey was cost prohibitive and instead opted simply to locate and identify the main Association irrigation lines.

Moyer resigned from the board and sued Anaheim Ridge Estate, Zerrenner, and Poitevin for breach of fiduciary duty.

PLAINTIFF'S CONTENTIONS:
The Plaintiff contended ten homeowners, including the individual defendants, improperly used the association's irrigation system and that board members refused to address the problem.

DEFENDANTS' CONTENTIONS:
There was no Association water being used, except on slopes which the Association was obligated to maintain. Decisions concerning employment of a surveyor or locating all Association lines were matters of corporate governance. The decisions of Zerrenner and Poitevin were all within their discretionary authority as directors, made in good faith after reasonable investigation and in what they believed to be in the best interests to run for the Board of Directors who would exercise their discretionary powers in a different matter.

Result

Defense.