Harvey v. The Landing Homeowners Assn

In Harvey v. The Landing Homeowners Assn. (2008) 162 Cal.App.4th 809, the court applied the business judgment rule to evaluate a homeowners association's decision to permit certain homeowners the right to use up to an amount of inaccessible attic space for storage. Outlining the evidence which showed that the board conducted an investigation regarding homeowners' use of the space, obtained input from current homeowners, ensured compliance with city building codes and consulted the development's insurance broker, the court determined that "the Board, 'upon reasonable investigation, in good faith and with regard for the best interests of the community association and its members,' properly exercised its discretion within the scope of the CC&R's when it determined the fourth floor homeowners could use exclusively up to 120 square feet of inaccessible attic space common area as rough storage." (Id. at p. 822.)