Speeding Cars
Adams Stirling PLC
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SPEED BUMP DENIAL

QUESTION: Cars were speeding down our private street, which had young children who played on it. I suggested that speed bumps be installed to slow cars down. We have over 400 units in our complex with a huge monthly budget and the cost for the speed bumps was only $300. The board denied my request. One of the board members stated that "The board is insured for one million dollars so if anyone is injured or killed by a speeder and the board is sued for lack of action, they were covered. So why spend the money?" Is the board potential liable if someone is injured by a speeding car?

ANSWER: I would hate to defend that board member's statement to a jury. The attitude of "what do we care if someone gets killed, we have insurance" would likely result in punitive damages against the directors. Juries like to punish defendants who have a reckless disregard for public safety. Since punitive damages are not covered by insurance, your penny-pinching director could be paying out of his own pocket.

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Adams Stirling PLC