Are owners' baked goods a liability concern?

Q: From time to time, owners in our building bake things like bread, cookies and cakes, and leave them on a table in our lobby for other residents to enjoy. The board is concerned about liability exposure for the association if we allow this. Should the board be concerned?

A: Many associations have events where residents provide homemade baked foods. However, I am assuming the situation you describe involves food left "anonymously" and/or "unsupervised."

The association has exposure to liability for personal injury in this scenario (e.g., tampering by third parties, accidental food poisoning) if such injury is due to the association's negligence. Allowing residents to leave food anonymously and unsupervised could be considered negligent. I don't suggest this.

The board might want to consider having some sort of social event among the residents where residents can share their homemade foods together with other residents.

Q: I am on the board of a condominium association. We have unsuccessfully tried to amend the declaration to limit the number of units that can be leased. The board has been discussing a concept of requiring owners to own a unit for a year before being able to lease that unit. Is this valid?

A: For various reasons, owners may be reluctant to approve an amendment that limits the number of units that can be leased. However, those same owners may accept a restriction that requires an owner to own a unit for some specified period of time before being able to lease that unit.

Some associations require the owner to both own and occupy the unit for some period of time before it can be leased. The purpose of the provision is to deter the purchase of units for the sole purpose of leasing. Such an amendment should withstand judicial scrutiny.

Q: Does the Condominium Property Act describe what insurance unit owners are required to acquire?

A: Insurance is governed by Section 12 of the Illinois Condominium Property Act. The Act focuses on the types of insurance to be maintained by the association. The insurance required to be maintained by a condominium association includes property insurance, general liability insurance, a fidelity bond and directors' and officers' coverage.

The declaration may also require the association to carry any other insurance, including workers' compensation, employment practices, environmental hazards and equipment breakdown, that the board of directors considers appropriate to protect the association, the unit owners, and officers, directors or agents of the association.

However, the Act does not mandate insurance to be carried by owners. That said, Section 12(h) of the Act provides that the board of directors may, under the declaration and bylaws or by rule, require unit owners to obtain insurance covering their personal liability and compensatory (but not consequential) damages to another unit caused by the negligence of the owner or his or her guests, residents and invitees, or regardless of any negligence originating from the unit.

The personal liability of a unit owner or association member must cover the deductible of the owner whose unit was damaged, any damage not covered by insurance required by this provision, as well as the decorating, painting, repair or replacement of wall and floor coverings, trim, appliances, equipment and other furnishings.

If an association is going to require this insurance, it should seek input from its insurance adviser as to the minimum amounts of such insurance that owners are to procure.

Nonetheless, owners should speak with their own insurance adviser as to the types and amounts of insurance he or she should carry.

Note that the Common Interest Community Association Act does not include any requirements regarding the insurance to be maintained by the association or owners.

• David M. Bendoff is an attorney with Kovitz Shifrin Nesbit in the Chicago suburbs. Send questions for the column to him at CondoTalk@ksnlaw.com. The firm provides legal service to condominium, townhouse, homeowner associations and housing cooperatives. This column is not a substitute for consultation with legal counsel.