Federal Judge: Federal Rules Can’t Trump Master Deed’s Standing Provision

Mealey's (June 29, 2022, 7:36 AM EDT) -- CHARLESTON, S.C. — Federal rules governing derivative actions do not allow townhome owners to bypass a provision in their master deed that prohibits them from filing suit against the developer without authorization of 67% of the total owners, a South Carolina federal judge ruled June 13 in denying the owners’ motion to reconsider dismissal of their action against the developer for damage allegedly caused by excess humidity and moisture....