<section number="57-8-10.7"><effdate>5/8/2018</effdate><histories><history>Enacted by Chapter <modchap sess="2018GS">395</modchap>, 2018 General Session</history><modyear>2018</modyear></histories><catchline>Board action to enforce governing documents -- Parameters.</catchline><subsection number="57-8-10.7(1)"><subsection number="57-8-10.7(1)(a)">
The management committee shall use the management committee's reasonable judgment to determine whether to exercise the association of unit owners' powers to impose sanctions or pursue legal action for a violation of the governing documents, including:<subsection number="57-8-10.7(1)(a)(i)">
whether to compromise a claim made by or against the management committee or the association of unit owners; and</subsection><subsection number="57-8-10.7(1)(a)(ii)">
whether to pursue a claim for an unpaid assessment.</subsection></subsection><subsection number="57-8-10.7(1)(b)">
The association of unit owners may not be required to take enforcement action if the management committee determines, after fair review and acting in good faith and without conflict of interest, that under the particular circumstances:<subsection number="57-8-10.7(1)(b)(i)">
the association of unit owners' legal position does not justify taking any or further enforcement action;</subsection><subsection number="57-8-10.7(1)(b)(ii)">
the covenant, restriction, or rule in the governing documents is likely to be construed as inconsistent with current law;</subsection><subsection number="57-8-10.7(1)(b)(iii)"><subsection number="57-8-10.7(1)(b)(iii)(A)">
a technical violation has or may have occurred; and</subsection><subsection number="57-8-10.7(1)(b)(iii)(B)">
the violation is not material as to a reasonable person or does not justify expending the association of unit owners' resources; or</subsection></subsection><subsection number="57-8-10.7(1)(b)(iv)">
it is not in the association of unit owners' best interests to pursue an enforcement action, based upon hardship, expense, or other reasonable criteria.</subsection></subsection></subsection><subsection number="57-8-10.7(2)">
Subject to Subsection <xref depth="4" refnumber="57-8-10.7(3)" start="0">(3)</xref>, if the management committee decides under Subsection <xref depth="4" refnumber="57-8-10.7(1)(b)" start="0">(1)(b)</xref> to forego enforcement, the association of unit owners is not prevented from later taking enforcement action.</subsection><subsection number="57-8-10.7(3)">
The management committee may not be arbitrary, capricious, or act against public policy in taking or not taking enforcement action.</subsection><subsection number="57-8-10.7(4)">
This section does not govern whether the association of unit owners' action in enforcing a provision of the governing documents constitutes a waiver or modification of that provision.</subsection></section>