Opinion ID: 2593799
Heading Depth: 1
Heading Rank: 19

Heading: Relief Requested by Owners for Breach of Fiduciary Duties

Text: The Owners urge this court to declare that the Board is illegally composed. Owners assert that the entire condominium mechanism was set up by KBRS to create and maintain absolute control over the owners of the condominiums and their association in perpetuity. They assert that the record demonstrates that the Board consistently places the financial interests of KBRS above those of the Association. The Owners argue there is a fundamental and inherent conflict of interest between the KBRS Board and the Association Board and such a profound breach of fiduciary duties by KBRS and the Association requires the district court to dissolve the Association and its Board and order the creation of a new, independent condominium corporation and governing board. KBRS, unlike the usual developer who eventually turns over control of the homeowners association to the homeowners, has no intention of relinquishing control. It intends to continue control by maintaining a substantial ownership interest in the condominiums and discontinuing the sale of fee simple interests. However, as long as it continues to be a condominium development under the Kansas Act, it must comply with court orders regarding the composition of the Board and the voting rights of the owners. The district court ordered compliance, and this court affirms those orders as noted herein.