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MystifieD (Texas)
Posts: 11
Posted:
Has anyone ever heard of THIS CRAZYNESS. Our Association has a member sueing the Association for "declaratory judgment" declaring the deed restrictions null and void for (alleged) irregularties in voting conducted to extend the CCR's in 2005.
The Board expended countless hours collecting documents, doing vote recounts, legal research, and selecting / hiring a lawyer.
The Board's selected counsel filed a Motion to abate (until Plaintiff serves each of the 340 odd property owners) as required under Texas Declaratory Judgment statute. It's the LAW.
Rumors got started somehow that the Board is causing EVERY property owner to get sued (since Plaintiff will be required to "serve" his petition on all property owners if the court grants the Motion to Abate). Rumor further has it that property owners could "lose" their property if this happens.
A petition was circulated, signed by numerous members, and delivered to the Board DEMANDING that we settle the lawsuit date certain, (without a hint as to acceptable conditions). The Board determined that the Plaintiff's demands cannot be legally granted by the board, but would in fact require affirmative vote of 100% of the property owners in all four units of the subdivision. Consequently we have not and cannot settle, and in fact further know that the suit is without sufficient merit to succeed. We feel we would be remiss in our duties if we did accept his proposed settlement even if we could.
The Board put up a web site (www.shspoa.com) in an effort to communicate accurate facts to all members.
A radical group attempted to call a special meeting and effect a coup, and attempted to establish itself as authoritive, and filed documents in the deed records, and met directly with the Plaintiff, and purportedly worked out a settlement (that would still be illegal if implemented). Our Board - since there is now TWO - obtained a Restraining Order restraining the rogue Officers from holding themsleves out as Officers or in a position of authority to the general public or assn. members.
NOW, THE LATEST, the members of the coup has circulated a petition and obtained the required 10 percent of membership signatures demanding a special meeting to "REMOVE THE BOARD OF DIRECTORS AND OFFICERS OF SCENIC HEIGHTS SUBDIVISION PROPERTY OWNERS ASSOCIATION and to ELECT NEW DIRECTORS AND OFFICERS."
Not supprisingly, the Special Meeting is set four days before the hearings on Injunction and Abatement issues.

Anybody have any real good ideas. Our group is very concerned their actions, if they haven't already, will damage the Association's legal position and chances, or an illinformed settlement will leave the CCR's unenforcible, and new ones could NEVER be passed.

You may respond here, or directly on SHSPOA's new discussion forum on their web site at www.shspoa.com.

Thanks, Mystified
RogerB (Colorado)
Posts: 5,067
Posted:
MystifieD, I presume you have good legal council who have been providing guidance. If you have any doubt about their competence you could get a second legal opinion.

I do wonder how the Board allowed to let this get so out of control. My main objective as a property manager is to provide guidance which prevents this from happening.
JulieS (Georgia)
Posts: 412
Posted:
I've been through a special meeting to overturn the board, etc., but not everything you have going on. We had an attorney and I highly suggest you do the same if you haven't already. There is nothing worse than a divided community and the rumor mill.
BrianB (California)
Posts: 2,820
Posted:
prepare the facts of the case, and your best thoughts on what will happen under the most likely outcomes.

in general, if you can remain calm, present the truth/facts, enough owners will be smart enough to know they want the informed, smart, legally represented board to handle the potential law suit, not the ranting/raving looney crowd.

Don't overlook personal communication either... pick a couple folks, assign a board member armed with all the facts, and have them go have coffee... answer questions, speak calmly, explain the rules and facts. one cup of coffee a day with a different person could stem the tide.

MystifieD (Texas)
Posts: 11
Posted:
We do have seasoned experiences counsel - experienced in property law and represents several HOA's. Regrettably the nasayers have even used this against us complaining about the $2000 retainer and demanding we settle the suit. (Of course it takes two to settle unless you fold and the party Plaintiff demands that we Drop 2 units out of the Deed restrictions, an act our counsel says we cannot legally do. I too am mystified how it got so out of control in the face of our best efforts to talk to influential members and the opposing party. We are lacking something in the communications area.
MystifieD (Texas)
Posts: 11
Posted:
Thanks for the input BrianB. Worst case outcome that I fear is the radical group get control at the special meeting, and without benefit of our year of research and hard work, they run execute some illconceived settlement that weakens or distroys the enforceability of all the deed restrictions as a whole.

Your last point is well taken. Not that we have not extended offers to various individuals to attend open session at our Board meetings (generally declined), but we have likely missed the baby step simple communications over coffee because of the bigger issues we've been dealing with. I will try harder for one on one (if I am still around after this special meeting.

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