Lawsuit against developer

We are still in the Class B control period so the developer has veto powers over the BOD. The developer decided arbitrarily to stop making shortfall payments (as required by the Declaration) and is also paying nothing on any of his other lots so he quit contributing altogether in early 2007. We are only 38% built out. The BOD decided to sue and the developer, obviously, vetoed that suit against himself so, 34 of the 40 homeowners contributed to a lawsuit that has now gone on for over 2 years and cost the 2 sides over $100,000. We won, the court ordered the annual budget be divided by the total number of platted lots, the developer doesn't have to pay assessments during the remainder of the Class B period, but DOES have to make up the shortfall. (i.e annual budget divided by 104 units (lots), the 40 homeowners pay 1/104th annually and the developer makes up the shortfall) The developer's witness in court was the V.P. of our management company. Now that management company, at the developer's instruction, has refused to divide the budget according to the court order and has spent many thousands of our Capital Reserve to pay normal operating and maintenance bills so that the shortfall is less and the developer will not have so much to pay. The association is now broke, the 34 homeowners are worn out contributing to lawyers and to enforce anything requires lots more in attorneys fees. Our Declaration SPECIFICALLY states the management company is responsible to answer to the board but they deal only with the develper. Ever heard of a management company testifying against the homeowners trying to sue a crooked developer?? This is a prominent management company and no other associations have had any such problems. We believe there is an unknown relationship of some sort.. Anyhow, this is a gated community (we have to maintain the streets) with clubhouse, pool, aerated pond, many acres landscaped and we provide for all exterior maintenance. Lacking the developer paying either assessments or the shortfall our assessments will have to more than double. We won in court, we spent our time and money and the crook still wins. Gteat legal system, eh?

Actually, it was the Board who hired this management compnay after many recommendations. The developer had never previously used them but he gave his approval (as Class B member). Yeh, we have legal standing and legal grounds but no more $$$. Amazing, eh?