Thursday, 28 March 2024

Watkins: Lawsuit filed against community association

The lawsuit finally happened, Oct. 20, 2008. It was filed against the Clear Lake Riviera Community Association, former President Alan Siegel, former first Vice President Sid Donnell, former Board Member Sandra Orchid, Board Member Boone Bridges and Does 1 to 100. The plaintiffs, WE THE PEOPLE and John Stoddard. Special and general damages are asked; case CV407381.


Incredibly, the lawsuit says, defendants violated covenants, conditions and restrictions (CC&Rs) of their own association, specifically Article XII, the enforcement clause. Defendants violated this clause by arbitrarily fining incompliant homeowners instead of following the judicial process described therein.


By fining, the board was also amending the CC&Rs without the approval of the owners, a violation of Article I which declares only a majority of the owners may make changes to the governing documents. A vote of 50 percent plus one is needed to implement changes.


The defendants not only adopted fining without the approval of the owners but they fined outrageous and illegal amounts when they fined. One owner was fined more than $20,000 for not cutting brush properly, according to the lawsuit. This violates California Civil Code section 1366.1 which states, “An association shall not impose or collect an assessment or fee that exceeds the amount necessary to defray the costs for which it is levied.”


The lawsuit also says the association is breaking election laws, paragraph 18, “… On information and belief, the board did not conduct the election in compliance with California Civil Code section 1363.03 which governs elections to the boards of directors of common interest developments and associations. On information and belief, board member-candidates improperly took part in the preparation of the ballots for the September 2008 election. Instead of an impartial process overseen by neutral third parties as required by statute, one of the candidates of the September 2008 elections wrote the explanation letter the board sent to the owners with the ballots and another candidate designed the ballot. Board members and their employees, who had an interest in the outcome of the election, not only had possession of blank ballots and ballot envelopes until the voted ballots were counted, they also had possession of the voted ballots until the morning they were counted, instead of being held by a disinterested third party until after counting them as required by California Civil Code section 1363.03 Plaintiffs therefore have no confidence in the outcome of the election and believe the board and their employees may have engaged in “stuffing the ballot box” in their favor. These actions of the board violated California Civil Code section 1363.03.


Other charges are based on California law violations. Clear Lake Riviera homeowners should pay attention to this lawsuit. They should read for themselves and decide if the board is violating their CC&Rs and breaking the law. Sometimes association boards don’t know CC&Rs are a two-way street. Homeowners can legally enforce CC&Rs upon associations just as easily as associations enforce them upon owners.


If the Clear Lake Riviera Community Association is out of compliance with their own governing documents and California laws, they will surely lose this lawsuit. Homeowners will be responsible for millions in special and general damages as well as legal fees. Anyone buying property in the Riviera should be aware of this litigation and its charges until it's settled. Anyone selling Riviera property should disclose this litigation.


Darrell Watkins lives in Kelseyville.


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