Someone sent this: Sender is not a lawyer but an owner and these are the facts as they are seen by an owner. This is not to be considered legal advice. Why are you being Sued? Smart strategic move- for Canyons required to have all parties in suit so the final decision is binding on all. What is the lawsuit about? 1. The suit is the dispute of how percent of interest in the common space is calculated. Section 5.3 of the Declaration of Condominium. a. The section includes a written explanation of how percent of interest is calculated by using a par value. Par value is used to calculate percent of interest. b. Section 5.3 refers to an exhibit c. Exhibit B is a table that shows the percentage of interest per unit in numeric form. The calculations on the exhibit were recorded in error. Par value was not calculated but replaced with a sq footage calculation. 2. Canyons believes that the written word as stated in Article 5.3of how percentage is calculated supersedes the numeric form as shown in exhibit B. There was an error in Exhibit B should be amended to reflect value based on Par value. 3. HOA believes Exhibit B should be used for the correct calculation a. previous owners of Canyons used Exhibit c as the calculation b. HOA believes that par value is subjective & arbitrary and not a proper way to place value upon a unit c. The HOA has counter sued the canyons for approximately 3 million in past over charge fees and dues. 4. How does the main lawsuit(s) effect each unit (numbers are for illustration purposes only) Call your HOA president to find out exact numbers a. If the HOA is successful you will save approx $200 a year b. If the HOA is successful in its counter suit i. 600 owners = $5,000 per unit. ii. If refunded directly to owner c. If HOA losses- i. Fees return to previous levels paid- approx $200 more a year ii. Re imbursement to Canyons for legal fees d. According to the HOA to date $400,000 has spent in legal fees 5. What choices do you have? a. HOA is offering representation chosen by the HOA. The HOA will cover a specific amount of the cost but will not guarantee how much. b. Chose your own attorney at your own expense c. Join with other owners to find representation not chosen by HOA at the groups expense d. Do nothing and be found in default- i. Consult a lawyer to what this ultimately means and how it effect you specifically ii. It is a declaratory judgment e. Put pressure on the HOA to stop action, or settle immediately i. Hoa has stated that they would proceed with the lawsuit no matter how many owners conceded to the Canyons. ii. Special meetings need 20% of voting members to initiate, happens within 45 days of requested meeting iii. To remove an officer- according to section 3.4 any unit owner proposing removal of a board member shall give notice thereof to the secretary. Any member whose removal has been proposed by a unit owner shall be given at least (10)days notice by the secretary f. Ask to settle lawsuit in favor of the canyons for settlement of the 2nd lawsuit in favor of HOA. i. Individual owners are not named in 2nd lawsuit. ii. 2nd lawsuit is over fees and use of the parking, pool, and spa.
Posted on: Fri, 14 Mar 2014 13:56:07 +0000