Watch for the Jan. 2025 Financial Results
If you are like me, you will be watching for the January 2025 Financial Operating Results to be posted on the HOA's website. Or to pick up a copy at the March 4th board meeting.
These results will reveal more about the true cost of the HOA's legal case against Gus Philpott (me). Be sure to look at Line 6500 - Legal / Professional Fees.
My guess is that the legal costs took a big leap as a result of legal fees incurred in December, when the case was filed in the Richland County Court of Common Pleas. Will the law firm's December bill get paid in January? Or will it linger into February for payment?
Time is Money. The lawyers (plural) will have spent a lot of time with the HOA's president, Danny Trapp, in preparation of the Summons and Complaint, the Temporary Restraining Order (TRO), and the Affidavit of Danny Trapp in support of the TRO and the Summons and Complaint.
The HOA budgeted $20,000 for legal fees in the whole year of 2025. My guess is fees will exceed the budget very early in this new year. And this is for an unauthorized, prohibited lawsuit.
In addition to the billed time in December, January's legal fees will be high, because two lawyers from Turner Padget were in court on February 11th, when a judge heard from one of them and from me. Court-appearance time often garners the highest billing rate of a lawyer.
February 11th was the date that Danny Trapp did not appear in court. He is the HOA's main (only?) complaining witness. One of the lawyers tried to minimize his non-appearance (absence), but there was nobody to speak for the Association. The lawyer repeated some of Danny's allegations, but he was not there to speak them himself or to be cross-examined.
There are many things wrong with the HOA's case. The most important is that, according to the CC&Rs, the HOA cannot commence a judicial proceeding against me. It didn't get the approval of the Voting Members. Secondly, the Board never approved it. Read the Minutes. You won't see a vote by the Board. Did the Board ever ask about the cost?
Third - is Danny telling the truth in his Affidavit? Does the Board agree with his Affidavit? Are they even aware of it?
Somebody should ask the Board at the March 4th board meeting how much they are willing to spend on this case: $25,000? $40,000? $60,000? Is the sky the limit?
Should the HOA cut its losses now, dismiss the case, settle with me, and agree to comply from now on with its own CC&Rs, By-Laws, and PRM?
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