What Is Art. XIII, §10 in the CC&Rs All About?
What is this "Art. XIII, §10 Litigation" in the CC&Rs, about which I keep writing?
This Section in the CC&Rs protects the Members (homeowners) from exactly the lawsuit (and its expenses and liability) that was filed against Gus Philpott (me).
"Section 10. Litigation. No judicial or administrative proceeding shall be commenced or prosecuted by the Association unless approved by a vote of seventy-five (75%) percent of the Voting Members. In the case of such a vote, and notwithstanding anything contained in this Declaration or the Articles of Incorporation or By-Laws of the Association to the contrary, a Voting Member shall not vote in favor of bringing or prosecuting any such proceeding unless authorized to do so by a ‘vote of seventy-five (75%) percent of all Members of the Neighborhood represented by the Voting Member. This Section shall not apply, however, to (a) actions brought by the Association to enforce the provisions of this Declaration (including, without limitation, the foreclosure of liens), (b) the imposition and collection of assessments as provided in Article X hereof, (c) proceedings involving challenges to ad valorem taxation, or (d) counterclaims brought by the Association in proceedings instituted against it. This Section shall not be amended unless such amendment is made by the Declarant or is approved by the percentage votes, and pursuant to the same procedures, necessary to institute proceedings as provided above." [emphasis added.]
Did Voting Members inform their respective homeowners that the HOA wished to sue Gus Philpott (me), and did 75% of those homeowners in a neighborhood approve?
Did 75% of the Voting Members (those neighborhoods who gave 75% approval) approve of the lawsuit against Gus Philpott?
Upon information and belief, NO VOTING MEMBER was asked to approve the lawsuit.
Four of the neighborhoods (19.6% of the homeowners) didn't even have a Voting Member. Twenty-three other neighborhoods did not have a legitimate, duly-elected Voting Member. Only Barony Place has a legitimate, duly-elected Voting Member.
The Board of Directors never voted to approve the lawsuit.
The Board of Directors never voted to authorize Danny Trapp, Board President, by Resolution to direct the HOA's law firm, Turner Padget, to file the lawsuit.
Did Danny Trapp start this lawsuit in the name of the HOA without its approval?
Because the lawsuit was unauthorized, prohibited, and unapproved, payments of invoices for legal fees are illegal disbursements of HOA funds.
Did LaToya Adams, the Treasurer from November 2024 - May 2025, commit a financial crime by allowing payments of those invoices? Did CAMS participate by issuing payments it should have known were illegal?
Is the new Treasurer since July 1, 2025, William Hill, committing a financial crime by allowing payments for a service that was never approved by the Board of Directors?
Is it way past time for responsible Board members, the Voting Members, and Members (homeowners) to stand up and object?
The Covenants Committee addressed the Board on this subject on August 5, 2025. The Minutes should reflect their remarks. I was not at that meeting, but it is my understanding that the Committee told the Board that the lawsuit is wrong.
Some of the Voting Members are raising the alarm.
Meanwhile, legal expenses of the HOA continue to rise.
There is only one way to stop those expenses.
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