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On 5/11/2017 the Ranches HOA filed a memorandum with the Forth District Court, this is a legal summary of the memorandum filed.
The Master Association, under the recent ruling, must pay out large amounts of money to the sub-associations in order to stratify the judgement against it. Recently the Master Association filed a memorandum and motion to clarify how the payments should be made to the sub-associations or “whether the wrongful lien damages should be paid directly to the people who incurred them.” Furthermore the motion argues that certain of the sub-associations legally should not be able to collect damages on behalf of the members of the sub-associations. A payment in satisfaction of the judgement of $508,195.26 was made to the sub-associations on April 3rd, 2017. The Master-Association calculated that of that payment, $166,802.92 “is owed to people who no longer live in the sub-associations.” Some communications were made between the attorneys concerning accounting for the payments being made, and the attorneys for the Master-Association are seeking “clarification from the Court whether it is appropriate for the sub-associations to retain the reimbursements ordered by the Court, or whether these monies should be reimbursed to the people who actually paid them.” Going further, the Master Association questions whether or not it is appropriate to pay any party other than the party that incurred the damages. In Utah Rest. Assoc. v. Davis Cnty. Bd. of Health, 709 P.2d 1159 (Utah 1985), an association must meet two criteria before being granted standing to sue on behalf of its members: “(i) the individual members of the association have standing to sue; and (ii) the nature of the claim and relief sought does not make the individual participation of each injured party indispensable.” The Master Association argues that, under Utah Restaurant Association, Cold Springs does not have standing to seek the refund of fees paid. Additionally, they further argue that the sub-associations that represent condominiums should not have been included in the final judgement. “Specifically, 64.42% of the residents of Willow Creek, 68.33% of the residents of Rock Creek, and 75.21% of the residents of Cold Springs have moved” since October 26, 2010 alone. The turnover in the condominiums is very high and the total percentage of turnover would likely be much higher if the number went back to the beginning of the wrongful lien, December 4, 2001. The Master Association argued that these sub-associations cannot have standing to sue for people who are no longer part of the sub-associations. Lastly the Master Association seeks clarification on the use of its reserves in the payment of the damages. The law strictly dictates that the reserve fund should only be used for the designated purpose at the time of the creation of the fund. In this case the reserve fund was created to pay for maintenance fees. The Master Association argues that the fund should be set aside to continue to pay for maintenance costs. Assets of the Master Association are limited and the association may not be able to pay all of the damages owed, so the Master Association asks for guidance on the priority with which payments should be made.Here is the HOA filed court memorandum. [pdf-embedder url=”http://cedarvalleysentinel.com/wp-content/uploads/2017/05/Memorandum_in_Response_a_or_Relief_From_Order.pdf”]
Mike Kieffer is an IT geek by hobby and trade, with a BS in Information Systems & Technology. He is a proud father of 10, a grandpa, an author, a journalist, and internet publisher. His motto is to “Elevate, Inspire and Inform”, and he is politically conservative and a Christian. Mike has a passion for technology, writing, and helping others. With a wealth of experience, he is committed to sharing his knowledge with others to help them reach their full potential. He is known for his jackassery or his form of self-expression that encourages boldness, creativity, and risk-taking. It can be a way to push the boundaries and challenge traditional norms, leading to creative solutions and positive change.