There has been some trouble brewing between Ranches HOA and its sub-HOAs for a while now. That contention eventually ended up in court and come to a ruling in favor of the sub-HOAs on March, 4th 2017 in Judge Derek P. Pullan’s court room.
At issue were several actions that the Master Association took against homeowners and sub HOAs, and individual homeowners. Beginning in 2004 the Master Association enacted a series of declarations that applied to all of the units within The Ranches. The sub-HOAs sued, taking issue with several aspects of the declarations.
They claimed that the 2004 declaration was not properly executed, so it did not apply to all of the homeowners within The Ranches. The court agreed that the 2004 declaration was not proper. In order for the declaration to be proper the declaration had to be enacted before the homeowners purchased the land or those homeowners that already had purchased their homes had to agree to the declaration. The court found that the sub-HOAs or the homeowners never signed the declaration it was not enforceable. In a previous ruling on May 10 of last year the court found that despite not being valid the 2004 Declaration was not a wrongful lein.
The additional declarations, the Notice of Continuing Obligation and the 2010 Notice of Existence, the court ruled to be wrongful liens. There was no legal basis for the Master HOA to issue the 2010 Notice of Continuing Obligation. Specifically, it was not “authorized by or contained in an order or judgment of a court of competent jurisdiction” or neither were they “signed or authorize pursuant to a document signed by the owner.” Additionally the 2010 Notice of Existence added additional covenants that were not contained within the 2004 Declaration. The additions create the need for the homeowners to agree in writing to the additional covenants in order for the Notice of Existence to be valid. Since the homeowners did not agree by signing either of these documents, they were wrongful liens on the properties.
The court rejected all of the Master Association’s defenses and awarded damages to the plaintiffs for the wrongful liens.
Drew Curley, an Eagle Mountain Resident and material witness in the case stated, “Today, David beat Goliath. The judge has ruled on the Ranches HOA lawsuit, and they lost. They need to let the 3 associations out of the HOA, pay attorneys fees, relinquish 4 years’ assessments, and pay about $14M in damages for wrongful liens.”
Eagle Mountain City has issued the following statement:
Although Eagle Mountain City and The Ranches Master HOA are separate entities, Eagle Mountain City has been following a lawsuit filed by the Willow Springs, Rock Creek, and Cold Springs sub-HOAs against The Ranches Master HOA. A Ruling and Order has now been issued against The Ranches Master HOA in the lawsuit, including in part, damages of approximately $14,000,000, approximately $400,000 in dues placed in escrow to be returned to the sub-HOAs, and release of obligation for lots or units within the Willow Springs, Rock Creek, and Cold Springs sub-HOAs to pay dues to The Ranches Master HOA from this point forward.
Eagle Mountain City is currently reviewing the findings of the Ruling and Order, as the City has agreements with The Ranches Master HOA related to the maintenance of open space and trails within The Ranches. The City is prepared to deal with any contingency moving forward.
Residents who live within The Ranches Master HOA area should direct any questions related to this lawsuit to The Ranches Master HOA office.
The effects this ruling will have on the Ranches HOA, is unknown at this point. They have several options available to them, including appealing the ruling, bankruptcy, or trying to continue operations as they currently are. The Ranches HOA is the largest of the HOAs in Eagle Mountain, and this ruling and order has the ability to effect a large percentage of the residents in Eagle Mountain. The Master HOA is also responsible for maintaining some of the green space in The Ranches area in Eagle Mountain. The status of that green space and who will be responsible for its up keep will be dependent on the future actions of the Ranches HOA.
Trial Documents and Ruling
In some browsers, the pdf does not embed correctly, so if you cannot see the Rulings below, you can download the PDF by clicking here.
Mike Kieffer – Editor-in-Chief, Cedar Valley Sentinel
Mike Kieffer is a dynamic leader and community advocate based in Eagle Mountain, Utah. He serves as the Editor-in-Chief of the Cedar Valley Sentinel, a local publication dedicated to informing, inspiring, and elevating the Cedar Valley community through honest and accurate journalism. With a passion for fostering connections, Kieffer has made it his mission to highlight local businesses, provide reliable news, and support community development.
Beyond his editorial role, Kieffer is the owner of Lake Mountain Media, LLC, a company specializing in media and communications, and the co-owner of Quail Run Farms, which focuses on sustainable farming and community engagement. He also actively contributes to the local economy and culture as a member of the Eagle Mountain Chamber of Commerce.
Kieffer’s dedication extends to preserving and promoting the history and heritage of the Cedar Valley area. He often participates in community-centered events and media, including podcasts that explore the unique aspects of life in the region. Through his varied endeavors, he remains a steadfast advocate for the growth and enrichment of the local community.
Thank you, Mike, for posting relevant information! I had been looking for the court documents, but my google-fu was weak.
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Mike Kieffer – iNSIDER