March 12, 2004

By Julie Reeder (View author info)
Copyright The Village News

At a press conference held recently by homeowners James and Sonni Bass in the quiet upscale neighborhood of Brook Hills, homeowner association stories unfolded that could have topped most made-for-TV movies. These stories included accusations of spite, personal vendettas, collusion, fraud, and non-judicial foreclosure of people's homes under the Davis Stirling Act.

Sonni Bass related her story to reporters and neighbors. She said, "We are in danger of losing our family home, all because of a personal vendetta from the former president of our homeowners association. There have been a lot of rumors going around and I just wanted all my friends and neighbors to hear my side of the story."

Attendees of the conference included neighbors who were seeking information and homeowners from outside the area--several who claimed to have complaints about Jaeschke, Inc., the firm that manages Brook Hills homeowners association and their legal counsel, Peters and Freedman, LLP.

According to a lawsuit filed by Brook Hills Homeowner's Association, the Bass' are being sued for noncompliance in regards to the covenants, conditions and restrictions (CC&R's) the property is subject to. Sonni Bass says the complaint focuses on the requirement for landscaping to be installed within 180 days after the conveyance of the lot to the owner. The Bass home now sits on 2 fully landscaped acres, in stark contrast to several unfinished landscapes around them.

The Bass' filed a cross complaint stating, in their opinion, that the Brook Hills Homeowners Association is selective in enforcing this rule. At the press conference, Sonni Bass stated that dozens of homeowners were not complying with the CC&R landscape requirements, which she said were written for a neighborhood with much smaller lot sizes.

The second part of the complaint, Bass says, involves a light over her sport court. According to the complaint filed by the homeowner's association, Bass 'installed certain hardscape, including but not limited to, a sports court that was not in the approved plans.' Bass says, in her cross complaint, that the association's architectural committee approved the revised landscaping plan, which included a sport court and a light standard.

According to Bass, the light is in compliance by being no taller than 18 feet in height and 1000 watt in brilliance. The Bass' landscape was designed by a contractor who had worked on other homes in the Brook Hills Development.

According to Bass, her nightmare started in November 2002 when she was showing her guests her new landscaping, by turning on the light over the new sport court. Previous to this, she agreed not to use the light for its designed use until hearing back from the architectural committee. The committee was to have responded within 30 days, which Bass claims they did not. She claims that the (former) homeowner association president called her and 'threatened on behalf of the association to direct association operatives to trespass on the Bass' property and destroy the light standard with jackhammers. Bass responded by threatening to contact the police if this occurred.

The Bass' received the notice that they were being sued soon after, they said. Sonni and her husband retained legal counsel and countered with selective enforcement.

"The cross complaints have taken over this case," said Michael Kim of Peters and Freedman. "We have a motion to strike before the court because we believe that the cross claims have no merit." Cross defendants are the homeowners association, Jaeschke, and the former board member.

Brook Hills homeowner Paul Bouzan expressed his opinion at the meeting by saying 'the problem with the whole scenario was the lack of due process.' According to Bouzan, the CC&R's state that you have to have a written complaint, response and resolution hearing, a warning to sue before the initiation of a lawsuit. He went on to state that, in his opinion, the light is legitimate under the C&R's.

"I would have to disagree with that," said Michael Kim. "The Association extended Bass' six months to talk to them before it was filed. They had lots of chances. Under Civil Code 1354, HOA's are required to send a request for alternative dispute resolution before they file an action. We served it and they ignored it."

Dave Cavanaugh, who said he had two properties in Jaeschke-managed homeowners associations, speculated that, "Unfortunately if the property owners are aligned with a bad or poor management firm, boards become susceptible. Homeowners Association boards are supposed to serve the homeowners. Instead, they become aligned with the management company and the attorneys and they work against the homeowners."

"The process to date has cost both sides over $80,000, mostly in attorney's fees, and someone is going to have to pay this," said Sonni. "We just refinanced our home to pay for all this beautiful landscaping. My husband and I are not rich, but we are not going to let someone bully us. This just isn't right."

Dave Cavenaugh, who said he has been in a similar situation to the Bass' stated, "this is a typical situation for the Peters and Freeman law firm and Jaeschke. Homeowners are fined or levied, and in the end, under the 5-year old Davis Sterling act, people lose their homes; without any due process."

It was reported at the press conference that the same legal firm that handles the Brook Hills Homeowner's Association also handled the foreclosure process on Melissa Colburn, who appeared at the conference. She said she was 'one of the lucky ones who won her house back after a court battle,' but agreed with several other victims at the meeting that 'Sonni's story is a typical one when dealing this law firm.'

Some of the attendees had complaints about the homeowner association meetings and elections. Cavanaugh commented that his experience with elections also mirrored the complaints of the press conference attendees and that he has warned several homeowners' boards about this law firm. He said he knows of five other associations 'experiencing this same scenario, including elections where proxies are thrown out, the attorney steps in to run the meeting and a board is elected who is friendly to the law firm.'

Cecilia Taylor, a Realtor from San Diego, said she 'has had experiences with this same management company and law firm.' She supported Sonni's position.

Melissa Colburn said, "Not all homeowners associations management companies make money the same way. Some collect fines and levies and that's how they make money. So, it pays for them to assess people." She said that she had discovered that some management firms charge very little from the dues, but contract to keep the fines.

A trial date has been set for July, but Kim said that efforts are being made to resolve the matter before then.