The homeowners right to arbitrate is being stopped by this lawfirm

April 29, 2006

By Sheila Holm (View author info)

The author of the article "Don't give up, you actually can fight back ! - You aren't without power, it just takes support of all homeowners" provides much needed encouragement, and sometimes the support of all the homeowners works.

However, as an involuntary spokesperson on behalf of owners of our homeonwers association, I am reaching the point of needing media attention.

We have been forced to pay an attorney, Peters & Freedman, and still, the right to arbitrate these issues is being stopped by the lawfirm we are paying through our HOA dues!

For three solid years - we have worked to clean up our board and correct the fraudulent actions (major financial issues).

Abuse of power is an amazing process to try to counter.

The lawfirm is countering each and every effort - supporting an owner that only lived in the community for 1 of the 18 years.

We proceeded to recall the board - we were not allowed to even hold a meeting.

When we finally obtained a Special Meeting to RECALL - the lawfirm held the meeting.

Shocked that we were successful with the RECALL and we had a new board - the lawfirm quickly held nominations from ONLY owners present - ignored our 31 (of 71 owners) proxy ballots and allowed RECALLed board members to be part of the list of board nominees!

They were not successful in putting their owner (noted above) on the board. Within days, the lawfirm threatened a law suit if I would not leave the board. The law firm has to proceed to arbitration first - and, I refused to resign. The lawfirm directed the board to put the man on the board. A newsletter was issued that I resigned and the board added the man to the board ...

Owners joined me in hiring a lawfirm at this point. We have been following all of the CC&R's and try to get to arbitration since this time.

We notified the insurance company that an invalid board was in place - the board replaced the insurance company, without notifying owners. The board increased the HOA dues by the maximum and proceeded "without proper documents, time or notice" with a Special Assessment. They were not successful (27 of 71), so they issued a statement in a newsletter - a majority of the quorum that voted (41 voted, as the nearly 30 off site owners did not have time to receive the ballot and respond) approved the assessment.

The board changed the payment amounts and dates - and still proceeded to collect. So, owners (per CC&R's) submitted to Arbitration within 10 days and followed all rules of AAA Arbitration (specifically stated in the CC&R's)

Then, the lawfirm filed an objection - jurisdiction. They fought owners, stating that AAA was not indicated within the CC&R's as the arbitration company to go through - there are many options and they would not participate ...

Three teleconference hearings later - AAA said - IF the HOA agrees to use AAA in the future - we will proceed at that time.

The entire reason to proceed to arbitration is due to the disagreement!

The power of this lawfirm and their ability to control the board is amazing!

The good news is we have great neighbors. The sad news is most people do NOT want conflict, especially continued conflict.

We are required to go through arbitration ... and yet, we are at the point where the HOA has removed our rights, since the law firm continually refused to proceed in 2004 and 2005, and now, they have legally filed they will not participate!

The letters from the lawfirm - our HOA fees are paying for - are purely sent to intimidate! The content causes most civilized citizens to feel sick about our justice system!

UPDATE: We had to hire an attorney - in addition to Peters & Freedman - the 2/3 majority signed with us to counter the board and fire Peters & Freedman - and they won't leave ...

Related link: Case No: Encinitas Village HOA - Peters & Freedman - AAA Arbitration