Board had assessed the owner over $70,000. in fines and bills during a dispute about toxic mold in their common walls

August 21, 2005

By HOA Advocates of West Hollywood, Ca.

The CAI affiliated Homeowners Association, the Courtyards of West Hollywood claimed the homeowner owed them in fines and bills they assessed totaling over $70,250.. After the owner sued the Association, the Courtyards ended up dropping the entire $70,250. as well as paid out of their reserves $75,000. in damages to the owner in addition to their legal fees.

In March 2005 a settlement was reached between The Courtyards of West Hollywood Homeowners Association, Inc., a condominium complex of 194 units in Southern California and a homeowner who sued the Courtyards HOA and their Management Company, Top Notch, for Fraudulent Concealment, Breach of Fiduciary Duties, Negligence, and Intentional Infliction of Harm etc.

Prior to litigation for nearly a year, a dispute continued between the owner and the Association over repairs to common wall areas. The owner claimed it was the negligence of the Association that caused the damages that resulted in toxic mold to the common walls within her unit and that the Association was responsible for and unwilling to make the proper repairs. There ended up with an average of over 100 pages of correspondence. The majority of the correspondence was between the CAI Association attorney Adrian Adams of Adams & AuCoin and the owner, where the Association threatened the owner with a lawsuit, restraining order, suspension of privileges, and proceeded to fine the owner $200. every day for over 6 months.

The Association ended up fining the owner over $34,800. in fines claiming the owner was refusing entry for repairs to common wall areas within her unit. The Association then added an additional $15,606.91 for their legal fees, amounting to over $56,472.91. The Association then billed back to the owner an additional $6,606.00 in repairs in addition to what the owner had herself already paid out in over $8,000. in repairs for damages to the common walls of her unit. The Association then proceeded to special assess the owner another $15,252. claiming the owner was responsible for the Associations 2004 increased insurance premiums. The Association claimed the owner owed the Association well over $70,250.

In spite of the owner being unable to reside in her condominium throughout the entire dispute due to damages, she continued to pay her monthly homeowners dues of nearly $400. a month. This was in addition to her monthly mortagage payments, additional cost of living expenses to reside elsewhere, as well as the costs of repairs.

Without hope of amicable resolution, the owner finally sued her Homeowner Association in the above causes of action for property damages, physical injury as well as emotional injury for intentional infliction of harm through harassment. The homeowner sued the Association for damages in excess of $100,000.. The Association counter sued the homeowner for the same amount of damages claiming the owner caused the damages and then refused to allow the Association to make repairs.

In a court ordered mandatory settlement conference that took place in the Santa Monica Courthouse on March 8, 2005, the Homeowners Association of the Courtyards of West Hollywood dropped their entire $70,250 (seventy thousand, two-hundred and fifty dollars) in fines and bills against the owner. In addition to dropping all their fines and bills, the Association then paid the owner $75,000 in a settlement of damages. The owners insurance company paid the Association $10,000 for settlement of damages in the Associations cross-complaint.

The Board of Directors of the Courtyards HOA during the time of dispute and or litigatin who approved the fines and bills to the owner were, Karen Hudis, John Richette, John Tucker, John Vance, Howard Steinore and Tracy Dyche, Board appointed CFO. The Property Manager for the Courtyards is John P. Kelly, also a member of CAI.

Vana Margolese of Matison & Margolese in Beverly Hills partnered with David Harter at the law firm of David Harter who both represented the homeowner. In the Association's counter-suit of the owner, her own insurance company represented her through attorney Greg Gibeaut of Gibeaut, Mahan & Briscoe.