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The HOA Legal Mind Shooting the Messenger or Biting the Hand?
Posted By CotoBlogzz January 4, 2011
Laguna
Woods Village, CA – In the series The HOA
Legal Mind, A Terrible Thing to Waste, we
feature abusive common interest development boards use
legal resources mostly to support the boards’
self-preservation instincts, rather than benefit the
residents. This
case is slightly different.
It pits a service provider and disgruntled
ex-employees, but there is a common denominator –
the residents still lose out.
In
a memorandum
dated January 20, 2009. Milt
Johns, Professional Community Management (PCM) vice
president in a classic case of the tale wagging the
dog - the
service provider issuing an ultimatum to the Third
Mutual board of directors "respectfully requests the directors to adhere to
the following conditions.”
The demand
in essence turns the employer-employee rules around,
by having the service provider dictate what the board
can and cannot do as in "Directors will agree
to not breach the management agreement by performing
any work of the managing agent, eg. Preparing RFQs/RFPs
to solicit proposals from banks, law firms, lien and
collection companies, etc.", presumably not
going out to bid for property management services
either. The
ultimatum to the board also prescribes a chain of
command. "To
assist the Directors to this end, and effective
immediately, and until further notice, any contact
between the Directors of Third and PCM shall be
restricted to only the PCM Executives (currently Jerry
Storage, Jane Price, Kurt Rahan and Russ Ridgeway".
However, Mr.
Johns will be "very
happy to ease these restrictions once the roles of the
Directors and PCM as management agent have been
reconciled to the mutual satisfaction of both parties,"
according to the
memorandum.
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File photos: Left, Milt Johns, then PCM general manager. Right, security team making sure seniors do not become unruly during open board meetings. |
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It is fair to argue that the ultimatum delivered by Johns to the Laguna Woods' local governance was not a unilateral decision, but a message delivered with full knowledge and approval of PCM. And if not, when the ultimatum became public knowledge, why did the property management company did not react?
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On late January 2010 PCM fires Johns and names Jerry Storage as Johns' replacement. Storage “... is noted as one of the industry’s most respected experts and is fully equipped to uphold the PCM standard of excellence. In addition, Jerry’s diplomacy will assist our boards of directors to achieve the goals set out for their community.” says PCM's CEO Donny Disbro, in a press release officially announcing Johns' departure. United
Mutual president Gail McNulty in a state of
suspension of disbelief, thinks the
allegations about misdeeds and corruption
lobed at Mr. Johns are untrue, although
she has full knowledge of the infamous
ultimatum. Bea McArthur claims that the
John's firing has to do with not following the
contract
and in " in the opinion of
others." Implies she has no opinion. Fast forward to December 30, 2010 where in case no. 30-2010-00380231 filed in the Superior Court of Orange County, Mr. Johns cross-complains and alleges among other things, breach of contract, age-base discrimination, wrongful termination, breach of fiduciary duty and emotional distress. The defendants named in the case are PCM, Russ Disbro, Donny Disbro, Paul Hoommissen, Third Mutual, GRF and the law firms of Jackson Demarco Tidus Peckenpaugh and Much Shelist Freed Denenberg. |
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The HOA Legal Mind a Terrible Thing to Waste: |
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Did we mention that Mr. Johns cross-complaint in a Bell-isimo claims that he should not only be PCM’s CEO but also earn a base salary of $275.000 per year. Plus benefits plus 20% of PCM earnings before income tax? Guess who was to pay for such largesse?
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RELATED
VIDEOS RELATED
STORIES Posted
By
CotoBlogzz
06-11-2010
02:00
PM Laguna
Woods,
CA
– Community
activist
Mike
Curtis waged
a
battle
mostly
centered
around
what
he
thought
was
lack
of
transparency
and
malfeasance
on
the
part
of
the
community’s
property
management
company Professional
Community
Management,
Inc (PCM). That
fight
he
carried
on
to
literally
his
last
breadth,
as
he
made
calls
from
his
death
bed
to
other
residents
to
make
sure
they
continued
the
fight. It
can
be
argued
that
PCM
paid
Mr. Curtis
in
kind
plus
interests: Laguna
Woods
Village,
CA PCM
to
Dethrone
the
King
–
Cash
that
is! The
Thrilla
in
the
Villa:
Laguna
Woods,
that
is
-
The
Ultimatum Posted
by:
CotoBlogzz
| After
a
successful
Initial
Public
Offering
(IPO)
and
experiencing
an
exponential
growth
in
revenue
circa
1996,
Gateway
Computer
issued
an
ultimatum
to
a
computer
peripheral
supplier: You
can
bid
on
a
new
product,
however,
you
must
significantly
improve
the
quality
AND
reduce
the
price
of
the
new
product,
or
else.
The
demands
were
so
drastic
that
the
CEO
of
the
Taiwan-based
supplier
conceded
in
a
press
release,
picked
by
by
various
local
newspapers,
to
having
lost
the
Gateway
account. The
$5
Million
Landscape
Budget
and
Recall
Petition To
Recall
or
No
Recall,
&
The
HOA
Hall
of
Shame The
Hen
House
Guarded
by
the
Fox
in
Laguna
Woods
Village's
Foster's
Farm
&
the
Hall
of
Shame
-
News
This
Friday
at
2:00
PM Posted
by
CotoBlogzz
|
06/17/2009
04:00
PM Hoist
By
Their
Own
Petard
-
Fuses
get
shorter
in
Laguna
Woods
Village United
Recall
Petition
Signed
Sealed
and
Delivered
-
Finance
Committee
Meeting United
Board
Recall
In
Final
Stretch
?
4th
of
July
in
June! Prosecuting
Mr.
Curtis
-
or
is
it
Persecuting? Another
Political
Assassination
in
the
Works In
The
Villa Demand
for
Full
Scale
HUD
Investigation
into
Leisure
World/Laguna
Woods
Affairs Support
Katie
McDaniel Bring
it
On Fiduciary
Responsibility
Primer
–
Part
One PCM
&
Third
Mutual
–
The
Ultimatum Cynthia
Conners
Being
Asked
to
Resign Breaking
News:
LWV
3rd
Mutual
Lessons
Learned:
If
at
first
you
don?t
succeed,
hide
and
hide
again Political
Assassination
Foiled
By
Residents-
LWV
3rd
Mutual
besmirch
meeting
to
overthrow
board
president
fails
-
this
time! Political
Assassinations
in
Orange
County
?
It?s
the
Water! Serial
Assassin
in
the
Loose
In
Orange
County? Flash
Report:
New
Look
United
Mutual
Unusual
Business
or
Business
As
Usual Sleepless
in
Laguna New
Third
Laguna
Hills
Mutual
of
Laguna
Woods
Village
Board
Seated Law?
What
Law?
WE
are
the
Law! New
Golden
Rain
Foundation
Rules
of
Engagement $2
million
Verdict
Returned
Against
Homeowners
Association GRF
2009
Budget
Review,
Be
There
or
Be
Out
of
Luck! Different
Homeowners
Association,
Same
Issues The
Right
LWV
Leadership
for
Such
a
Time
as
This? Working
to
Serve,
Or
Serving
To
Work
-
Letter
to
OC
Register
Columnist To
Destroy
a
Community,
or
to
Destroy
the
Status
Quo?XThat
is
the
Question
in
this
Letter
to
the
Menifee
SCCA
Board
of
Directors HOMEOWNER
ASSOCIATION
TITLEHOLDERS
ARE
"HUMAN
CAPITAL" HOMEOWNER
ASSOCIATIONS:
A
CLUB
YOU
DON'T
WANT
TO
BELONG
TO Dare's
role
in
Pastures
cost
association
$100,000 HIRING
AN
ATTORNEY
CAN
BE
HAZARDOUS
TO
YOUR
HEALTH
LEGAL BRING
BACK
GOVERNOR
PETE
WILSON Should
I
stay
or
should
I
go
-
in/from
my
HOA?
X Casta
Courier
Coverage
of
Unhappy
Campers
at
Leisure
World SPENDING
OTHER
PEOPLE?S
MONEY
by
Donie
Vanitzian,
JDX(c)
2007
Vanitzian Critics
do
not
attend
board
meetings
-
GRF
that
is! The
New
Seven,
err...
Eight
Wonders
of
the
World "TWIN
RIVERS"
=
"TRIPLE
PROBLEMS" Lawyer
seeking
condominiums'
business
goes
over
the
line CONDOMINIUMS
ARE
A
GREAT
INVESTMENT-
FOR
LAWYERS Paraphrasing
the
LA
Times
on
Defeat
of
SB670
&
Wicked
Twin
Witches
of
the
West
-
SB
127
&
AB-980 Private
Transfer
Tax
-
Good
for
the
Common
Interest
Development
(HOA/CID)
Industry
or
Good
for
the
Politicians? Management
company's
tape-recording
tactic
puts
homeowners
at
risk Of
Trial
Lawyers,
the
AAJ
and
the
Democratic
Party Laguna
Woods
Village
CC&Rs,
What
CC&Rs?
I
Got
Your
CC&Rs
Right
Here! What
is
better
in
HOA
Management?
Transparency
and
Accountability
or
Feel
Good?May
22,
2007 HOW
DO
OWNERS
SPELL
L-A-W
S-U-I-T?
SENATE
BILL
NO.
127!X Two
of
the
Worst
&
Most
Detrimental
Laws
to
Hit
California
are
Sponsored
by
None
Other
than:
California
Association
of
Realtors
(R)
The
Gold
is
Gone
--No
more
gold
in
the
Golden
State! THE
LAW
OF
INTENDED
CONSEQUENCES
-
WHAT
A
DIFFERENCE
A
"WORD"
MAKES:
NO!
ON
ASSEMBLY
BILL
NO.
563 EMERGENCY!
EMERGENCY!
OOPS!
WE
JUST
HAD
THE
MEETING!
YOU
MISSED
IT!! CAN
YOU
OUTSWIM
YOUR
HOA
SHARKS?
or
will
you
drown
trying? HEY
GRAY
PANTHERS!
YOU
GOT
IT
WRONG! The
Law
of
Unintended
Consequences:
Legislation
and
HOA
BOD
Cause
and
Effect:
Clueless
in
my
CAR |
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