After losing the lawsuit which we filed against a homeowner who installed an unapproved roof covering, the defendant’s attorney filed a motion asking the judge to require that our association pay their attorney’s fees of $28,423.25 and costs of $678.39. The Board felt that these fees were excessive; about $10,000 more than our attorney charged. If the judge required us to pay the entire amount in a lump sum, we would have a serious cash-flow problem and face the possibility of bankruptcy. Based on our experience with this judge, we felt it better to try to negotiate a lower amount and to stretch the payments over a period of at least three years.

Through our attorney, several offers and counter-offers were made. Just before the scheduled court hearing, we agreed on a settlement of $23,000 to be paid in three installments; $10,000 now, $11,000 on 1 February 2003 and $2,000 on 1 February 2004. In addition, we accepted a judgment of the full amount, which means that if we fail to pay an installment on time, we could be required to pay the full $29,101.64. When the final payment is made, we will receive a release from the judgment.

By negotiating the amount down and stretching it out over three years, we have avoided a serious cash-flow problem. We will still be able to provide all the services which the members have come to expect. It does, however, mean that we will not be able to initiate any large new projects such the entrance upgrades we did over the last several years. In another article in this issue the proposed 2002 budget is discussed and you will see that we have budgeted $11,000 in legal fees; the $10,000 first payment which we made February 7th plus $1,000 for incidental costs this year.