As I noted in my post, Deer Ridge Board Abuse Of Power Continues – Vote For Walkways Improperly Done, Joe Thomas and the Board have continued their abuse of power.
As the previous post says, the Board is REQUIRED to gain the approval of at least 90% of the mortgage holders of all loans on all condos at Deer Ridge. Not only have they not done this, they categorically REFUSE to do it. As a result, this vote is invalidated and will probably be a point of issue with the upcoming litigation.
We will press hard to, in fact, hold each member of the board personally liable for any and all monies spent on the railing alteration since they knowingly chose to blatantly ignore this provision.
“We Are In The Driver’s Seat – And Will Do What We Want To Do.”
That is a direct quote by one of your Board members, Tom Reise. In other words, Tom, speaking for the whole board, is telling all the owners that they hold all the power…and they can choose to ignore anything they want to – and to hell with the controlling documents for Deer Ridge and the rights of the owners to control what happens to their property and to their investment.
Even Their Minutes Are False
The totally controlled GGRC blog that does not even allow any owners to comment reported the minutes of the meeting on the Walkway Railings vote. However, true to form, their manipulated minutes do not even mention the prolonged discussion I raised on the 90% requirement – even though there was a discussion about this for at least 1o minutes before the meeting was hurriedly ended.
This is yet an other example of how the owners are NOT hearing the truth, the whole truth and nothing but the truth from the Board. We need to have the audio recordings of all board meetings made public so that this kind of manipulation of the proceedings can never happen again.
Board – You Better Learn A New Latin Term – Ultra Vires
Joey and the Board: If you plan on proceeding forward with the Railing replacements without the REQUIRED 90% vote by mortgage holders, you are in direct violation of the governing documents for GGRC and will be held, jointly and severally, personally liable for every dollar spent. You can be sure that we will pursue your ultra vires violations in any and all litigation regarding Deer Ridge.
You are hereby officially put on notice – and I strongly recommend you talk with your personal attorneys so they can explain this risk to you.
Ultra Vires
Directors have limited powers and may not take actions outside the authority granted to them by the governing documents or by board approval. An “ultra vires” act is one performed without legal authority; something done by a director which is beyond the scope of the director’s powers.
When that happens, each and every one of the board members will NOT be covered by the association’s insurance and will be held personally liable for his/her acts. Any contracts are voidable but the board, and especially the president, may be personally liable for any damages suffered by the home owners association.
Article XII of the Master Deed clearly provides that there shall be no alterations or additions to the common elements or any part thereof except as authorized by the Board of Directors and approved by not less than 75% of the total vote of co-owners and not less than 90% of the mortgagees.
Gross Negligence
Any expenditures not in compliance with this provision would be ultra vires acts outside the scope of authority of the Board of Directors and arguably would amount to gross negligence. (You better have your attorneys explain what gross negligence could mean with regard to GGRC and the rights of its 84 owners.)
The unit owners, as members of the association, would have standing to pursue a derivative action on behalf of the association to recover those funds from the directors making such expenditures.
Board: This Applies To ALL Your Decisions That Do Not Comply With The Documents
Nota Bene: This concept of your expenditures of ANY GGRC and RML monies not in COMPLETE compliance with the Master Deed and Bylaws would be ultra vires acts outside the scope of authority of the Board of Directors and would amount to the individual gross negligence of each member of the Board who did not go on record of officially trying to stop these acts.
The Board prides themselves on acting “jointly and unified.” This Board will find out that doing so will paint them all with the same brush when these matters get litigated – and we will be coming after each of your personal assets to pay back every penny of illegitimately spent funds.
You have been warned.
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