Mediation

During the court hearing that was held on December 9, 2011, Judge Rex Ogle ruled that the parties would be required to participate in court ordered mediation.

Unfortunately, this mediation, while court ordered, is not binding.   If history is any indicator, the “board” will not participate in good faith which will mean that the mediation will be a complete waste of time and money.

My strong preference would be to turn this over to binding arbitration so these matters could be cost-effectively finalized.  But the “board” has no interest in this – and the judge cannot order this.  So, we are stuck with probable meaningless mediation.

While we had tried to short circuit this whole process with our motions for summary judgement, the judge made it clear during the hearing that he was not going to rule on any of the issues – and he seemed relieved to find out that we had requested a jury trial.  So be it.

Jury Trial

We will do what we can to expedite the mediation so that we can quickly get it out of the way – and move to set a trial date as quickly as we can -  once our interrogatories and depositions of Joe Thomas, board members and current and past employees are completed.

We are actually looking forward to showing 12 jurors our proof of the multiple violations by this “board.”

We can’t wait to show how the “board” has squandered 40% of every year’s HOA fees for 16.5 years on RML’s negative cash flow.

We can’t wait to show the jury how the “board” has wasted an average of $116,000 a year, EVERY YEAR, on feeding the negative cash flow of an illegitimately formed RML for a total of nearly $2 million.

We believe that a jury of our peers will see the ongoing bias and discrimination against any owner who does not use RML.

We believe that the jury will see from the evidence that Joe Thomas and the “board” have slandered and libeled me for years, including portraying me in a “false light.”

We believe that the jury will see the self serving benefits that Joe Thomas, board members and other “insiders” have enjoyed at the expense of other owners, including the “trade out” use of units that were not owned by these insiders.

We believe that the jury will see that the strained interpretations of the Master Deed by Joey and the Gang are transparent abuses of power that ignored the requirements of our governing documents.

We believe that the jury will see the ridiculous requirements for reviewing the books and records for what they are:  Intentional, multiple road blocks that are fully intended to actually keep the GGRC books and records out of the hands of owners – all an intentional and flagrant violation of the Tennessee Horizontal Property Act.

We believe that the jury will empathize and share our anger at how this “board” has arbitrarily and capriciously run Deer Ridge as their own private fiefdom for years.

We genuinely believe that 12 jurors who are all our peers will rule in our favor on all counts – and will require ALL the changes we have sought at Deer Ridge Mountain Resort – along with awarding us damages, interest and a return of all of our overcharged HOA fees and assessments.

For these, and other reasons, we very much look forward to this jury trial.

New Derivative Action Lawsuit

In addition to all of the above, we are currently preparing a new derivative action lawsuit against Joe Thomas and all individual board members.

This lawsuit will be brought by at least seven current Deer Ridge owners.

These owners will sue the Gang of Six on behalf of GGRC as a way of forcing this renegade “board” to shut down the money losing RML and force them to abide by the multitude of Master Deed and Bylaws that the “board” continues to violate.  More about this derivative action lawsuit in the near future.

They Started It – We Will Finish It

As one owner stated in a posting here on this blog, “The board started this.  They sued Robert first.  And they are wasting all of our money for their own agenda and vendetta.”

I obviously agree – but we will do what we need to do to finish this – and finish it right.

Stay tuned!

The Deer Ridge “board” has recently sent all owners two mailings.

Interestingly, they paid for postage and personnel time out of all of OUR money – in spite of their recently claimed decision to save owners money by only using email and postings to the GGRC website for all future correspondence to owners.

I guess panic on their part forces them to do even more dumb things.

Both of their mailings were filled with so many blatant lies, misrepresentations and “false light” propaganda, it is hard to know where to start…so, I’ve decided to break apart my responses into segments….so stay tuned for more responses in upcoming blog posts.

First, The Good News!

As a direct result of my efforts to find all owners a better rental management company deal, I have personally forced RML to lower their fees for the 62 owners that were on RML.  The Gang of Six has lowered their outrageous rip off 50% management fee back down to a still above market 40%.

Like me or not, agree with me or not, this happened solely because of the deal I negotiated for all owners with Cobbly Nob Rentals.  If I had not done this, I can almost guarantee that all 62 owners would have paid the 50% fee for at least all of 2012 and probably way beyond.

If your unit has gross rentals of only $10,000 a year, this means that my actions have saved you at least $1,000 for 2012. 

For all 62 owners using RML, this amounts to a $62,000 aggregate savings for 2012.

The “board” likes to falsely tout that I have cost GGRC $17,000 for legal fees as a result of my trying to force them to abide by our governing documents and Tennessee state law – and their two lawsuits against me to try and shut me up.  (As one owner put it:  They sued me first.  So they are responsible for wasting all of our money on legal fees.) Well, even if that were true that I cost GGRC $17,000 (which I did not), then this extra $62,000 that will now end up in the pockets of owners, instead of Joe Thomas’ pockets, more than offsets their wrongly claimed $17,000 cost!

RML users, you’re welcome – but there are even better savings by only paying Cobbly Nob Rentals 35% instead of 40% to RML…plus, Cobbly Nob Rentals’ track record of 50% to 60% economic occupancy is significantly higher than Joe Thomas’ abysmal 38% average economic occupancy! 

All of this means that you would very likely still end up with thousands of additional dollars in YOUR bank account at the end of 2012 if you make the move to Cobbly Nob Rentals.  But more about that later.

If Not For Me, How Many Years Would You Have Been Ripped Off By RML?

By the way, do you realize that RML was ripping off all owners for the same 50% management fee when I bought my unit in August 2005?

Do you realize that it was through my “bizarre” and “anti-social” behavior that I was able to effectuate change to the benefit of those owners using RML back then?  Check the records,  email trail and the old web site postings to verify the facts for yourselves. (“Bizarre” and “anti-social” are just two of the slanderous and libelous terms used by Luther Parker and the Gang to try and put me into a “false light.” If you notice from their mailings, Luther and the Gang try to do that to anyone and everyone who objects to the way they want to run their little fiefdom.)

What I believe that management fee history means:  That Joey and the Gang of Six would NEVER have changed the RML management fee back to 60/40 from its current 50/50 rate – and would have continued to rip off RML users for at least the next five plus years.

This means that my actions to successfully break the RML monopoly could save each owner $5,000 over the next five years for a total savings for all RML owners of $310,000 more bank deposits in their bank account instead of the bank account of RML and Joe Thomas.

You are welcome.

Gee Joe, What Changed?

There is one quick corollary to this change by the board: Why were they overcharging these 62 owners by over $62,000 a year to begin with if you can now give up that overcharge so quickly and easily???

Gee, Joe, what changed in the last 100 days since you raise the rate on these folks? (By the way, you all are STILL being charged the 50% fee at least until the end of 2011.)

Did something change in the way of spectacular performance of RML to do away with RML’s annualized $120,000 in claimed losses that necessitated this change?  (Note to owners:  The real loss is over $150,000 a year. Click RML Real Loss for details.)

Did Joe Thomas give up his entire annual compensation and benefits so that the full $120,000 annualized RML loss would be wiped out completely?  Is that why all of a sudden there was no need for continuing to rip off the RML users by the incrementally increased $62,000 a year?

Or, much more probably, did they find out that with the monopoly broken, owners were not going to choose RML once they discovered that other companies offered a much better deal!

Not A Single Penny To Me – And A Lot More Dollars To You

Joey and the Board wrongly preach that I am in some kind of partnership with Cobbly Nob Rentals.  I am not.

I also had deals from other management companies but they were at 40%.  Greenbrier, which recently merged with Cabin Fever in Pigeon Forge, was one company that was interested in managing Deer Ridge condos.  If anyone is interested, I will be glad to forward their package to you.

Also, to again be crystal clear, I certify that I am receiving zero compensation or consideration of any kind as a result of any owner renting from Cobbly Nob Rentals or any other management company.  Period.

I just want Deer Ridge Owners to make as much money for THEIR pockets as possible.  The good news is that I have already succeeded with that goal…even if zero owners change to Cobbly Nob. (Last count I heard was that 11 owners had made the change or were in the process of changing to Cobbly Nob Rentals.)

Again, the good news is that even for those of you who unwisely stay with RML, you as a group are $62,000 better off in 2012 – and over $310,000 over the next five years.  The better news is that you can make a whole lot MORE money by making the change to Cobbly Nob – and help us in our fight to shut down the illegitimate RML which has already lost GGRC owners $2 MILLION.

In the meantime, Merry Christmas!  Enjoy the extra money in YOUR pockets!

To:   Luther Parker and All Other Individual “Board” Members

Re:   Presentment Of Demands To All Individual Board Members On Behalf Of GGRC

Date:   November 10, 2011

On behalf of, and representing, Gatlinburg Golf and Racquet Club, aka GGRC, I hereby demand the following from all individual board members of GGRC and Ridge Management, Ltd. (“RML”).

• That RML be immediately shut down to stop the hemorrhage from massive cash flow losses that are jeopardizing GGRC’s financial future.
• That the 2012 budgets reflect no activity for RML.
• That Joe Thomas be fired for cause as a result of ongoing massive losses caused by his management of RML and the inability of GGRC to pay his excessive and above market compensation.
• That the 2012 budgets reflect that all HOA monthly fees be cut by 50% as a result of no longer losing money from operating RML and no longer paying the above market compensation of Joe Thomas.
• That an insurance escrow account be established and funded in full accordance with the GGRC Master Deed, Article X, entitled “Insurance”, that provides in Section 3 that all owners are to pay a separate check for their pro rata share of the Common Expense for insurance so that it can be deposited into a separate trust account.
• That all discrimination against resident owners cease immediately.

The above points are more fully described below.

However, the bottom line:  If these demands are not immediately and fully implemented, we intend on pursuing an emergency request for the Judge in our case to place a court appointed receiver in charge of all aspects of Deer Ridge Mountain Resort and remove this board and Joe Thomas from any and all decision making.

If these demands are not met, we intend on presenting motions for this and other actions, during the scheduled December 9, 2011 hearing on our motion for partial summary judgment.

Immediately Shut Down RML And Fire Joe Thomas

You admitted in the August 2011 board minutes that RML lost over $58,000 for the first six months of  2011.  You admitted you were arbitrarily shifting approximately $16,000 in RML expenses to GGRC in order to “cook” the books and misrepresent the real cost of operating RML.

This admitted loss extrapolates to a nearly $120,000 admitted loss for RML each year.  By my calculations, the real loss with honest cost accounting is over $150,000 a year.  This represents over HALF of all HOA fees collected each year from all Deer Ridge owners.

As a consequence, by shutting down RML, our HOA would no longer have to pay these monies out to support RML and could cut all HOA fees in half – which is the best thing for ALL owners.

As you know from prior correspondence, I have successfully negotiated a rental management deal with Cobbly Nob Rentals.  They are bigger, more experienced, generate better results for owners in gross collections and is significantly less expensive than RML.  RML is, in fact, charging all Deer Ridge owners a rental management fee that is 43% higher than the Cobbly Nob Rental deal.

As a consequence, all owners are better off using Cobbly Nob Rentals than RML for two reasons:

1. They get to deposit that extra 43% in their own bank accounts
2. All owners save half of their annual HOA fees that are currently being squandered on supporting RML’s huge negative cash flow.

RML has always lost owners a lot of money.  By my calculations, over $1.3 million.  By Joe Thomas’ own accounting, even with improper cost accounting, RML lost GGRC home owners over $359,000 over a ten year period from 1995-2004.

Again, these are numbers from Joe Thomas showing at LEAST a $359,000 loss that was paid for out of the pockets of every Deer Ridge owner during this 10 year period.

Irrespective of the fact that I believe that RML is totally illegitimate according to our Master Deed and Bylaws, the above numbers show how incredibly stupid it is for GGRC to be in the motel business.

There are only massive losses and no upside potential for Deer Ridge owners.  And, with the deal that I successfully negotiated with Cobbly Nob Rentals, all owners who want to rent their unit now have a much more cost effective solution by a better, more established and successful company that let’s them keep 43% more money in their pockets.

• How can you all, as individual board members, even recommend that any owner waste 43% more of their money by using RML when there is a better alternative available to all owners who want to rent their unit at no cost and no risk to GGRC?
• How can you all, as individual board members, even recommend that RML be continued when it is clearly NOT in the best interests of GGRC and all owners when HALF of all HOA fees are going to feed the huge RML negative cash flow?
• How can you all, as individual board members, even recommend that RML be continued when you are wrongly charging at least 20 owners who do not use RML services – and still get charged pro rata for the massive cash flow loss of past years and even the first six months of 2011?

As a consequence, prudent management requires that RML be shut down immediately and certainly before the end of calendar year 2011 so that GGRC and all owners do not continue to hemorrhage massive losses from the bank account of GGRC and the pockets of all owners.

Every month of delay is costing GGRC nearly $10,000 right out of our bank account – and those funds are lost forever.  And, each month that goes by where more and more Deer Ridge owners give RML their 60 Day Termination Notice so they don’t have to pay the 43% higher fee – the negative cash flow for RML will skyrocket.

For every two dozen owners who are smart enough to change from RML to Cobbly Nob Rentals, RML will lose another $120,000 a year or more.

This would DOUBLE the current $10,000 a month negative cash flow to $20,000 a month – or nearly $250,000 a year LOSS from RML! 

As a result, any budget projections shown by Joe Thomas for RML for 2012 will be based on smoke and mirrors since he has no way of knowing how many of the 63 owners that started the summer with RML will stay with RML.  As I understand it, Cobbly Nob already has signed contracts or indications of intention from a DOZEN owners.

Are you going to DOUBLE everyone’s current assessment to cover this huge negative cash flow and keep us all in the motel business, no matter what?

What happens if or when three dozen or even four dozen owners are smart enough to keep that extra 43% in their pockets?

How much will you lose us between now and the inevitable end when you will have no choice but to shut down RML?

It is past time to shut down RML.  Shut it down!

On behalf of GGRC, I hereby demand that the individual board members vote during the November 11-12, 2011 budget board meeting to shut down RML before the end of 2011.  This presentment is to officially put each and every board member on notice that you are considered to be guilty of gross negligence and gross mismanagement by continuing to squander GGRC assets through your ongoing operation of RML.

As such, you may not be afforded any protection under the indemnification clauses of our Master Deed and Bylaws and may be held personally accountable for the repayment of these squandered funds.

Part of this shut down also includes firing Joe Thomas who is directly responsible for the abysmal results of RML for the past two decades.

GGRC does not need his services nor his exorbitant pay package that is significantly above market.  On behalf of GGRC, I hereby put all individual board members on notice that you are guilty of gross negligence and gross mismanagement by continuing to squander GGRC assets through your ongoing employment of Joe Thomas.

Cut ALL HOA Fees In Half

As the arithmetic shows, without RML and without the huge salary package of Joe Thomas, over half of our annual HOA fees could be cut so that ALL owners benefited from these reduced costs.

On behalf of GGRC, I hereby put all individual board members on notice that you are guilty of gross negligence and gross mismanagement by continuing to squander GGRC assets by overcharging all owners for their monthly and annual HOA fees and demand that the 2012 budget for GGRC properly reflect HOA fees that are HALF of the current amounts charged to ALL owners.

Insurance Escrow

It is clear that you all, as individual board members, have not established and maintained the required insurance escrow account that is mandated by the GGRC Master Deed.

To protect all owners, the Master Deed (see below) requires that all premiums are escrowed in a separate escrow account to ensure that the funds are available when the annual premium becomes due…and that the full amount of the premium is required to be totally escrowed at least 60 days prior to the due date of the annual insurance premium.

I am highly concerned that there has never been any attempt of any kind by Joe Thomas and the “board” for any owner to abide by this requirement since my purchase in 2005.

I am further concerned that all owners at Deer Ridge are not being afforded the economic protection provided by Article X Section 3 of the Master Deed. I believe there may not be any separate escrow account established and properly funded in accordance with Section 3 of Article X.

Since the annual insurance premium is substantive at approximately $50,000, my calculations show that approximately $5,000 should be escrowed each month so the amount of the account balance should be sufficient to pay the annual $50,000 sixty days prior to the due date as required by the Master Deed.

On behalf of GGRC, I hereby demand that the individual board members vote during the November 11-12, 2011 budget board meeting to form and fully fund this required insurance escrow before the end of November 2011.

This presentment is to officially put each and every board member on notice that you are considered to be guilty of gross negligence and gross mismanagement by continuing to jeopardize GGRC assets through your ongoing violation of the above insurance article of our Master Deed.

Likewise, as required by the above section, I hereby demand on behalf of GGRC that the 2012 budget and payment schedule required of each owner reflect that a separate payment be made by all owners that is properly written for direct deposit into this separate and dedicated insurance escrow account.

Discrimination Against Resident Owners

We believe that Joe Thomas and some, or all, “board members” have conspired to discriminate in both overt and subtle ways against resident owners and others who do not use the motel services of RML.

These include:

• Instructing and rewarding certain “guests” to intentionally make as much noise as possible in units directly above a resident owner’s unit.  We know as a fact that this has happened numerous times and intend on requiring current employees to provide their depositions and/or sworn interrogatories with regard to their knowledge and participation in said harassment as well as having our attorney contact those “guests” who were present during those times of intentional noise harassment.  We believe that neither employees or past guests will risk the consequences of perjury to protect known instigators of this activity.
• Limiting the use and contents of owner’s balconies and landings in ways that are clearly aimed at resident owner’s use as differentiated from balcony and walkway landing use and needs of tourists who only stay a few days.
• Limiting the use of the common area parking lot in ways that are clearly aimed at resident owner’s use as differentiated from parking lot use and needs of tourists who only stay a few days.
• Interfering with, or delaying, mail delivery.
• Attempting to control property sales to only those new owners who indicate a willingness to use the motel services of RML.
• Requiring resident owners to notify the office if they are going to be absent from their own unit for even one night.
• Interfering with the use of common areas by resident owners and their guests.
• Etc.

On behalf of GGRC, I hereby demand that the individual board members immediately take whatever steps are necessary to stop the ongoing harassment and attempted intimidation of all resident owners and to ensure that it never happens again.

Court Appointed Receiver To Take Over All Operations And Decisions Regarding GGRC, RML and Deer Ridge Mountain Resort

If the above demands are not met during the November 11-12, 2011 board meeting, we intend to file emergency motions with the Court during our scheduled hearing on December 9, 2011.

• The first will be to require that all monies be paid to the Court by GGRC that are supposed to be in a separate escrow account for the property insurance that equals approximately $50,000 a year.  Our Master Deed requires this separate escrow account to protect all owners.  Our “board” has chosen to ignore this part, and so many other parts, of our GGRC documents, with the result that they have put all owners at significant risk.  By requiring the funds to be paid into the Court, these monies can be protected.

• An emergency motion for the Court to appoint a receiver to take over all management and control of GGRC.  The “board” continues to keep our HOA in the money losing motel business.  According to their own board meeting meetings in August 2011, they were forced to admit that they lost over $58,000 of OUR money during just the first six months of 2011.  This is money that is gone forever from our GGRC reserves.  This amounts to almost $120,000 a year.  On top of this, they are trying to fool all owners by wrongly allocating an additional $16,000 a year in RML expenses by showing them to be GGRC expenses.  If all cost accounting were done properly, RML would be shown to lose over $150,000 a year – or more than HALF of our HOA fees that all owners pay to GGRC each month.  I successfully found a better management company for all owners who want to rent their unit.  RML charges 43% more than Cobbly Nob Rentals – so there is no need for RML by any owner.  Since the “board” is unwilling to shut down RML, and continues to mismanage and negligently operate GGRC, we will immediately seek that a court appointed receiver take over all operations – and remove all decision making from Joe Thomas and every member of the “board.”  If we don’t do this, GGRC is at significant risk of being forced into bankruptcy.

These are just two of the additional motions we intend to aggressively pursue in court on December 9th.

Additionally, if the “board” tries to implement ANY changes to the rules and regulations that are deemed to be discriminatory against resident owners, including new limitations regarding balcony use or the like, we will also document this ongoing and flagrant pattern of discrimination before the Court.

It is our strong belief that the Court will take into account the many ways that the current “board” is both blatantly ignoring the governing documents of Deer Ridge and GGRC and creating the financial peril that has resulted from the board’s continued operation of its motel business through RML.

As a consequence, we are confident that the Judge will agree with our motion that a court appointed receiver immediately take over ALL decision making for GGRC – including shutting down RML and making all books and records required by the Tennessee Horizontal Property Act available to ALL owners who want to see exactly what has been happening on this property for the past decade.

Updated Derivative Action Lawsuit

In addition, this document is presentment of these issues on behalf of GGRC to all individual board members.  It is our intention to incorporate these demands, including the discrimination against resident owners, in our updated derivative action lawsuit against Joe Thomas and each individual board member.

We expect this updated derivative action, showing at least SEVEN Deer Ridge owners as co-plaintiffs, to be filed with the Court in the very near term.

You Have Been Warned

Individual board members, you have been warned.  Govern yourselves accordingly as an individual who can be held individually liable for both gross mismanagement and gross negligence.

On behalf of GGRC,

Robert Goodman, Owner
———————————–

Legalese On

GENERAL DISCLAIMER FOR ALL PAGES AND POSTS AND EVERYTHING ELSE I DO OR SAY REGARDING DEER RIDGE AND ANY AND ALL RELATED PARTIES:

Note: This email, and the information on any and all other posts and pages by me about General Manager Joe Thomas, GGRC, RML and /or the Board of Directors and its members, or any related topics, are my personal opinions based on my ongoing investigation into the actions and inactions of the GGRC and RML Board of Directors and / or Joe Thomas, General Manager.

While I believe these allegations to be true based on my objective analysis, these opinions remain as only allegations until I, or others, prove things in court.

My goal is to offer all owners all the information and evidence that I have available so that everyone can reach their own conclusions.

Please note the obvious:

Everything I ever say or write in person, via emails, or on my blog, about Deer Ridge or any and all related entities and organizations or any and all affiliated personnel or owners, is strictly my own personal opinion of course – based, in part, from my owning a unit at Deer Ridge for over five years – and on my own personal history.

That history includes earning a Presidential MBA degree, being awarded a Bachelor of Science, With Honors, in Engineering Physics from UT, working for NASA as a rocket scientist at Marshall Space Flight Center, 30 years of CEO experience directly employing and managing many hundreds of people at multiple companies I personally started and operated (including one that I took public), 15 years experience buying and selling over $100 million of property and managing more than 45,000 rental units – AND being able to read and do four-function arithmetic.

Legalese – And Powered Wig – Off

Two Major Issues To Be Decided During December 9, 2011 Court Date

We have a scheduled court date one month from today on December 9, 2011 – that could change everything at Deer Ridge.

On May 25, 2011, I filed a motion for a partial summary judgement against GGRC and the individual “board” members in response to their lawsuit against me for non-payment of the Asinine Assessment.

My motion for partial summary judgment contends that this was a $353,500 “special assessment” that illegitimately required owners to pay the wrong amounts – and to pay for improvements that had not been properly approved.

If I win on just these two points, it will have a massive, permanent impact on the way things are done at Deer Ridge Mountain Resort.

• It could mean that the special assessment may be rescinded in full by the Judge – or that everyone’s payment amount has to be recalculated – including requiring the “board” to return part or all of the payments made by some or all owners.
• It could mean that the individual board members may be held personally liable to repay over $200,000 that were paid on improperly approved alterations and improvements.

If you click on the below image, you can download and read the full 17 page motion to see our major points of issue.

Why A Partial Summary Judgment?

As you can see from the motion, all we are requiring is that the Judge simply read the GGRC Master Deed and Bylaws and rule on his interpretation of these documents.  There is no testimony that is needed – just an interpretation of the documents.

It is my belief that our Master Deed and Bylaws are crystal clear:

• That they require a very specific formula for pro rating all assessments, both monthly and special, that are dependent on the size condo you own at Deer Ridge.  It is our contention that the “board” continues to violate the governing documents for Deer Ridge by charging the wrong amounts for all monthly assessments and for any special assessments.  Based on my calculations, all 30 of the owners who own a 1-1 unit at Deer Ridge are being overcharged by 82%!
• That ALL improvements and alterations, irrespective of cost, require BOTH a 75% positive vote of all owners AND a 90% positive vote of all mortgagees. It is our contention that the 75% vote has been rarely done – and that the 90% has NEVER been done.  If this is ruled in our favor, this means that the “board” acted ultra vires – which means that they knowingly spent a huge amount of OUR money without the proper approvals – which subjects them to potential liability to repay GGRC these monies.

All we are requesting with this motion for partial summary judgment is that the Judge read the 89 page GGRC documents and rule based on his interpretation.

Our hope is that he will quickly see that our interpretations are the only ones that make any sense – and not the contrived, illogical and stretched interpretations that the “board” has depended on for so many years.

If we lose on the motion for partial summary judgment, we have several other defenses that we will use in the trial – defenses that require evidence and testimony that are not allowed for summary judgement but are allowed in trial.  However, we are highly confident that the Judge, upon reading our Master Deed and Bylaws, will rule in favor of our interpretations.

Get Ready For A “Run On The Bank” If We Win This Partial Summary Judgment On Voiding The Special Assessment

If we win just one of the two major defenses in this partial summary judgment AND win this one part of our ongoing lawsuit, it may possibly have the effect of negating the “special assessment” for everyone – especially those who push the issue in Court like we have.

The problem for the “board” is that they and Joey have already spent your money!

In our case, we already have our money – because we were smart enough to not pay it to them in the first place.  For all owners who have paid, if we win even one of the two points, I would recommend that you hurry up and get in line to get your money back as soon as you can.

Note: I am NOT an attorney and do not give legal advice. Ever.  Period.

However, from a business perspective, I would strongly advise you try and get your special assessment back ASAP.

You might consider taking the above 17 page document to your own attorney and have them use this as the basis of your own lawsuit against GGRC and the board for recovering your own two payments made on the “special assessment.”  By using our document as a starting point, you might be able to save yourself some legal fees.

The other, derivative impact will be an immediate, required change to the monthly assessments that all owners pay to GGRC each month.

Repayment of $200,000 By Board Members As Individuals

If we win on the 90% mortgagee issue on this motion for partial summary judgement, it is my hope that this will make the individual board members personally responsible to repay the more than $92,000 (26% of the total “special assessment”) that was illegitimately spent on the walkways and lighting improvements and alterations since their actions were ultra vires.

Of course, this partial summary judgement ruling will just deal with the $92,000 of illegitimate Article XII funds that have been spent without proper authority. Based on my initial analysis of several expenditures made by the board, I calculate that all illegitimate Article XII funds spent already exceeds $200,000.  These are monies that required a 75% vote of ALL owners AND the vote of 90% of ALL the mortgage holders for all mortgages at Deer Ridge.

My personal goal if we win on this 75% / 90% issue is to force the individual board members to repay ALL $200,000 back to GGRC along with interest, etc. with our derivative action part of our countersuit.

While We Are In Court – Other Motions May Also Get Decided

Since my attorney and I will already be there, we intend to present other motions before the Judge:

• An emergency motion for the Court to require all monies be paid to the Court by GGRC that are supposed to be in a separate escrow account for the property insurance that equals approximately $45,000 a year.  Our Master Deed requires this separate escrow account to protect all owners.  Our “board” has chosen to ignore this part, and so many other parts, of our GGRC documents, with the result that they have put all owners at significant risk.  By requiring the funds to be paid into the Court, these monies can be protected.
• An emergency motion for the Court to appoint a receiver to take over all management and control of GGRC.  The “board” continues to keep our HOA in the money losing motel business.  According to their own board meeting meetings in August 2011, they were forced to admit that they lost over $58,000 of OUR money during just the first six months of 2011.  This is money that is gone forever from our GGRC reserves.  This amounts to almost $120,000 a year.  On top of this, they are trying to fool all owners by wrongly allocating an additional $16,000 a year in RML expenses by showing them to be GGRC expenses.  If all cost accounting were done properly, RML would be shown to lose over $150,000 a year – or more than HALF of our HOA fees that all owners pay to GGRC each month.  I successfully found a better management company for all owners who want to rent their unit.  RML charges 43% more than Cobbly Nob Rentals – so there is no need for RML by any owner.  Since the “board” is unwilling to shut down RML, and continues to mismanage and negligently operate GGRC, we will immediately seek that a court appointed receiver take over all operations – and remove all decision making from Joe Thomas and every member of the “board.”  If we don’t do this, GGRC is at significant risk of being forced into bankruptcy.

These are just two of the additional motions we intend to aggressively pursue in court on December 9th.  Additionally, if the “board” tries to implement ANY changes to the rules and regulations regarding balcony use or the like that are discriminatory toward resident owners, we will also aggressively challenge the “board” by showing an ongoing and flagrant pattern of discrimination.

In addition to all of the above, our attorney is currently working on additional, new filings with regard to derivation action against ALL “board” members, deceptive trade practices by Joe Thomas and other actions that are anticipated in the very near future….including SIX more Deer Ridge Owners joining our lawsuit against Joe Thomas and all “board” members.

We Live In Interesting Times!

Stay tuned….we may be seeing paradigm shifts in the way things have been done for many years at Deer Ridge.  And justice may start December 9, 2011.

What part of Article XII of the Master Deed of GGRC, Deer Ridge Mountain Resort, is so hard to understand?

Once again Joe Thomas and the “board” have chosen to either play dumb – or more probably just say, “Screw you!” to the other owners at Deer Ridge.

Case in point:

I do not recall a vote for 75% of owners for the improvement / alteration for the replacement of the existing sliding glass door with this french doorway with digital locking mechanism that now goes into the pool area of the recreation area.

No matter what the cost or the reasonableness of the change, ANY alteration or improvement, requires both a 75% vote of ALL owners AND a 90% affirmative vote of all mortgage holders at Deer Ridge.  That is the law of our regime.  See for yourself:

This is on Page 16 and 17 of the GGRC Master Deed. This IS the law of OUR land.

Seriously, assuming the reader does not have a room temperature IQ, how hard is this to understand???

Once again, Joe Thomas and the “board” have refused to comply with the governing documents of Deer Ridge and have once again committed ultra vires acts in violation of their scope of duties as board members.

This adds to the already large $200,000 in other ultra vires acts Joe Thomas and the “board” have committed.  When are these jokers in this Gang of Six going to stop illegitimately spending OUR money?

These guys were finally forced to have to go for the Article XII vote for the walkway railings alteration – so you know they know about this requirement and have acknowledged this knowledge by that required 75% vote.*  So, Joey and the Gang can’t claim total stupidity here on the french door.  I believe it is clear to God and everyone that the french door is also an “alteration.”

So, I guess we add this under the “Screw You, Owners – We Are The Board And Are In The Driver’s Seat And Will Damn Well Do What We Want No Matter Whether It Is Legal” file for upcoming litigation.

It is past time that we hold these “board” members personally financially responsible to repay to GGRC the more than $200,000 that has been illegitimately spent by this Gang of Six.

In the meantime, I invite all Deer Ridge Owners to join together to give Joe Thomas and the “board” remedial reading lessons so they finally understand what our Master Deed and Bylaws say.

*  Note:  The “board” did even screw up the walkway railing vote by not getting the REQUIRED 90% vote from all mortgage holders…claiming they were too stupid to understand the above yellow-highlighted section.

Below is a copy of an email that was sent to Joe Thomas and the “board” at Deer Ridge Mountain Resort.

We believe that Joe Thomas continues his attempted harassment, intimidation and discrimination against any and all resident owners at Deer Ridge who in any way reduces his income from the illegitimate RML motel rental activities.

Judge For Yourself

To:         Joe Thomas and “Board”
Re:         Two Letters Regarding Our Handling Of Noisy, Obnoxious Tourists

We received your specious letters of August 5, 2011 and August 24, 2011 complaining about my approach to handling noisy, obnoxious tourists who stay in Unit A-302 at Deer Ridge Mountain Resort.

Neither of your letters are worth my time to point out the countless factual errors and false allegations and spurious assertions that have zero merit…but let me clarify some points for you and the “board” that pertain to this subject:

• I view these letters for what they are:  part of an ongoing pattern of attempted harassment and intimidation by you and the “board” in order to continue your discrimination against any and all resident owners at Deer Ridge who in any way reduces your income from the illegitimate RML motel rental activities.
• We have been told by four tourists in the past six weeks that you are offering a “reward”, incentive or other kinds of compensation in exchange for those tourists generating a positive, glowing report on their stay at Deer Ridge.  Besides the clear lack of any ethical moral compass in your even attempting to bribe tourists to give these glowing reports, it strongly emphasizes what I personally believe to be fact:  That you continue to flood travel sites with these kinds of bogus reports in order to bury the many negative reports that honest tourists file regarding their stay at Deer Ridge.
• Likewise, because of what we see as proof of your tourist report manipulation, we believe that the one that you included in the August 5th letter could have been equally manipulated to misrepresent the truth in order to harass me as a resident owner.  I even find that the wording of the tourist complaint smacks of being coached for compensation.
• I do continue to note that when the property is almost completely vacant, all the tourists seem to be magically clustered in the A Building, based on parking hangers in the windshields…whereas almost all of C and D Buildings are completely vacant.
• Once we get the books and records, we plan on investigating the statistical spreads of rental nights to see if there is, indeed, a pattern of dumping as many tourists as possible in units close to resident owners. If this is, indeed, being done, it is not only more proof of ongoing discrimination against resident owners…but it is also robbing owners in the C and D Buildings of their proportionate share of rental income.
• We have also been told by three recent tourists that stayed in Unit A-302 that they knew we were owners. We find this highly suspicious since there is nothing whatsoever on our door that indicates in any way that we are owners.  Hence, the only way these tourists could have known that fact was that they were told that during some kind of discussion with the office staff or with you.  Besides the obvious increased risk factors to us and the safety of our home created by this kind of inappropriate disclosure, we see this as signs of yet more slander and discrimination against resident owners.
• This further supports our strong suspicion that you are willfully and intentionally placing tourists above us who may be instructed, and rewarded, to be especially obnoxious when it comes to being noisy.  This would be consistent with what we have been told by prior resident owners here at Deer Ridge that were equally convinced of your attempted harassment and intimidation in order to discriminate against any and all resident owners.

Additionally, we are not constrained by your methodology to deal with obnoxious tourist behavior.

• Your “quiet hours” are only a subset of our quiet hours.  As a disabled, senior citizen who is home most of the time, my quiet hours are more extensive.  As such, I am investigating my legal rights under federal and state fair housing laws that prohibit any discrimination against the disabled and the elderly by you and the “board.”
• In fact, I have the legal right to the peaceful and quiet enjoyment of my home ALL the time.
• We find that the tourists at Deer Ridge pretty much follow the usual 80%/20% rule.  80% of the tourists are considerate and accommodating once we let them know that the foot fall problem is so bad here due to design issues of the entire property.
• We find that knocking on the ceiling once or twice is usually sufficient for reasonable parents to keep their kids from running and jumping around in A-302.
• Other times, we find that giving them the one page note that you found so objectionable solves the problem.  (Since you erroneously consider it a “sign” that somehow violates the Master Deed and Bylaws, we will either hand it to them directly or leave it as a letter in an envelope for them.  Frankly, this same note should be framed and hung in every rental property so that tourists understand the problem since so many complaints regarding foot fall noise have been listed on Trip Advisors, Expedia, etc.)
• When the above does not work, I will continue to pound harder and more frequently on our ceiling and I will be forced to increase my direct confrontations with these obnoxious, inconsiderate tourists as I see fit in my sole discretion within the legal constraints of local and state law.
• Since you find my one page note so objectionable, I will, from now on, immediately call the Pittman Center Police Department for help in cases of someone as objectionable as the tourist mentioned in your August 5th letter.
• We have never benefited from any noise relief by calling the office and will not waste our time with that approach any more.  We have received immense help and support on Deer Ridge noise problems with the Pittman Center Police.
• Our objections to noise are not solely focused on tourists.  As you know, there is another resident in our building who is notorious for noise and a blaring radio on her balcony.  When other approaches would not work, I finally called the Pittman Police Department on May 24th.  I had recorded the incident on video and the police officer graciously heard our complaint and immediately dealt with this owner.  In the nearly 100 days since the police call, there has been zero noise problem from this other owner.  If she causes a problem again, even once, we will not hesitate to immediately call the police again, including filing a complaint for prosecution.  (You are welcome to view the filed police report if you wish.)
• The police officer made it clear that it is part of his job to deal with noise issues at Deer Ridge and urged us to immediately call regarding ANY noise problems we have at this property.
• As a consequence, from now on, if we ever have another obnoxious tourist above us who does not immediately cease and desist their noise causing activities, I will once again call the Pittman Center Police Department.
• Likewise, if you EVER rent to a group who hires a band to play in the pavilion again, we will immediately call the Pittman Center Police Department.  We don’t care how many drunken golfers you may have rented units to.  We don’t care what you may deem to be quiet hours. We don’t care how much money you or RML make from the pavilion rental. It will never be tolerated again.
• Whether you like it or not, the above is OUR legal and legitimate methodology for dealing with noise issues at Deer Ridge.

I hereby demand that you and the “board” immediately:

• Stop any and all harassment of any and all resident owners at Deer Ridge.
• Stop trying to unethically manipulate reviews of Deer Ridge.
• Stop any and all slander of us or other resident owners to tourists.  No tourist has any need to know who is an owner here.

We also demand that you stop any intentionally noisy or potentially noisy tourists from staying in Unit A-302.  With all the vacancies at Deer Ridge, it is easy enough to direct them to units above empty condos.

After all, I doubt you want to have a police officer, with uniform, badge and gun, show up knocking on doors at Deer Ridge – or showing up at some drunken party at the pavilion.

Who knows what kind of reviews those kinds of confrontations might generate?

Joe, now that you know MY methodology on noise control, and MY approach to ensure that I have peace and quiet in my own home, I hope you will begin to govern yourself accordingly.

And, if you can’t seem to control yourself, I hope that the “board” will help you understand the implications of all of the above.

cc:  Deer Ridge Owners Blog

PS:  Naturally, all of the above is my own personal opinion.  Please see disclaimer below.

———————————–

Legalese On

GENERAL DISCLAIMER FOR ALL PAGES AND POSTS AND EVERYTHING ELSE I DO OR SAY REGARDING DEER RIDGE AND ANY AND ALL RELATED PARTIES:

Note: This email, and the information on any and all other posts and pages by me about General Manager Joe Thomas, GGRC, RML and /or the Board of Directors and its members, or any related topics, are my personal opinions based on my ongoing investigation into the actions and inactions of the GGRC and RML Board of Directors and / or Joe Thomas, General Manager.

While I believe these allegations to be true based on my objective analysis, these opinions remain as only allegations until I, or others, prove things in court.

My goal is to offer all owners all the information and evidence that I have available so that everyone can reach their own conclusions.

Please note the obvious:

Everything I ever say or write in person, via emails, or on my blog, about Deer Ridge or any and all related entities and organizations or any and all affiliated personnel or owners, is strictly my own personal opinion of course – based, in part, from my owning a unit at Deer Ridge for over five years – and on my own personal history.

That history includes earning a Presidential MBA degree, being awarded a Bachelor of Science, With Honors, in Engineering Physics from UT, working for NASA as a rocket scientist at Marshall Space Flight Center, 30 years of CEO experience directly employing and managing many hundreds of people at multiple companies I personally started and operated (including one that I took public), 15 years experience buying and selling over $100 million of property and managing more than 45,000 rental units – AND being able to read and do four-function arithmetic.

Legalese – And Powered Wig – Off

::: FLASH NEWS :::

Six additional Deer Ridge owners have joined as co-plaintiffs in the $3 million lawsuit that was previously filed against general manager Joe Thomas and all five current “board” members Luther Parker, Larry Ohm, David Barone, Margie Duncan and Tom Reise.

Other Deer Ridge owners are expected to also become co-plaintiffs in the coming weeks as opposition continues to grow against:

1. The illegitimate stonewalling by the board at blocking all access to the Administrator’s Book that is required by the Tennessee Horizontal Property Act.
2. The gross mismanagement of the property and GGRC that makes our $400- $500 monthly HOA fees the highest per sq ft in the entire area and making our condos unsaleable – this is even before the probable $70 a month increase that may be implemented this November.
3. The gross negligence at forcing our HOA to remain in the motel business in spite of massive, real losses that have cost GGRC and ALL owners millions of dollars over the past decades.
4. The contemptuous violations of both Tennessee state law and the governing documents of our HOA including the board members’ illegitimate ultra vires expenditures exceeding $200,000.
5. The ongoing 82%, monthly HOA fee overcharge of all 1-1 owners.

If you, as an owner at Deer Ridge, object to these five points, you should also join other owners as a co-plaintiff to stop this HOA Board Abuse.  See details below.

The David Barone Lie

In the minutes of the recent board meeting and annual meeting, David Barone lied to all owners when he claimed that the Judge dismissed our lawsuit against GGRC, Joe Thomas and all the individual board members.

The judge did NOT dismiss the lawsuit…but he did rule that we were required to either make all owners a party to the lawsuit, i.e., sue all owners, or to get 5% of the voting shares to join with us as a co-plaintiff so that we would qualify as a derivative action suit…once this was done, the Judge indicated that he would rule on the declaratory motions for summary judgment that we have filed.  These include our request for a ruling that RML is illegitimate and squandering half of each month’s HOA fees every month for every owner and, as such, should be immediately shut down or sold.

Because of the actions and objections filed by the “board”, we didn’t have any choice but to immediately have more owners join my lawsuit as co-plaintiffs to get us to a total of at least 8 votes out of the 154 available votes in GGRC in order to meet the requirements of a derivative action suit against the individual board members for their violations of the Master Deed and Bylaws and Tennessee state law.

The Derivative Action Against All Board Members

During the court hearing on April 26, 2011, the Judge postponed hearing on our motions for summary judgment until such time that we were able to show that at least 5% of the owners at Deer Ridge were parties to the lawsuit.

With our current and growing list of other owners willing to stand up and be counted against the HOA Board Abuse that has been going on for years at Deer Ridge, we now meet and exceed this judicial requirement.

We already have 11 votes – and the list is growing.  With this 11 votes, we already have more votes than we need.

The Magnificent Seven

There are now SEVEN Deer Ridge owners that will be suing Joe Thomas and the rest of the Gang of Six.

This Gang can no longer continue their propaganda of misinformation that there is just one “crackpot” out of all the owners who objects to the way things are done.  There are now seven “crackpots” who recognize that the ONLY way things will ever improve at Deer Ridge is to get rid of RML, get out of the motel business that is bankrupting GGRC, get rid of the current “board” and find board members who are willing to abide by Tennessee state law and the GGRC Master Deed and Bylaws.

The “Magnificent Seven” – the seven current co-plaintiffs represent nearly 11 votes or more than 7% of the voting constituency of GGRC and, as such, exceed the required 5% needed to pursue the derivative action against all board members, individually.

As such, we plan on amending our motions to immediately and aggressively continue our pursuit of our current motions for summary judgment as part of our derivative action.

Did You Want To FINALLY See The REAL GGRC Books and Records?

Did you want a copy of all the GGRC and RML books and records it’s taken me six years to get?

Well, good luck with that if you try to do it yourself.

Joey and the Board, in their ongoing attempts to block owner access to the REAL books and records, got the Judge to temporarily agree to a protective order. (The harder the Gang of Six resists releasing the state required Administrator’s Book, the more suspicious it is about what they are trying so desperately to hide.)

With the protective order, you as an owner at Deer Ridge still won’t be able to see ANY of the books and records, email correspondence, payroll information and other information about your property, your investment or your HOA that I am able to uncover with my lawsuit.  As of now, I won’t be able to even talk about it here on this blog.

We expect to file a new motion to allow us to release this information to all owners – but for right now, Joey and the Gang are doing all they can to make sure other owners can’t see what we are forcing them to show us.

(This should be a HUGE red flag to ALL owners that something is NOT right at Deer Ridge with its books and records.)

However, there is ONE way for YOU to get around the Gang’s protective order:  Join with us as a co-plaintiff in the lawsuit.

As a co-plaintiff with us in our lawsuit against Joe Thomas, Luther Parker, Larry Ohm, David Barone, Margie Duncan and Tom Reise, you will get to see EVERYTHING that I get to see with our court ordered production of documents.

Remember, it is these six individuals posing as board members who are explicitly and deliberately blocking YOU from your rights to see these documents and the books and records on YOUR investment at Deer Ridge.

Don’t tolerate the injustices of the Gang of Six.  Become a Magnificent Co-Plaintiff with the seven of us – and gain FULL access to ALL the documents and books and records of Deer Ridge.

If you are a Magnificent Co-Plaintiff, there is nothing that the Gang of Six can do to stop you.

Become Magnificent Too – Join The Seven As A Co-Plaintiff To Fight The Gang of Six

Would you like to help stop RML from squandering half of our monthly HOA fee?

Would you like to be able to finally see the REAL books and records of Deer Ridge?

Just click Co-Plaintiff – or the image to the right – to download the one page document drafted by our attorney to join the litigation as a co-plaintiff so we can finally get these critical Deer Ridge issues resolved. As you will see, there is no cost obligation to you – unless you want to consult directly with the attorney for some reason.

If this sounds good to you, please complete the form and fax, email or mail me the completed document. Also, if you know of any other owners who would be willing to sign the attached, please forward it to them.

Together, we can finally hold this Gang of Six individually accountable for their multitude of illegitimate violations of our Master Deed and Bylaws – stop the massive negative cash flow from being in the motel business – and keep this Gang of Six from forcing GGRC into bankruptcy.

There has been a long running list of discriminatory acts at Deer Ridge by Joe Thomas and the “board” against owners who reside full time in their own units.

The underlying cause of this is clear:  The Gang of Six (Joe Thomas + Five “board” members) is doing whatever they can, irrespective of our Master Deed and Bylaws, to keep us in the motel business no matter how much it costs ALL owners to feed their huge negative cash flow.  The Gang is determined to keep “Little Joe’s Notel Motel And Mountain Resort” operating – even if it drives GGRC into bankruptcy.

Since that is their main goal, any owner who does not use RML, with their rip-off rate of 50% management fees, is considered the enemy.  So, their agenda seems to be to run off anyone who occupies their unit and interferes with their motel business.  With RML barely hanging on by a thread, even gaining one more unit might be pivotal.  Even if that means trying to force resident owners to sell in frustration from all of the harassment.

One Smoking Gun:  The Board Minutes of April 2004

If you have any doubts that this RML focus is the prevailing mindset of the power elite and Joe Thomas, I invite you to click BOD Meeting 043004 to download a complete copy of the minutes from that “board” meeting.  What you will find on page 3 is the following:

Maybe it is just me – but that sure looks like it is clearly the intent of the board at that time, along with its general manager Joe Thomas, to illegitimately gerrymander prospective buyers of all condos for sale at Deer Ridge.

If anything, my guess is that the Gang of Six is even more desperate now, seven years later, to get this property so every unit is a rental unit.  And, by definition, if it is a resident owner unit, it cannot be a rental unit.

Notice they want to research “the legal limits” of not allowing any “future units being sold to become non-rental units.”  This means to me that they don’t mind getting into some very gray areas of enforcing this issue even beyond black and white legal limits.

(Note:  this should also be a major red flag if YOU are one of the 19 out of 84 units (23% of all Deer Ridge units) currently for sale through Joe Thomas and Ridge Resort Realty.  Be sure and read how Joe may not have your best interests at heart and may be ignoring interested buyers who may want to be resident owners since it would negatively impact him and RML!

Read “Smoking Gun: Board Minutes Show Intent To Block Sales To Non-RML Buyers“)

We believe this “gray area” beyond “the legal limits” to turn all of Deer Ridge into a “rental property only” has continued to be aggressively pursued by Joe Thomas and the Gang to this day.

Board Minutes of April 2011

During the last “board meeting” in April 2011, the Gang of Six instituted changes to the Rules and Regulations that directly discriminate against resident owners at Deer Ridge.

Notice the yellow-highlighted areas.

• There is NO need whatsoever for resident owners to notify the office that they will be away overnight.  This is a gross invasion of privacy and does not effect the office or its operation whatsoever.  They already have an emergency number.  We have lived in many condos during the past several decades and NONE of them EVER required anything of the sort by resident owners.  We see this requirement as a major security issue.  If the office and other personnel know that we are gone for X number of days and nights, along with the office having a key to our condo, this opens up multiple, potential opportunities for break-ins and other nefarious acts such as theft, vandalism, etc.  Plus, we have documented proof of Joe Thomas and RML renting OUR unit when there was NO rental agreement whatsoever.  Could it be that Joey wants this advanced notice for more of that kind of illegitimate nonsense? We see the Gang’s insistence on this as a despicable interference with our quiet enjoyment of our own home and will NOT provide them prior notice of any of our travel plans.
• This parking requirement for no more than two vehicles was clearly aimed at one resident owner who happens to have two cars and three motorbikes.  This owner only took up three parking spaces with all of these vehicles at one of the far ends of the property.  We see this as more evidence of an ongoing pattern of discriminatory behavior against resident owners.  We often see tourists here who have more than two vehicles per unit.
• Note that Item 5 also says it OK for small motorcycle trailers and small RVs to be here for 14 days.  Clearly, this is more discrimination.  What difference is there if Tourist A is here for a week or two with the above and then Tourist B shows up with the same above vehicles, then Tourist C, etc.  I think you see my point.  It is OK for tourists who support RML to do things that are NOT allowed by resident owners!
• Item 6 says no vehicle maintenance which means I can’t even clean my windshields or fill my windshield washer reserve without violating this far reaching and ambiguous section of the Gang of Six’s Rules and Regs? What about jump starting a dead battery?  What’s interesting is that an employee had to work on their car in the parking lot during the past month.  Plus, we see tourists having to work on their cars often – especially with the drop in the tourist social-economic profile during the past year (a LOT of this year’s tourists don’t use suitcases – they use trash bags for their belongings.)
• Item 10 has been used against resident owners by Joey claiming that guests of owners cannot be in the pool since they are not registered RML guests.  This again is clear discrimination.  Joey claims that the owner must be present for owner’s guests to use the facilities.  Really, Joe?  What difference is there if I offer my unit to my sister to use and she wants to use the pool – versus an owner using RML and those tourists using the pool?  Besides, we already have all of those non owner cabin tourists using our facilities for free, increasing wear and tear that all owners have to pay for…just so RML can stay in the motel business.

I believe all of the above clearly shows a pattern of intentional discrimination against resident owners.

But, wait!  There’s more.

Future Attempted Changes To the Rules And Regs – For More Discrimination Against Resident Owners

During the same April 2011 board meeting, the minutes reflect even more onerous discrimination.  This is an excerpt from those minutes:

Clearly, there are FOUR types of owners – all of whom have property rights – irrespective of the Gang’s gray area discrimination attempts to turn all of Deer Ridge into a 100% rental property for the RML motel business.

A key element of this discussion is to try and impose rules that will constrain resident owners that won’t have any real impact on the tourist trade.  For example, the constraints on the use of your own balcony.  This includes last year’s discussion about prohibiting even small stacks of firewood on the balconies.  Obviously, tourists would not use a balcony the same way a resident owner would, including the need for firewood for more than a few nights stay.

That having been said, we see tourists leave all sorts of stuff all over the balconies where nothing is done about it.  This includes firewood, coolers, boxes, wet clothes hanging over the railing, bicycles, large air mattresses, rafts, large inner tubes, etc.

These tourists rarely if ever get hassled by Joe and RML over this stuff since the average stay is only a couple of nights.  The issue, like the ones mentioned above, is that Tourist A does this, then Tourist B, then Tourist C and so forth.  So, for resident owners we are barraged with significantly more eye sores than Joey and the Gang want to allow for us.

Clearly, another strong indication of a pattern on ongoing discrimination.

Lastly, David Barone seems to be harping on “No Commercial or business activity..” is allowed.   Many leases and HOAs have similar constraints.  These have been interpreted by the courts to mean business and commercial activity that are outside of residential zoning constraints and generally mean those kinds of enterprises that have a customer on site requirement which impacts traffic and parking.

David Barone would have you think that it means that NO business activity can be carried out in any Deer Ridge unit.  This would mean that you could not even make a business call or check your business email while you are at Deer Ridge.  Really, David?  You REALLY want to try to pursue this rabbit trail?  Bring it on!

Next?

Those are just the cards that Joey and the board have shown so far as either direct or indirect attempts at discrimination and intimidation of resident owners in their ongoing efforts to keep GGRC in the motel business.

I, for one, will not tolerate anything of the kind.  As a consequence, we are already looking at incorporating this ongoing pattern of discrimination into our current lawsuit against the individual board members.  Part of our current lawsuit is to force us out of the motel business and to shut down the illegitimately formed RML  If we need to also take immediate, legal steps to stop this discrimination until RML is shut down, we will.

It is way past time for Joe Thomas and the Gang to understand that Deer Ridge was NEVER intended to be a 100% rental property – and nothing in the Bylaws and Master Deed allow their “gray” attempts to circumvent the ruling documents of GGRC.

We’ve heard many owners tell us that they plan on making Deer Ridge their full time home when they retire.  We are doing all we can to help make sure that you, too, won’t suffer this kind of ongoing resident owner discrimination.

I assume most of you already know that the “board” just had an emergency meeting – scrambling to cover GGRC’s cash flow problems produced by RML’s ongoing massive cash hemorrhage caused by us continuing to be in the motel business.

During this unannounced and secret meeting, the “board” raised the management fee from the going market rate of 40% to a whopping 50%!

This represents a 25% increase in the management fee currently being paid by Deer Ridge owners who use RML.  This means that if your unit generates $10,000 a year in gross rentals, using RML will now cost you an ADDITIONAL $1,000 a year in management fees.

Hey, we all have got to somehow cover the 10% raise the “board” awarded to Joey earlier this year…irrespective that he was already being paid over THREE TIMES the going rate for his skill sets and responsibilities for this sized property in the Gatlinburg area.

By my calculations, over TWO THIRDS of the annual RML negative cash flow of $152,000 goes to pay all the approved salaries, perqs and benefits that end up in the pockets of Joe Thomas.

Another Negative Review On Trip Advisor

In spite of the raise, in spite of the triple rate pay, it is my professional opinion that Joe Thomas should be immediately fired, for cause, as a result of the many examples of gross incompetence and gross mismanagement cited throughout this web site.

Want to see what your 50% management fee gets you through RML?

Here’s a typical negative review that is the latest Deer Ridge posting on Trip Advisor:

This is just one of the bad reviews.  Click Deer Ridge Reviews to see several other examples of how RML is viewed by many of the tourists who stay here.

You never hear about all of these bad reviews during the “annual meeting” or in the propaganda sent out by the office to all owners.  But we hear this stuff all the time as we walk around the property.

Is this what you want tourists saying about Deer Ridge after they stay in your unit?  Is this the kind of management you want for your rental property – especially when RML is overcharging you at a rate of 50% of every dollar you make with your condo?

Other Alternatives

It is my understanding that RML is continuing to charge only 40% management fee to cabin owners.  I’ve even heard that they have offered some cabin owners a rate of 35% management fees.

RML has to offer these kinds of rates in the highly competitive property management business in order to compete for customers for their services.

Then, why is RML overcharging Deer Ridge owners a whopping above-market rate of 50%???

I believe it’s because Joey and the Gang think they have you locked in as a captive market – no matter how bad a job they do or how much they want to charge you.

Here’s the secret they are praying you do not discover:  You DO have a choice!

There are several other property management companies in Gatlinburg and Pigeon Forge that would love to have your business – at a competitive rate.

There is NOTHING whatsoever that prevents you from using any management company you want to use for your property rental business.

We know of one owner who has already turned in their 60 day notice to RML.

Maybe, you should be the next.

Recommendation

Do NOT sign the new RML management agreement and lock yourself into a 50% management fee!

Instead, shop around and see if you can save yourself a $1,000 a year more for YOUR pockets – versus Joe Thomas’ pockets – by using another management company.

Then, let’s shut down RML, get out of the motel business and stop the horrific cash flow hemorrhage caused by Joe Thomas’ salaries, perqs and benefits.

PS:  Here Are The Notices

According to the current Ridge Resort Realty web page, Larry Ohm, CPA, Treasurer and “board” member is selling his Deer Ridge condo:

Makes You Wonder

Kind of makes you wonder why Larry is selling now?

Maybe it is for personal reasons such as a divorce or personal financial problems or something else.  But could it be that, as Treasurer, he sees the abyss that Deer Ridge is headed for because of the stupid decisions the “board” has made to keep us in the motel business as RML huge real negative cash flows rape and bankrupt our HOA?

Could it be that he sees the progress we are making with the lawsuits in our claims against the individual “board” members for all of their hundreds of thousands of dollars of ultra vires expenditures for which the board members may be held personally libel for repayment?  Of could it be that he is very concerned about the smoking guns that may come to light once we have the REAL books and records?

Kind of makes you wonder, huh?

Whatever the reasons, this action makes him a lame duck board member since he will have to immediately resign his board membership upon the sale of his unit.  Since he is now, by definition,  a “short termer,” I am personally worried that he will push for short term, and short sighted, solutions and answers to the many Deer Ridge issues and problems – jeopardizing our property’s future for expediency until he can get the hell out of Dodge.

You Can Run – But You Can’t Hide

Larry, just so you know, we WILL continue to pursue our claims in our lawsuit against you, individually – whether you sell your unit or not.

Just to be clear, so far the only thing we have seen is what I believe to be clear cut ultra vires acts as a result of you and the rest of the board approving alterations and improvements totaling more than $200,000 in violation of our Master Deed and Bylaws.  We will have to see if the Court agrees with us about that – and anything else we may find from our ongoing due diligence that we may bring before the Court.

If the Court’s rulings on our lawsuit concerning you come down in our favor, we expect to hold you personally accountable for your past actions – and inactions – including any ultra vires acts or any and all malfeasance the Court finds.

The following is a copy of an email sent to the entire board and Joe Thomas on June 18, 2011 regarding “accusations” and the board’s evasiveness on providing direct answers regarding the Master Deed required insurance escrow account and funding. ( Click Insurance for details about this issue.)

Hey Luther, Board,

In reference to your last e-mail to me below:

Please, If there is an “Accusation” in my e-mail, Please point it out to me..

If any of the questions and / or assumptions I have made regarding the past failure to pay Workman’s Compensation Insurance premiums is incorrect or the amount of money needed from the owners to pay the settlement for the non insured, injured former employee, please let me know.

If in the past, without a formal request given 2 weeks in advance, and after signing a non disclosure agreement and only being able after all this, to view the documents on a Wednesday ….has Joe or the board ever shown any owner, any first hand proof “Original Documents” of any GGRC business.  If so, please remind me….

Asking for proof of the Master Deed Guidelines “Requirements” on Insurance Payments and other important matters should not be such a formal procedure.. The Board either is, or is not escrowing for the upcoming premiums in the prescribed way, or not. For you and Joe and the rest of the board to dance around the issues is unacceptable and you should  be forthright enough to answer these questions, EVEN IF you DEEM Them Trivial, Trite, and coming from a person who’s personality you do not care for.

This is no reason to avoid answering, No reason to spend THOUSANDS of our dollars to shut someone up and intimidate others…….. Just be open with the owners.  Just bring all into view.  Take care of business without spending owners money needlessly.

Please, just be open, be better stewards of the owners money. “Lawyer Fees,” – Are they really necessary in order to stop the questions, or is it a personal vendetta against someone whom the board and the manager view as a potential problem?

Engaging several $250.00 an Hr. lawyers could / should have been avoided by simply having had a very open discussion on these matters, so that we could have put them behind us long ago – With thousands of OUR dollars saved.

I believe GGRC, RML the board were the ones that first hired lawyers and filed law suits in all this, is that correct?

In my opinion, this all has caused a ridiculous level of Aggravation for all concerned, and at very high expense.

All of this because of the board’s unwillingness to be Transparent / Open as you had promised in the past….

Please answer these “Accusations” point by point, so as to be Clear Concise, Non Political.

Is that too much to ask ?

Thank you, Neil Blair C-208

That’s Neil’s June 18th email to Luther Parker and the board. As far as I know, here on July 5th, he has yet to receive his deserved point by point answers.  And, that is why he asked me if he could make this guest post.

I personally believe that Luther Parker, Joe Thomas and the rest of the board have not answered because they don’t want to admit that they are violating yet another provision of our Master Deed by not funding the property insurance escrow account – thereby putting ALL owners at major economic risk.

As owners, what do YOU think?  Post your comments below.

Bouncing Paychecks – And The Joe Thomas 10% Raise

Scuttlebutt around the Deer Ridge Mountain Resort property is that payroll checks to GGRC and RML employees bounced last week and/or that the bank refused to cash the checks when presented at the teller window.

If that’s true, then all owners at Deer Ridge should consider this a Red Alert!

Besides the obvious hardships it creates for employees, here’s some of the other reasons why, in my personal opinion, this is a very BIG deal:

1. It means that the cash balances in our operating accounts are so tight that games are being played just to keep the doors open.
2. It means that even in the middle of June, we are having cash flow problems.
3. Historically, Joe Thomas and the “board” have counted on the height of the tourist season to bail RML out from all the many months of negative cash flow during the non-prime time seasons…with Joey counting on the summer months to pay off the bank line of credit it uses up in the winter and early spring…and to build up cash reserves for when the summer rush ends around the middle of August.
4. If RML is already bouncing checks for its employees in the middle of the big tourist demand, it tells me that RML and GGRC are NOT positively cash flowing even during this prime time.
5. If there is really a negative cash flow in prime time right now, it also means that the line of credit is not getting paid down now in time for the winter months…which means that RML may end up in default of the loan agreement with the bank and the bank may call the note, demanding it be paid in full, probably within 30 days of the demand.
6. If this happens, GGRC is at major risk which makes all owners at major risk.
7. All of this strongly accents the screaming need for the “board” to comply with the Master Deed’s requirements for maintaining a separate escrow for the property’s multi-peril insurance policy payment of between $45,000 and $60,000.
8. According to my calculations, we should already have over $36,000 in a separate escrow account right NOW to make sure we can pay for our property insurance when it becomes due in November.
9. My belief is that there is NO MONEY in escrow for the insurance policy payment and that the board is, once again, violating the clear requirements of our Master Deed.
10. Please click An Additional MAJOR Risk To All Deer Ridge Owners so that you understand the dire consequences of the “board’s” gross incompetence and gross mismanagement by NOT abiding by the requirements of our Master Deed.
11. I recommend ALL owners contact every member of the “board” immediately to demand that this escrow be funded.
12. All of this makes me wonder why the “board” gave Joe Thomas another 10% raise at the last budget meeting! (It makes me also wonder if HIS payroll checks bounced too – or if he made sure his cleared first!)
13. Joe Thomas is probably already earning a combined compensation from all Deer Ridge sources of between $80,000 and $100,000 for managing a small 84 unit condo complex.  Our 144 unit beachfront condo in Clearwater Beach, Florida pays the property manager $32,000 a year in addition to paying for ONE maintenance person – for a property that is nearly twice the size of Deer Ridge.  Go figure.

Did You Spot THIS In Last Year’s Audits?

Many of you probably didn’t look closely at the 2010 audits of GGRC and RML – but they contain dire disclosures.

This is the screen grab from the GGRC Audit.  Note that it shows that GGRC had a year end bank overdraft of $4,300!  That means Joe Thomas had knowingly written checks for that much over and beyond what GGRC had in the checkbook!

The following is a screen grab from the RML Audit.  It shows that:

• RML had a year end bank overdraft of $34,230!  That means Joe Thomas had knowingly written checks for that much over and beyond what RML had in the checkbook!
• That means that between GGRC and RML, Joe Thomas had written overdraft checks that wouldn’t clear the bank totaling almost $39,000!
• The CNB Line of Credit had already been tapped for $33,500 and Joey and the board STILL had almost $39,000 in bad checks written to GGRC and RML vendors at the same time.
• RML is in technical bankruptcy.  This happens when a company’s liabilities exceed assets.
• As you can see from the audit, total assets were $52,000 and liabilities were $225,000!  We are talking liabilities exceeding assets by a multiple of 4.33 – so we are not talking marginal technical bankruptcy!
• Note that RML has a NEGATIVE NET WORTH of more than $173,000!
• RML lost $55,000 for 2010 according to their accounting and audit. Even as bad as this is, this is still a bogus number because Joe Thomas and Larry Ohm and the rest of the board play games with the numbers.
• They falsely attribute another $100,000 a year in expenses to GGRC that are clearly RML related costs – so the real loss is around $155,000 per year for RML.
• In my opinion, Joey and the board “cook the books” with their false cost accounting so that Joey and the board can keep us in the motel business.
• Click RML Lie Exposed: RML Actually Has Negative Cash Flow Of $152,000 Per Year and check my numbers – and let me know if you think I am right or wrong.
• At least Larry Ohm is now admitting that he had previously LIED to all owners when he continued to claim that all of GGRC benefited from the “positive” cash flow from RML. Click Liar Larry for details.

Remember, these are not MY numbers…these are the numbers directly from the 2010 audits.

Combine this information with the stories of last week’s bounced employee payroll checks and you end up with major RED FLAGS just how dire the situation has become at Deer Ridge.

Bottom Line:  RML Is Bankrupting GGRC And Putting ALL Owners At Risk!

As you can see, RML is already bankrupt.  The problem is that it is taking GGRC down the tubes with it!

We have GOT to get out of the motel business.  It never made sense for this small property to have its own motel business – and the dire consequences from all the number games that have been played so long here are finally coming to light.

• Like a Ponzi Scheme, these games can only go on so long before it collapses on itself.
• We need to shut down “Little Joe’s Notel Motel and Mountain Resort.”
• We need to sell RML ASAP to stop this bleed and hopefully recoup some of the money from the sale.
• For those of you who are on RML, you are losing more money than you are netting from your management agreement.
• For the 20 of us not on RML, we are being forced to support a failing business venture that should never have been a part of our purchase of a condo at Deer Ridge.
• If we don’t immediately get out of the motel business, be prepared for a HUGE monthly increase in our HOA fees at the November budget meeting.  It will probably be dressed up as an increase for a “reserve” account…but based on all of this stuff, I think it is obvious the “reserve” claims will be yet another lie.
• The coming HOA monthly fee increase of $70 to $100 a month will be Joey and the board’s attempt to keep us in the motel business – no matter how much money it is losing for ALL owners.
• Now is the time to stop the bleed by amputating RML.

Help Us Force The Sale And Shut Down Of RML

Luther Parker and the board just reaffirmed their dedication to remaining in the motel business.

The only way we are going to force Joe Thomas and the Gang of Six to get us out of the motel business is with a lawsuit.

This is why all owners should join with us as a co-plaintiff in our current derivative action against these individuals.  There is no cost to you to join as a co-plaintiff AND you will be able to finally see the REAL books and records on Deer Ridge.

Click Co-Plaintiff to find out how to help!

UPDATE:

Probably in response to the below posting and the growing outcry from other owners, Joey and the “board” just uploaded an insurance “quote proposal” from 10/07/10 onto the GGRC Blog.

Click Insurance Quote for a copy.

We have no idea if this “quote proposal” is, in fact, the policy that is currently in place, or if the payments are current, or if the annual premium shown on it as $45,480 that was due last November is correct.  My guess is that the final real policy was for more money than is shown on this “quote proposal.”  However, if this proposal turned out to be the real policy, GGRC according to the Master Deed, is required to have the full $45,480 in a separate insurance escrow account by September 1, 2011.

This means that there should be $36,384 in the escrow account as of June 1, 2011.  (I am taking bets that they don’t even have an escrow account – let alone having a segmented $36,384, thereby putting ALL owners at financial risk.)

The GGRC blog posting only has the document posted without any narrative discussion – so there is no word in the posting by Joey and the Gang as to the escrow account or its required funding.

Funny, you would think if they were doing things right, they would have gloated that I was wrong about the escrow account and the required funding.  Go figure.  However, in light of the new posting about Bouncing Payroll Checks, the below information is even more critical to all owners at Deer Ridge!

END OF UPDATE

An Additional MAJOR Risk To All Deer Ridge Owners

As previously mentioned in a prior post, we believe that there is very strong evidence that Joe Thomas and the “board” have, once again, put ALL Deer Ridge Owners at economic risk – this time with our property insurance.

Our annual insurance premium is approximately $45,000 to $60,000.

To protect all owners, the Master Deed (see below) requires that all premiums are escrowed in a separate escrow account to ensure that the funds are available when the annual premium becomes due…and that the full amount of the premium is required to be totally escrowed at least 60 days prior to the due date of the annual insurance premium.

New, Upcoming Motion With Court

By our calculations, the amount that needs to be immediately escrowed probably ranges from $30,000 to $42,000.

As a consequence, we plan on filing a new motion with the Court to force Joe Thomas and the “board” to immediately transfer these funds from the current GGRC operating account into a separate court administered escrow account for the protection of all owners.

What will be very interesting to see:  If the board even has sufficient amounts in our operating account to meet this required obligation of our Master Deed.

If these amounts are not escrowed, it is my opinion that this, by itself, is sufficient reason to fire Joe Thomas and the entire board for “cause” for gross negligence and gross incompetence.

However, if these amounts are not available in our operating account at this moment in time, it is my opinion that this, by itself, is sufficient reason to fire Joe Thomas and the entire board for “cause” for MASSIVE gross negligence and MASSIVE gross incompetence.

PRIOR POSTING

Below is the information we had previously posted that gives the proof of the requirement and the list of documents we are immediately demanding from Joe Thomas.

Insurance Escrow Account – Another Violation By The “Board”?

I am highly concerned about the economic viability of GGRC in light of RML’s huge $152,000 negative annual cash flow. Even Larry Ohm’s admitted loss of $55,000 for RML for all of 2010 would cause this same concern.  With that concern in mind, I am highly concerned that Joe Thomas and the Board of Directors have been negligent with regard to Article X of the Master Deed.

Article X, entitled “Insurance”, provides in Section 3 that all owners are to pay a separate check for their pro rata share of the Common Expense for insurance so that it can be deposited into a separate trust account.

I am highly concerned that there has never been any requirement of any kind by Joe Thomas and the board for any owner to abide by this requirement since my purchase in 2005.

I am further concerned that all owners at Deer Ridge are not being afforded the economic protection provided by Article X Section 3 of the Master Deed. I believe there may not be any separate escrow account established and properly funded in accordance with Section 3 of Article X.

Since the annual insurance premium is substantive at approximately $60,000, my calculations show that approximately $6,000 should be escrowed each month so the amount of the account balance should be sufficient to pay the annual $60,000 sixty days prior to the due date as required by the Master Deed.

Proof Of Protection For ALL Owners Against A Lapse In Insurance Coverage

It is critical for ALL owners that we have sufficient funds to pay our property insurance annual payment when it is due – and not risk ANY potential lapse in coverage that could very detrimentally affect us all.

By way of verifying that Joe Thomas and the board have properly abided by the Master Deed on these issues, I, will be IMMEDIATELY requesting the following be provided to me, in accordance with the Tennessee Horizontal Property Act:

• A copy of the current, and most recent three years, annual insurance policy cover page, showing due date of insurance premium, coverage and coverage dates.
• A copy of the current and past 24 months of bank statements for the separate escrow account that is required to be maintained for the insurance payment.
• Since I am also concerned that Joe Thomas and the board have fulfilled their commitment and promise to maintain a separate escrow account for the “special assessment”, I also request a copy of the current and past 15 months of bank statements for the separate escrow account that is required for the “special assessment.”

By my count, this should only require copying fewer than a hundred pages.

Assuming that Joe Thomas and the board have, in fact, properly abided by The Master Deed and Bylaws, I would assume there would be no problem in immediately providing these relevant and reasonable requests for information on my investment at Deer Ridge.

As a matter of fact, I would recommend that YOU, as an owner at Deer Ridge, immediately request these documents yourself since you also have a right to see them.  If you get them, please send me a copy.

What’s Your Experience With These Documents?

As to whether these documents and accounts exist, let me ask all owners:

• Have YOU ever written a separate check to the Insurance escrow account as required by our Master Deed?

If your answer is NO, then I think we probably already know the answers as to whether Joe Thomas and the board have been violating yet MORE parts of the governing documents for Deer Ridge Mountain Resort.

Even More Evidence of Gross Mismanagement and Gross Negligence By Joe Thomas And The Board?

It will be interesting to see if these documents and accounts exist – or, more expectantly, are yet again even more violations of our Master Deed and Bylaws by Joe Thomas and the board.  If these documents and accounts don’t exist in their proper format, it is my opinion that this, by itself, is sufficient reason to fire Joe Thomas and the entire board for “cause” for gross negligence and gross incompetence.

Stay Tuned – We Live In Interesting Times!

David Barone Lied To You

David Barone, Secretary of the GGRC Board of Directors, lied to you and all other owners at Deer Ridge about the status of our counterclaim $3 million lawsuit.

In the recent mailing to all owners at Deer Ridge, David Barone made the following statement in the Annual Meeting minutes on his OWN report, ”On April 26, 2011, Judge Rex Henry Ogle dismissed Robert Goodman’s counterclaim.”

This is actually a double lie:  David Barone, as Secretary, was reporting on what David Barone said in the meeting.  Here is the excerpt from the mailing:

This statement, marked in yellow, is a lie.  Want proof?

How Many Lies Have There Been?  How Many More Will They Make?

As you can see below, the Judge did NOT dismiss our counterclaim and Barone’s lie is at best a categorical and self-serving misrepresentation of the facts. At worse, it is just that much more malicious disinformation and false propaganda that is spread by the “board” in their ongoing efforts to maintain their fiefdom and to keep us in the motel business – no matter how much it is bankrupting our HOA.

To me, the David Barone lie about the dismissal of our counterclaim is on a par with the Larry Ohm, CPA and Treasurer, lie that RML is a money maker for GGRC.  Please click  Liar Larry for all the details about THAT lie – and how he is finally being forced to admit in front of God and everyone that RML is losing LOTS of money for ALL owners at Deer Ridge.

It kind of makes you wonder how many other statements by Larry Ohm, Luther Parker, Joe Thomas and the rest of the Gang of Six might, just maybe, be even more lies.  This includes all that they say, all that they write and all that they claim are supposed to be accurate minutes of the meetings and accurate accounting.  And, with David Barone being the Secretary who is supposed to accurately report all meeting minutes, it kind of makes you wonder about EVERYTHING that he writes.

You can decide for yourself…but my personal opinion about all six of them:  “If their lips are moving…” and also, in this case, “If their fingers are typing…”

The REAL Status Of The Lawsuit – Part 1 – New Motion To Void The Asinine Assessment

Part 1 of the REAL status on the lawsuit is that we have JUST filed a follow up motion for a partial summary judgement against GGRC and these same individual “board” members under the SAME counterclaim.

In this instance, the new motion deals specifically with my defense for the “board’s” lawsuit against me for my complete and total non-payment of the “special assessment.”

If you click on the below image, you can download the full 17 page motion to see just how much Barone’s statement was false.  Note that this is still the SAME case number!

Note the parts highlighted in yellow – showing that the file date was May 25, 2011 – nearly a month after David Barone falsely claimed that the Judge dismissed our counterclaim.  Does that look like it was dismissed to you…or do you agree with me that David Barone, and probably the whole “board”, was lying to you with his rendition of the minutes?

The above is the first page of the motion for partial summary judgement in which we are defending ourselves on the “special assessment” lawsuit on two fundamental issues:

• That the percentage used to calculate every one’s proper pro rata share is wrong.
• That the “board” ignored the required 90% mortgagee vote requirement for all improvements and alterations.

The motion requests that the Judge review the Master Deed and Bylaws of GGRC and, based on his interpretation of these documents, void the “special assessment” and rule against GGRC on their lawsuit against me regarding my non-payment.

Get Ready For A “Run On The Bank” If We Win This Partial Summary Judgment On Voiding The Special Assessment

If we win just one of the two major defenses in this partial summary judgment AND win this one part of our ongoing lawsuit, it may probably have the effect of negating the “special assessment” for everyone – especially those who push the issue in Court like we have.

The problem for the “board” is that they and Joey have already spent your money!

In our case, we already have our money – because we were smart enough to not pay it to them in the first place.  For all owners who have paid, if we win even one of the two points, I would recommend that you hurry up and get in line to get your money back as soon as you can.

Note: I am NOT an attorney and do not give legal advice ever.  Period.

However, from a business perspective, I would strongly advise you try and get your special assessment back ASAP.  You might consider taking the above 17 page document to your own attorney and have them use this as the basis of your own lawsuit against GGRC and the board for recovering your own two payments made on the “special assessment.”  By using our document as a starting point, you might be able to save yourself some legal fees.

Better yet, and even cheaper, see the other solution below.

Repayment of $200,000 By Board Members As Individuals

If we win on the 90% mortgagee issue on this motion for partial summary judgement, it is my hope that this will make the individual board members personally responsible to repay the more than $92,000 (26% of the total “special assessment”) that was illegitimately spent on the walkways and lighting improvements and alterations since their actions were ultra vires.

Of course, this partial summary judgement ruling will just deal with the $92,000 of illegitimate Article XII funds that have been spent without proper authority. Based on my initial analysis of several expenditures made by the board, I calculate that all illegitimate Article XII funds spent already exceeds $200,000.  These are monies that required a 75% vote of ALL owners AND the vote of 90% of ALL the mortgage holders for all mortgages at Deer Ridge.

My personal goal if we win on this 75% / 90% issue is to force the individual board members to repay ALL $200,000 back to GGRC along with interest, etc. with our derivative action part of our countersuit.

The REAL Status Of The Lawsuit – Part 2 – Derivative Action

The judge did not dismiss the lawsuit…but he did rule that, for the declaratory judgement part of our counterclaim, we are required to either make all owners a party to the lawsuit, ie, sue all owners, or to get 5% of the voting shares to join with us as a co-plaintiff so that we qualify as a derivative action suit…so the Judge will rule on the declaratory motions we have filed such as RML is illegitimate and squandering half of each month’s HOA fees every month for every owner.

Because of the actions and objections filed by the “board”, we don’t have any choice but to immediately have 4-7 owners join my lawsuit as co-plaintiffs to get us to a total of at least 8 votes out of the 154 available votes in GGRC in order to meet the requirements of a derivative action suit against the individual board members for their violations of the Master Deed and Bylaws and Tennessee state law.

For our derivative action part of the lawsuit, the Judge is requiring us to go ahead and document that at least 5% of the ownership is in favor of the issues we want heard in our lawsuit, e.g., to stop RML from taking half of each month’s HOA fees from EVERY owner to feed it negative cash flow and to stop them from raising every one’s HOA fees by $70 a month as proposed by Larry Ohm in the last board meeting a couple of weeks ago.

This required 5% is something, with your help, that I hope we can do ASAP.

The good news is that we already have 7 votes in hand!  With ONE other owner, we get to the required 8 votes.

But this derivative action suit will ONLY work if one other owner will agree to immediately join in as a co-plaintiff.

Below is the one page document drafted by our attorney for other owners to join the litigation as a co-plaintiff so we can finally get these issues resolved. This is the same signed document we have in hand representing 7 votes by Deer Ridge owners.  As you will see, there is no cost obligation to you – unless you want to consult directly with the attorney for some reason.

Do You Want To See The REAL Books And Records Of GGRC and RML?

Do you want a copy of all the GGRC and RML books and records it’s taken me nearly six years to get? Would you like to help stop RML from squandering half of our monthly HOA fees that are bankrupting GGRC?

Unfortunately, the Judge ruled in favor of Joey and the board regarding their request for a “protective order.”  With the protective order in place, I won’t be able to share with other owners ANY of the books and records, email correspondence, payroll information, RML rental info or other information, unless you are a co-plaintiff by signing the above form.

On top of that, I can’t even discuss my findings with you.  Even if I were, hypothetically speaking, to uncover major fraud or other malfeasance, I couldn’t tell all the Deer Ridge owners what I found.  That’s what Joey and the board want with their protective order.

We hope to get the Judge to change this at a future hearing but that is the current status.  I STRONGLY believe that ALL owners should have a right to see the books and records for Deer Ridge but I have to abide by the Judge’s ruling.

The important thing you should be asking yourself is WHY?

• Why is it that Joey and the board have fought tooth and nail for nearly six years against providing copies of the REAL books and records to ANY owner in the format that is REQUIRED by Tennessee state law?
• Why is it that Joey and the board have pushed so hard for the protective order to keep us from sharing these documents with all other Deer Ridge owners?
• What are they SO afraid that owners will discover and uncover once they have complete access to copies of the REAL books and records?
• Why shouldn’t YOU have a right to see the REAL books and records on your investment at Deer Ridge?

The good news is that we have figured out a legitimate, no cost, way around the games that Joey and the board have been playing to prevent you and other Deer Ridge owners from seeing the books and records.

All you have to do is complete the above form and mail or fax it to me so that you join our counterclaim as a co-plaintiff at zero cost to you.

As a co-plaintiff, you will get to see EVERYTHING that I get to see with our court ordered production of documents.  We also, along with your fellow co-plaintiffs, will be able to fully discuss what we discover and uncover – and together develop the best strategies and tactics for our next steps to protect all of our investments in Deer Ridge.

If this sounds good to you, please complete the above form and fax, email or mail me the completed document TODAY.  Click Contact to email me any questions your have or to get my fax number for your completed form.

Together, we can finally hold this Gang of Six accountable…stop the lies, see the REAL books and records and increase the market value of our property.

Check Out Our Deer Ridge Owners YouTube Channel!

We are currently up to 18 videos that we’ve posted on our DeerRidgeOwners Channel… and are adding more videos every week.  Click DeerRidgeOwners Channel to see what’s new!

Unfortunately, we were thwarted by procedural issues yesterday during our court hearing on our lawsuit against GGRC and the Board of Directors and Joe Thomas. These procedural issues had to do with our pursuit of a class action and a derivative action claim regarding our case – and had absolutely nothing to do with the merits and claims in our case.

Those merits and claims were not even heard yesterday.

We expect to modify and/or amend our lawsuit to solve these procedural issues so that the judge can finally hear arguments on the merits of our multiple claims about the way that GGRC is illegitimately and illegally managed.

Judge Rules We DO Have A Right To COPIES Of ALL Books And Records

One point that was made crystal clear by the judge at the hearing yesterday was that I, as an owner, clearly and absolutely deserve COPIES of all books and records related to GGRC, RML and Ridge Resort Realty.

Our immediate focus will be on finally getting a copy of the “Admin Book” which is the chronological books and records in the format that is required by Tennessee state law. As far as I know, this will be the first time any owner has seen these books and records in the right format – ever!

We believe this is a massive win for the benefit of all owners at Deer Ridge. We intend to perform a forensic audit of every line item in the administrator’s book. Once that’s completed, we expect to issue detailed sworn interrogatories from Joe Thomas and the entire board with specific and explicit questions we will have as a result of our forensic audit. We expect those sworn answers to the interrogatories, and the follow up depositions, to be very revealing with all kinds of potential consequences.

We are going to start with the Admin Book before we get bogged down on reviewing a lot of other documents – with a couple of exceptions.

Besides immediately pursuing our copies of the Admin Book, we intend to review all e-mails between all members of the board and also those of Joe Thomas.

We will also request, for immediate review, a few more documents that are required to be maintained by the GGRC Master Deed:

The Mortgage Book

Firstly, according to Article XIII of the Bylaws, entitled “Mortgages”, the Board of Directors shall maintain a book entitled, “Mortgagees of Condominium Units” which is required to list all mortgage activity and amounts for every unit at Deer Ridge Mountain Resort since the property regime was formed.

Since this mandatory book is necessary for all votes required in Article XII of the Bylaws, we will demand that Joe Thomas and the board provide a copy of this document to me immediately. We request that this document includes all mortgagee changes from January 2005 through the present day.

Insurance Escrow Account

Secondly, I am highly concerned about the economic viability of GGRC in light of RML’s huge $152,000 negative annual cash flow. With that concern in mind, I am highly concerned that Joe Thomas and the Board of Directors have been negligent with regard to Article X of the Master Deed.

Article X, entitled “Insurance”, provides in Section 3 that all owners are to pay a separate check for their pro rata share of the Common Expense for insurance so that it can be deposited into a separate trust account.

I am highly concerned that there has never been any requirement of any kind by Joe Thomas and the board for any owner to abide by this requirement since my purchase in 2005. I am further concerned that all owners at Deer Ridge are not being afforded the economic protection provided by Article X Section 3 of the Master Deed. I believe there may not be any separate escrow account established and properly funded in accordance with Section 3 of Article X.

Since the annual insurance premium is substantive at approximately $55,000, my calculations show that approximately $4,583 should be escrowed each month and the amount of the account balance should be sufficient to pay the annual $55,000 sixty days prior to the due date as required by the Master Deed.

Proof Of Protection For ALL Owners Against A Lapse In Insurance Coverage

It is critical for ALL owners that we have sufficient funds to pay our property insurance annual payment when it is due – and not risk ANY potential lapse in coverage that could very detrimentally affect us all.

By way of verifying that Joe Thomas and the board have properly abided by the Master Deed on these issues, I, will be IMMEDIATELY requesting the following be provided to me, in accordance with the Tennessee Horizontal Property Act:

• A copy of the current, and most recent three years, annual insurance policy cover page, showing due date of insurance premium, coverage and coverage dates.
• A copy of the current and past 24 months of bank statements for the separate escrow account that is required to be maintained for the insurance payment.
• Since I am also concerned that Joe Thomas and the board have fulfilled their commitment and promise to maintain a separate escrow account for the “special assessment”, I also request a copy of the current and past 15 months of bank statements for the separate escrow account that is required for the “special assessment.”

By my count, this should only require copying fewer than a hundred pages.

Assuming that Joe Thomas and the board have, in fact, properly abided by The Master Deed and Bylaws, I would assume there would be no problem in immediately providing these relevant and reasonable requests for information on my investment at Deer Ridge.

Even More Violations By Joe Thomas And The Board?

It will be interesting to see if these documents and accounts exist – or, more expectantly, are yet again even more violations of our Master Deed and Bylaws by Joe Thomas and the board.  If these documents and accounts don’t exist in their proper format, it is my opinion that this, by itself, is sufficient reason to fire Joe Thomas and the entire board for “cause” for gross negligence and gross incompetence.

What’s Your Experience With These Documents?

As to whether these documents and accounts exist, let me ask all owners:

• Have YOU ever written a separate check to the Insurance escrow account as required by our Master Deed?
• Have YOU ever given GGRC a copy of YOUR mortgage?

If your answer is NO, then I think we probably already know the answers as to whether Joe Thomas and the board have been violating yet MORE parts of the governing documents for Deer Ridge Mountain Resort.

Stay tuned – we live in interesting times!

In my opinion, Larry Ohm, CPA, Treasurer and “board” member of GGRC, aka Deer Ridge Mountain Resort, has been lying to owners for years. Click the YouTube icon to watch in high def and full screen so you can see the numbers.

He attests that the books that he and Joe Thomas cook up are a fair reflection of the operations of both GGRC and RML. In my opinion, these are fabricated lies to mislead the owners at Deer Ridge.

This video shows you why I believe that to be the case.

Find the detailed math at www.DeerRidgeOwners.com/realrml

Prove me wrong if you don’t believe me. But don’t be fooled by the lies and the small checks you get from RML — you are losing a LOT more money than you are netting from using RML. Help stop the bleed from RML — Now!

We have filed a $3 million lawsuit against Deer Ridge Mountain Resort Gatlinburg, Tennessee, its General Manager and all individual board members. Several of these issues may be decided very soon in response to our Motion for Summary Judgment.

This video gives the background on one of these issues: The illegitimacy of RML, a wholly owned subsidiary of our HOA costing us $152,000 / year and has squandered nearly AT LEAST $1.3 MILLION over the past 16 years.

Our $3 Million HOA Lawsuit is against the HOA, Deer Ridge Mountain Resort, AKA Gatlinburg Golf and Racquet Club (GGRC) HOA. It is also against General Manager and “board members” Joe Thomas, Luther Parker, Larry Ohm, Margie Duncan, David Barone and Tom Reise, all as individuals.

Full details on lawsuit at: http://DeerRidgeOwners.com.

Primary goals of lawsuit:

1. Force HOA Board and General Manager to abide by both Tennessee State Law and Deer Ridge governing documents.
2. Do away with RML and Ridge Resort Realty as illegitimate ultra vires entities – and stop the $152,000 a year loss to our HOA, GGRC, each year caused by RML.
3. Force the HOA, GGRC, to abide by the Master Deed Percentages and stop financial discrimination against 36% of all owners.
4. Force the HOA to stop overcharging the 30 one bedroom owners by a whopping 82% each month.
5. Force the HOA to stop overcharging the 30 one bedroom owners for assessments, water, and other services.
6. Stop the board from making any alterations or additions to the Common Elements without both the 75% vote of all owners AND the 90% vote of all mortgage holders for all units at Deer Ridge.This is a specific requirement of our Master Deed but has ALWAYS been ignored by the Board. Over $200,000 illegitimately spent in last 5 years.
7. Force the HOA, GGRC, to abide by Tennessee State Law and finally provide the REAL books and records in the format required by the Horizontal Property Act of Tennessee.The Board has continuously fought providing these books and records to owners for more than FIVE YEARS. (Makes you wonder why, huh?)

We will have separate presentations on all four issues for Summary Judgment — so stay tuned for those videos at our blog and our YouTube Channel!

New Video Posted On Our DeerRidgeOwners Channel On YouTube!

Summary Judgment Goals On Our $3 Million Lawsuit

Issue: The GGRC HOA Board Is violating the Deer Ridge Mountain Resort Master Deed and Bylaws by overcharging all 30 owners of one bedroom units by a whopping 82% per month!  This means that all 30 owners have been overcharged during the past 68 months an aggregate $408,540.

This is just the overcharge — not the total paid!

We have filed a $3 million lawsuit against Deer Ridge Mountain Resort Gatlinburg, Tennessee, its General Manager and all individual board members. Several of these issues may be decided very soon in response to our Motion for Summary Judgment.

Our $3 Million HOA Lawsuit is against the HOA, Deer Ridge Mountain Resort, AKA Gatlinburg Golf and Racquet Club (GGRC) HOA. It is also against General Manager and “board members” Joe Thomas, Luther Parker, Larry Ohm, Margie Duncan, David Barone and Tom Reise, all as individuals.

Full details on lawsuit at: http://DeerRidgeOwners.com.

Primary Goals of Lawsuit:

1. Force HOA Board and General Manager to abide by both Tennessee State Law and Deer Ridge governing documents.
2. Do away with RML and Ridge Resort Realty as illegitimate ultra vires entities – and stop the $152,000 a year loss to our HOA, GGRC, each year caused by RML.
3. Force the HOA, GGRC, to abide by the Master Deed Percentages and stop financial discrimination against 36% of all owners.
4. Force the HOA to stop overcharging the 30 one bedroom owners by a whopping 82% each month.
5. Force the HOA to stop overcharging the 30 one bedroom owners for assessments, water, and other services.
6. Stop the board from making any alterations or additions to the Common Elements without both the 75% vote of all owners AND the 90% vote of all mortgage holders for all units at Deer Ridge.This is a specific requirement of our Master Deed but has ALWAYS been ignored by the Board. Over $200,000 illegitimately spent in last 5 years.
7. Force the HOA, GGRC, to abide by Tennessee State Law and finally provide the REAL books and records in the format required by the Horizontal Property Act of Tennessee.The Board has continuously fought providing these books and records to owners for more than FIVE YEARS. (Makes you wonder why, huh?)

This presentation deals specifically with just one of those four issues up for Summary Judgment: The GGRC HOA Board Is violating the Deer Ridge Mountain Resort Master Deed and Bylaws by overcharging all 30 owners of one bedroom units by a whopping 82% per month!  This means that all 30 owners have been overcharged during the past 68 months an aggregate $408,540.

This is just the overcharge — not the total paid!

This amount also does NOT include the OVERCHARGE for water, cable TV and special assessments!

This is just ONE of MANY reasons behind our $3 million lawsuit against the HOA, Deer Ridge Mountain Resort, AKA Gatlinburg Golf and Racquet Club (GGRC) HOA. It is also against General Manager and “board members” Joe Thomas, Luther Parker, Larry Ohm, Margie Duncan, David Barone and Tom Reise, all as individuals.

We will have separate presentations on the other three issues for Summary Judgment — so stay tuned for those videos!

We have filed a $3 million lawsuit against Deer Ridge Mountain Resort Gatlinburg, Tennessee, its General Manager and all individual board members.  Several of these issues may be decided in the next two weeks as a result of our Motion for Summary Judgment hearing scheduled for April 26, 2011.

The following  movie gives the background on one of these issues: The illegitimacy of RML, a wholly owned subsidiary of our HOA costing us $152,000 / year.  Watch this movie to see how RML has squandered and lost $1.3 MILLION of our HOA fees on trying to run their property management company.  That’s $1.3 Million that we would have had in reserves to cover the Asinine Assessment.

Be sure and check out the movie to see the SMOKING GUN we uncovered that proves the “board” has been lying to all owners about the “profitability of RML all of these years.

Our $3 Million HOA Lawsuit is against the HOA, Deer Ridge Mountain Resort, AKA Gatlinburg Golf and Racquet Club (GGRC) HOA. It is also against General Manager and “board members” Joe Thomas, Luther Parker, Larry Ohm, Margie Duncan, David Barone and Tom Reise, all as individuals.

Primary goals of lawsuit:

• Force HOA Board and General Manager to abide by both Tennessee State Law and Deer Ridge governing documents.
• Do away with RML and Ridge Resort Realty as illegitimate ultra vires entities – and stop the $152,000 a year loss to our HOA, GGRC, each year caused by RML.
• Force the HOA, GGRC, to abide by the Master Deed Percentages and stop financial discrimination against 36% of all owners.
• Force the HOA to stop overcharging the 30 one bedroom owners by a whopping 82% each month.
• Force the HOA to stop overcharging the 30 one bedroom owners for assessments, water, and other services.
• Stop the board from making any alterations or additions to the Common Elements without both the 75% vote of all owners AND the 90% vote of all mortgage holders for all units at Deer Ridge. This is a specific requirement of our Master Deed but has ALWAYS been ignored by the Board. Over $200,000 illegitimately spent in last 5 years.
• Force the HOA, GGRC, to abide by Tennessee State Law and finally provide the REAL books and records in the format required by the Horizontal Property Act of Tennessee. The Board has continuously fought providing these books and records to owners for more than FIVE YEARS. (Makes you wonder why, huh?)

This presentation deals specifically with just one of those four issues up for Summary Judgment: The illegitimate and ultra vires RML – Ridge Management, Ltd.

We will have separate presentations on the other three issues for Summary Judgment – so stay tuned for those videos!

PS: Oh, you wanted to see the specifics of the SMOKING GUN we uncovered?

The board continues to falsely claim that RML “helps” GGRC by making money for the HOA.

But we just found a “Smoking Gun.”  This is a document completed by Joe Thomas, himself, and given to owners showing the financial performance of RML over a 10 year  period. Click the image to see the BIG picture!

If you add up all these bottom line figures, you find out that RML was only marginally profitable for 3 years and rip roaringly unprofitable for 7 of the 10 years.  If you add up all the numbers, you find out that RML lost and squandered $359,000 during this period – all taken out of the HOA fees that all owners pay every month.

 Based on our analysis described above, RML is actually losing $152,000 a year for the six years since the Smoking Gun Report.  This equals a loss of $912,000.

• This loss of $359,000 is lost money out of the reserves of our HOA.  Lost – and gone forever – to support a company that should never have been started, let alone continued.
• Right now, this same board wants every owner to fund a special assessment for $353,500.
• All those funds, every penny, would have been in our reserves if not squandered on feeding RML!

As you can see, even though their own document shows a whopping $359,000 loss, it is still based on RML misapplying certain charges back to GGRC thereby understating how much they were REALLY losing during that 10 year period.

Add to this, their admitted loss of $359,000 for the prior ten years.

This RML Loss  Of GGRC HOA Fees Over The Last 16 Years = $1,270,000 = ALL Taken From Owners.

This is the kind of HOA Board Abuse we are trying to stop with our $3 million lawsuit.

Please watch the movie for other interesting facts!

Note To Self:  Be sure and investigate another tidbit of info given away in Joey’s 10 Year Performance Review – Why did all income in Ridge Realty magically stop completely in 2003?  Into whose pockets did those brokerage commissions go since they were obviously no longer going to benefit RML?  I wonder who might have gotten all that money for the past nine years???

New YouTube Video Added

We’ve just added a new video to our Deer Ridge Owners Channel at YouTube.com.   As always, you can watch in hi def and also full screen here or you can view it directly at YouTube.com by clicking the YouTube symbol on the bottom corner of the video.

The Pathetic Pavilion

This video shows the current state of the Joe’s Folly Picnic Pavilion at Deer Ridge Mountain Resort.  These problems have been there for MONTHS…and it’s inexcusable state of disrepair is an embarrassment and a very bad reflection on Deer Ridge to owners, guests and tourists.

Inexcusable.

These photos were taken around Deer Ridge Mountain Resort, Gatlinburg, Tennessee, mostly on March 19, 2011. 

In my opinion, what you are about to see is a dismal indication of gross mismanagement by Joe Thomas, General Manager, at Deer Ridge.

Good First Impression, Huh?

• Tourists see this mismanagement every time they walk the Nature Trail or walk the property.
• Tourists see this mismanagement every time they take their kids to the playground.
• Is this the image of Deer Ridge that you want your guests to have when they visit or rent from you?
• It’s been INEXCUSABLY like this for MONTHS.
• Joe Thomas never walks the property any more?
• We have 3 or 4 on site maintenance people on the payroll.
• None had time during past MONTHS to have one of them fix this stuff that take less than one day?
• The maintenance staff of 3 or 4 does what they are told to do by General Manager Joe Thomas.
• In my opinion, I think it is clearly obvious that Joe Thomas, as General Manager, is doing a pathetic job of managing – and should be fired ASAP for gross incompetence and gross mismanagement.
• Instead, the “board” just gave Joey a 10% raise.

Find Out More – Watch The Video

When you look at this video, try to imagine how this same level of management incompetent translates across the entire property – and even into your own unit.

Stay Tuned For More Upcoming Deer Ridge Mountain Resort Videos

PS:  I am not an attorney and these opinions are my own.  Please be sure and refer to the full disclaimer language in the side bars and the Terms of this website. 

Summary Judgment And Temporary Injunction

 As you know from one of my recent postings, we finally have a hearing date set for my litigation against Joe Thomas, Luther Parker, Larry Ohm, Margie Duncan, David Barone and Tom Reise.  Copies of all four motions that will be heard on April 26, 2011 are shown below.  Click on each photo to download the entire Acrobat file for each document that has been filed with the Court.

We are covering several issues during this hearing that will be pivotal for this case that could cause a major, consequential and immediate impact to the way that Deer Ridge Mountain Resort is operated. We are asking that the judge issue an immediate ruling on his interpretation of the Deer Ridge Master Deed and Bylaws which we believe have been grossly and purposely misinterpreted by Joe Thomas and the rest of the Gang of Six.

 The changes resulting from a favorable ruling could include:

• The Judge’s ruling could determine, once and for all, how everyone’s monthly assessment is calculated, including HOA fees, water and cable TV bills. If we win this one point, all 30 of the 1-1 units should no longer be overcharged 82% every month on their HOA fee!
• The Judge’s ruling could determine, once and for all, how much, if any, will be owed by each owner on the current “special assessment” and the right amounts that should have been charged on all prior “special assessments.”
• The Judge’s ruling could determine, once and for all, whether the current charge to all owners for this year’s portion of the “special assessment” will be blocked by our motion for temporary and permenant injunction.
• The Judge’s ruling could determine, once and for all, whether RML and RRR (Ridge Resort Realty) are legitmate or not…and whether they were created as ultra vires acts by “board” members, making them possibly personal liable to repay all costs associated with RML and RRR for the past several years.  (My calculations show that RML alone has cost owners at least $118,000 a year…so multiply this by The Six years we’ve owned and that equates to over $700,000 that might be owed back to GGRC by the individual “board” members.)
• The Judge’s ruling could determine, once and for all, that all improvements and alterations require both a positive vote by 75% of all owners AND 90% of all mortgagees.  If the judge rules in our favor on this, that means that about $82,000, or 23% of the entire $353,500 Asinine Assessment were illegally spent by the “board” since they adamently refused to follow the Master Deed and Bylaws on this point, even knowing it was required.  If this ruling goes in our favor, the “board” can be judged, again, to have been acting ultra vires…which means that each of the “board” members could be held jointly and severally liable for the full amount of the illegitimate expenditures.
• This same ruling should make the “board” members also personally liable for all those past improvements and alterations that were done where they ignored my demands for the past 6 years to solicit the required 75% vote of all owners.  These include:
• • Joe’s Folly – The $80,000 picnic pavillion that should have never been built.
  • New pool decking – $30,000
  • Reception area and office improvements – $25,000
  • Maintenance building improvements and addtions – $15,000
  • Chairs for weddings, etc. - $3,200
  • Playground equipment – $3,000
  • New computers and office equipment – $5,000
  • Vehicles, golf carts, etc.  ???
  • Game room equipment  ???
  • Commercial laundry room equipment for RML ???
  • All of these monies were spent by the board without proper authority and approval by the owners at Deer Ridge.
• Some of these amounts are guesses and I am sure this list of improvements and additions is not comprehensive.  But once we are finally allowed to see the real books and records as provided by Tennessee state law, we expect that we will be able to add lots more to this list and correct the numbers here.  
• Even without the addtions, the above list adds up to more than $161,200 that would be ultra vires violations by the “board.”
• All totalled, this could make the “board” members individually responsible to personally pay back over $940,000. 
• If we divide this amount by the 5 board members, that would equal $188,000 that each would be responsible to pay.  However, it is my understanding that all board members are “jointly and severally” liable for this amount…which means that each board member is fully responsible for the whole amount if and when one board member or another doesn’t pay. If this happens, I can easily envision lawsuits being filed by one “board” member against another demanding that they pay their fair share of any court ordered reimbursements back to GGRC. If lawsuits between “board” members were to happen, all kinds of “smoking guns” disclosures might be uncovered.

The Other Key Motion

We also filed a Motion to Compel so that this Despicable Gang of Six is forced by the Court to finally turn over the Deer Ridge books and records.

• It’s been nine months since we filed our motion for production of documents with the Court — but so far Joe Thomas and the “board” have not complied.
• We have been waiting for nine months for Joe Thomas to turn over the books and records on GGRC that all owners have a right to see.
• Joe Thomas keeps adamantly stating that he has properly maintained the Administrator’s Book as required by Tennessee state law.  Joey keeps saying they have this information, in the right format — but they don’t seem to be able to produce it.

I wonder why?

Now, Joey and the Gang are trying to mark all of Deer Ridge’s books and records as “confidential‘ to keep us from sharing them with YOU – all past and present owners At Deer Ridge who also have a right to see and thoroughly study the books and records concerning OUR investment in our property at Deer Ridge.

They claim these books and records and the emails between the six Gang members “… may cause injury, prejudice or [particularly] embarrassment” to Joe Thomas, Luther Parker, Larry Ohm, Margie Duncan, David Baron and Tom Reise.

As our Motion states, these “embarrassing” consequences fall in the category of “sometimes the truth hurts.”

Additionally, our motion to block their “protective” order stipulates we completely agree that obvious information such as Social Security numbers, credit card numbers and the like will be treated as confidential….but NOT all the rest of the information that we will find in these documents.

We fully expect to find all kinds of “embarrassing” actions and statements, done and made, by this Gang of Six.

We fully expect to also find all kinds of other questionable activities that have been committed by these individuals.

And, we, and several other Deer Ridge owners, plan on looking VERY carefully and diligently for any and all signs of any potential civil and/or criminal malfeasance that might have, just maybe, been committed by any, or all, members of the Gang. As of now, we’ve not seen any documentation that proves malfeasance — but then again, we have yet to get the full books and records we’ve been requesting for over five years. Right now, we only have our overwhelming intuition that screams about ongoing malfeasance.

Maybe we won’t find any such malfeasance — but if we do, any and all guilty parties will suffer a whole lot more than simple “embarrassment.”

Maybe that’s why the Gang members are continuing their desperate FIVE YEAR long attempts to keep this information secret. They seem terrified their secrets are going to finally see the light of day.

We believe that’s one of the reasons that Joe Thomas and the Gang have fought so hard, for so many years, to keep this information out of the hands of the owners who deserve full visibility, full disclosure and full accountability from those who have been handling over $1 million a year on this property for a decade.

• What IS it that terrifies them so much about what we will find in those books and records?
• We ARE going to get to the bottom of this.
• We ARE going to get access to all the books and records that Joey and the board have tried for years to keep secret.

And, we intend to do everything we can to block their motion for “protective” order — so that we can share ALL of this information with EVERY owner At Deer Ridge Mountain Resort.

Note – Temporary Injunction To Block Special Assessment Payment – Should You Pay?

Notice that Section 4 of the Motion For Summary Judgment includes wording that we “seek a temporary and permanent injunction prohibiting and restraining the Board from attempting to make any alterations or additions to the Common Elements except in compliance with the seventy-five (75%) percent and ninety (90%) percent requirements of Article XII subsection 2 set out above, including the $340,000 “Special Assessment .. currently being billed to Association members.”  (The $340,000 is a typo that is being corrected to reflect the full $353,500.)

Bottom line:  We believe this wording blocks any and all collection by GGRC for the “special assessment” if the judge agrees with our motion. You should be your own judge of this document and its intent and decide for yourself if you are required, in light of this pending court action, to make the currently due special assessment payment.  We believe it is germaine that 23% of this special assessment is for walkway railings and lighting improvements that did not have the required 75% / 90% vote.  Also, germaine is that the calculated amount for every unit does not abide by the Master Deed Percentages – which means that the amounts of all payments due from all owners would be significantly different.

This seems like two very good reasons to me that the Judge should award both a temporary and permanent injunction against this Asinine Assessment.

Lots More Info

Please check out the following links for more information on these issues – and what we hope to gain from our $3 million lawsuit against  Joe Thomas, Luther Parker, Larry Ohm, Margie Duncan, David Barone and Tom Reise.

• Date Set For Summary Judgement And Motion To Compel Filed Against GGRC, Joe Thomas And Board 
• Videos on Deer Ridge Owners Litigation Coming To This Blog AND To YouTube!
•  HALF Of Your Annual Deer Ridge HOA Fees Pay To Support RML’s Negative Cash Flow 
• Deer Ridge Board – You Better Learn A New Latin Term – Ultra Vires
• How To Fire Joe Thomas And Save GGRC Tens Of Thousands $$$ Each Year
• Independent Legal Opinion: GGRC Board Guilty Of Numerous Violations / $353,500 Assessment Is Null And Void

Copies Of Motions Filed with the Court

Motion For Summary Judgement & Temporary Injunction - Click For Document	Motion To Compel - Click For Document
Motion To Dismiss and Judgment on Pleadings - Click For Document	Motion For Protective Order - Click For Document

Stay Tuned! 

We live in interesting times!

Tick…tick…tick.

PS:  I am not an attorney and these opinions are my own.  Please be sure and refer to the full disclaimer language in the side bars and the Terms of this website. 

PPS:  Be sure and watch this blog for upcoming news about our new domain name:  HOABoardAbuse.com and our two new video channels on YouTube.com:  DeerRidgeOwners.com and HOABoardAbuse.com.  In-depth videos are being produced to fully explain, to all Owners and the World, exactly what is happening both at Deer Ridge and at other abusive HOA Board run properties across the Nation.  These videos will be posted on both DeerRidgeOwners.com and YouTube.com. 

 Stay tuned – you never know what videos might go viral!