By: Rob Harris
Lakota Canyon Ranch and Golf Club, like many such residential golf communities, is governed by a homeowners association with a board of directors.
According to a lawsuit recently filed by a number of association members, the developer, through its ownership interest, maintains a controlling interest of the association’s board of directors. Using that control, as alleged in the lawsuit, the developer caused the association to purchase the development’s community center at an inflated price.
According to the complaint, the developer, having unsuccessfully attempting a year ago to sell the community center for $650,000, effected a board decision to purchase the center for $1,600,000.
Plaintiffs have alleged breaches of fiduciary duty and are seeking the have the court certify the lawsuit as a class action.
The plaintiffs acknowledge that the board obtained an appraisal, but contend it does not provide a fair and appropriate valuation of the property.