Waterlefe litigation with Shores residents inches toward resolution

After almost a decade of dispute, the issue of additional assessment fees may be put to rest.

By Jessica Salmond
| 6:10 a.m. November 4, 2015

Supervisors Alan Haibach and Chris Hogan spoke up about the litigation with the Shores homeowners during the Oct. 26 Community Development District meeting.

East County
News

At its Oct. 26 meeting, the Waterlefe Community Development District board of supervisors had to decide whether to keep fighting a legal tug of war.

The CDD, Master Property Owners Association and The Shores Homeowners Association have been engaged in a lawsuit since 2012, when seven residents of the Shores stopped paying an additional assessment to the MPOA in 2009. The assessment is a fee that is given to the MPOA, and part of it goes back to the CDD for common area maintenance.

History lesson

2006 — Rumblings begin among Waterlefe and Shores residents about the additional assessment collected by the Master Property Owners Association when the bridge leading from CDD property into the Shores community needed repairs.

2009 — Seven Shores residents stopped paying the additional assessments to the MPOA.

2012 — The MPOA filed a lawsuit against each of the seven residents for the unpaid fees; the seven residents filed countersuits, which were bundled into one lawsuit.

2015 — In August, Waterlefe and Shores residents overwhelmingly voted in favor of Supplement 20, which amended the declaration of covenants and restrictions to establish that Shores homeowners will pay the additional assessment, and the MPOA will assume common-area maintenance within The Shores and collect assessments on behalf of itself and the CDD.

Those Shores homeowners felt that additional money that went into the Waterlefe CDD was not necessary. The Shores is a private-gated community inside Waterlefe. They argued that their community was not part of the CDD, they should not be paying the assessment.

The five years’ worth of fees owed to the MPOA and CDD from the seven residents total around $65,000. The legal fees spent since the lawsuits began in 2012 by the CDD and the MPOA are an estimated $200,000.

“This is a situation that has grown practically ridiculous,” said Supervisor Chris Hogan at the meeting. “We’re entrusted with people’s money and how we use it in the community.”

The civil lawsuit was set to go to trial in the 12th Judicial Circuit Court of Manatee County earlier in October, but was postponed until Dec. 21. After the postponement, the conflicting parties met to discuss a potential settlement that could resolve or at least narrow the scope of the litigation.

Hunter Carroll, special counsel for the CDD, said the meeting was “somewhat successful.”

The first option stated that individuals from the seven Shores residents would have their past assessments waived and in response they would drop the damage claims against MPOA and would agree to pay the assessments starting in 2016. If all seven agreed, the lawsuit would come to an end.

Option 2 included any of the seven residents who didn't choose Option 1, the CDD, the Shores HOA and the MPOA. The remaining residents would still go to court, but past assessments would be dropped while the judge would decide if the MPOA had the power to collect future assessments.

Supervisor John Brocki did not support Option 2, saying he believed the CDD had a solid claim to the money owed.

One Shores resident and member of the Shores HOA — but not a resident directly involved in the legal situation — came to speak personally about his feelings on the lawsuit, and the options presented to settle the litigations. Paul Lang questioned what the board would do if other Shores residents came forward and demanded a refund as they had dutifully paid their assessment fees, while a small number had refused and were now going to get away without payment.

“What will you say to other residents who ask, ‘How come I had to pay it?’” he said.

“This two-option settlement really is the first path to resolution that I think has a viable path to success,” Carroll said.