Much is being stated about Leisure World’s Mutual Two Board regarding their denial to agree to stipulate that the corporation is an association under the law (the Davis-Stirling Act).
Some of the happenings are misquotes, “spin” and out-and-out lies.
Please allow me to set the stage for what has been happening in Mutual Two and all of the Mutuals for that matter.
On August 18, 2004 a law suit was filed by Golden Rain Foundation, a California nonprofit corporation, and Seal Beach Mutual 2, a California corporation; against 10 shareholders residing in several different Mutuals.
This included Carol Franz and Edmund Loritz from Mutual No. Two. The attorneys for both: Golden Rain Foundation and Mutual Two was Pray, Price, Williams & Russell.
The law firm of Pray, Price, Williams & Russell had been representing all of the Mutuals as well as Golden Rain Foundation since 1963 or there abouts.
Once a trial date was sent for September 8, 2005 there was a request by Mutual No. Two for a continuance of the trial: “based upon the ground that trial counsel has been substituted, and the substitution was required in the interest of justice.”
Also, stated: “Because of a newly discovered conflict of interest between Petitioners in this matter.”
In other words, one law firm cannot represent all of Leisure World.
So begins the spin, according to the Annual Financial report sent to every shareholder the Golden Rain Foundation and Mutuals a “notice” was included.
The notice stated that: “Leisure World Seal Beach, the Golden Rain Foundation, and the Seal Beach Mutuals are subject to a California law known as the ‘Common Interest Development Law’ also known as the ‘Davis-Stirling Common Interest Development Act.”
When a statement is made to the press that: “there has always been a majority of board members—five out of nine—who do not believe Mutual Two is an association” is this a “spin” or an out-and-out lie?
Then we hear from another shareholder making claims that .” . . once again, Mutual Two shareholders Carol Franz and Edmund Loritz are suing their fellow shareholders.” Please be advised the million dollar law suit was filed against 10 shareholders by both Golden Rain Foundation and Mutual No. Two.
And here is the greatest “spin” of all! This same person claims: “Mutual Two is already adhering to Davis-Stirling, and that is sufficient for our needs. We do not need a court order telling us to do something that is already being done.”
Now I ask if this being done, then why not stipulate with the court? Why won’t Mutual Two Board members just go along with a stipulation?
It would save “hundreds of dollars in legal fees.” And last, but not least another “spin” states: “we have confidence that our attorney, will do her best to thwart this unnecessary and costly litigation.”
Of course anyone knows that this attorney is the one that is going to make the money in legal fees.
To quote Voltaire in the 17th Century: “Those who can make you believe absurdities can make you commit atrocities.”
So I ask again, why won’t the Mutual Two Board members and all of the Mutuals agree to stipulate that they are under the Davis-Stirling Common Interest Development Law? Please tell us why not?
Carol Franz is a resident of Seal Beach Leisure World.
