Eagle Mountain Ranches HOA lawsuit decision of $14M in damages brings both sides to the table
EAGLE MOUNTAIN -- When the Eagle Mountain Ranches Master Homeowner’s Association lost the lawsuit brought against it in March, many residents belonging to the association cheered.
The lawsuit, filed by the Willow Springs, Cold Springs and Rock Creek HOAs, was decided in their favor March 4 by Judge Derek P. Pullan of the Fourth District Court. The suit awarded these HOAs – sub-HOAs of the Ranches Master HOA – damages of approximately $14 million, and about $400,000 in dues placed in escrow to be returned to the sub-HOAs.
The sub-HOAs filed the suit in reaction to 2010 actions by the Master HOA. According to Drew Curley, an Eagle Mountain resident and former board member of the Cold Springs HOA, the Ranches Master HOA passed amendments that gave its board the authority to dissolve any sub-HOAs deemed not to be doing its job. The three sub-HOAs felt the Master HOA was overstepping its authority, and banded together and hired a lawyer to look into the legality of those actions.
As they dug further, the sub-HOA’s lawyers found some other flaws. Curley said the Master HOA had never filed an official declaration to be a homeowners association.