|
UPDATE REPORT
COLLECTIONS CASES IN COURT
OCTOBER 20, 2007
As usual at CSL, the rumor mills are generating very interesting versions of reality in regard to many subjects. However, one subject that needs factual information at this time is in regard to the collections cases.
Yes, it is true that the first five cases are already at the Court, filed and scheduled for hearings. Yes, it is true that there a number of additional cases nearly ready to file. Yes, it is true that we have retained an attorney, Brag Kage, to represent us in the first several cases. After that time, the Board has authorized me to represent CSL’s interests in Small Claims Court.
Throughout the nearly sixteen months that I have served as CSL Community Manager, I have done everything in my power to work with our Members to get their accounts up-to-date without resorting to Court Actions. This year alone, without the payments of many of our large property owners, we have collected an astounding 63% of our current year dues and assessments before October 1st. That is at least one of the best responses in our history, if not the best. We have also collected nearly 80% of our May billing for the dedicated assessments.
The problems are two-fold. First, we need to collect at least 75% of our accounts to finish out the year better off than last year. Second, to eliminate our operating fund debt, we need to collect 90% of our accounts. So what are we doing about it?
On Tuesday, I expect to deliver to our Corporate Attorney copies of all of the statements and warrantee deeds for our largest property owner for the accounts that he has not paid. This is for two very important Civil Suits. The first is to re-affirm the accounts he thought he had the Court extinguish earlier this year for which he failed to provide proper notice to us of his intent to have them extinguished. These are the result of property tax sales. The second is a collection action for the more nearly 200 lots for which he has failed to pay the current year Dues and Assessments.
The second largest property owner also is delinquent on his current year Dues & Assessments, as well as his Dedicated Assessments. His case is also being prepared for delivery to our Corporate Attorney for similar action.
Our fourth largest property owner is also delinquent for this year’s accounts. However, he responded to a final notice of intent to sue and has made an appointment to come in and settle up on his accounts. This saves everyone a lot of time and money.
Contrary to popular belief Larry Armand and Brad Rupel do keep their accounts current.
There are still hundreds of small property owners who refuse to accept their responsibility and settle up their obligations to pay their CSL accounts. Five are already in court. Five more are about to go to court. Why are there not more already in court? - Simply because I refused to go after the small property owners before dealing with the large property owners. Those who are in business need to settle up on their accounts and remain current on them. There is no excuse for them.
Why did the small property owners not go to court sooner? CSL has been through a long period of political struggles. Many people are in the positions they are in because they were part of an effort to incorporate. Others are in the same position because of loss of job or medical emergencies. I have given all of these people the opportunity to work through their personal difficulties, come in to setup a payment agreement and to be diligent in making their payments. A great many of our Members have done so and have been treated with the dignity and respect they deserve for being responsible in taking care of their obligations. The opportunity to get a payment agreement is still available. If you have still not taken care of your account, we will still give you the opportunity to do a voluntary payment agreement. Simply come to the office and be prepared to make an initial payment.
For the rest of the Members who have failed to take advantage of all of the different programs that we have offered to try to help them to bring their accounts up-to-date, there are no other choices left. Now they are headed to Small Claims Court with every reason to expect that they will be issued judgment against them with payment orders, credit report postings and all of the other results of a Court Judgment, not to mention the additional costs added to their bills. This was not a first choice as in the past. This is an action of last resort.
How many cases are in process? Do not think that anyone is going to get lost in the shuffle. There are literally hundreds of cases being processed at this time. Nearly 300 cases are already at some stage of preparation. Nearly two hundred that only needed to be updated are ready to go to the attorneys. The rest have not that much time and effort required to complete them. It is my expectation that, once the large property owner cases are turned over to our Corporate Attorney, I will be filing the small property owner cases at a rate of 15 to 20 per week. This corresponds to the number of cases that Judge Funk will schedule for a hearing date. This in turn helps to keep track of the cases and keep the upfront costs manageable.
One final comment: If you are listening to those who would have you believe that this is not really happening, please be aware that the first cases include some of the people who have encouraged others not to pay and who will scream the loudest. I am quite certain you will hear first hand that this is really happening. Notices of Court Hearings are being delivered this weekend. Will I hear from you soon for a Voluntary Payment Agreement?
David A. Maynard
CSL Community Manager
|
