Table Rock Landing files for summary judgment

Wednesday, June 27, 2012

HOLIDAY ISLAND -- On June 12, plaintiffs for Table Rock Landing Owners Association filed a motion for summary judgment against the Holiday Island Suburban Improvement District and Holiday Island Development Corp.

This follows a suit filed in November 2011 for declaratory judgment by TRL for what it says are excess assessments levied on time share owners over a period of at least 12 years.

HIDC is only listed in the suit and motion because it was a party in a 1998 agreement with TRL.

The suit and motion for summary judgment is asking for reimbursement of $1,873,500 for excessive assessments paid since 1990, even though it claims it actually paid More than $2 million between 1990 and 2010.

Under a "handshake" agreement prior to 1998 and a written 1998 agreement, time share units were assessed at the 10 times the rate of an R-1 single family home, in other words, as a time share interval of each unit at 51 weeks, rather than as a single apartment unit.

The motion says that agreement was "an illegal contract" and against state law governing time share assessments. While it acknowledges that recovery of such payments is not usually awarded by the courts when the payments are voluntary, TRL claims its payments were not voluntary because it was unaware of the illegality of the agreement to begin with.

It also says HISID's recent assessments of benefits (AOB) process was "defective and violated the property owners' constitutional rights" and adds that the facts of that are not in dispute.

From 1998 to 2010, the motion notes, TRL paid HISID approximately $1,257,122. In October 2010, TRL notified HISID it would vacate the 10x assessment formula. In February 2011, HISID hired assessor Tom Reed of Reed & Associates to do an assessment of benefits on all lots, which hadn't been done since 1993.

TRL is contesting the legality of the new assessment's filing, stating, it "had not, as of the date of this Motion, been filed with the correct county clerk's office in the Western District" and was not filed on time.

The motion also states in 2011 TRL paid, "under protest," $28,806.12 under a new formula in the AOB of 2.23 times the 2011 R-1 rate of $461.34. If it had been assessed an R-1 rate for each single unit, it would only have paid $12,917.52. The assessments it paid since 1990 and the 2011 assessment add up to the $1.9 million it is requesting as reimbursement.

According to the motion, under state law, it will be up to HISID to prove that material questions of fact remain in order to avoid a summary judgment in favor of the plaintiff.

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