Special Meeting to Address Lawsuit to follow Annual Meeting

A special meeting will be held on Aug. 2, 2014 following the Annual Meeting to inform the members of the Pratt/Johnson Summons and vote on our response to the suit.

Over the past week, members have been asking how the Pratt/Johnson lawsuit will affect us. This lawsuit is probably the most important issue that the PVPA Inc. members will face and may well determine if our way of doing businevs for 130 years will continue.

Please, take the time to go over the summons. I mailed a copy to each member so they can read for themselves what they are demanding. If you did not get one or need one please let me know.

Why are we being sued?
Pratt/Johnson lawsuit attempts to replace the majority decision-making process with one that will reqiiire a unanimous vote. Pratt/Johnson want a judgment by the court that each of them owns 1/40th of the common property and have not identified the other 38 members or what if anything they get.

What is at stake?

Pratt/Johnson lawsuit if successful will result in one owner would be able to block every issue they disagree about, with one vote.
The PVPA has for 130 years held to the proposition that each cottage/lot owner pays equal fees for the development and maintainece of the common property, regardless of how much they use it. Each member is entitled to have their say represented by a vote on common property issues. They are not required to defend or even explain their vote.

Issues are decided by a vote of the majority of the members and most members respect the decision of their fellow members, even if it is not their view. In this case two members refuse to accept the majority decision or in reality the decision of most of the members of the Association.
Members in the annex will be required to pay all dues and special ,assessments but will not have a share of the ownership of common property, according to Pratt/Johnson.
Pratt/Johnson claim is that the Point Vivian Park Association Inc. is only an equal member with them and has no other rights to claim ownership or negotiate on behalf of the members.
The PVPA Inc. members on the well would face a challenge over the future use of the water. (I would be willing to give additional information to those members interested.)
Imagine 41 or so individuals, each having veto power over any PVPA Inc., decision and particularly those affecting issues involving common property. For example, one owner could stop all funding for any work on common property (roads, etc.).
If Pratt/Johnson lawsuit is successful the judgment may lead to dissolution of the Association.

The Board will unanimously be asking members to defend against these actions and other actions, with all the resources we have.

What steps the Board has taken:

6/27/14 We were notified the summons would be coming by MR&T, and approved them to accept it on behalf of the Association. They did the formal notification so we would respond in a timely fashion.

6/29/14 The Board at a regular scheduled meeting approved a resolution to have Joe Russell, MR↦T, to represent us regarding the summons. At this point MR↦T is to help us understand what Pratt/Johnson are claiming and the implications of the suit against the members of the PVPA. Inc.

6/30/14 On behalf of the Board, I sent a letter to the members, notifying them of the summons and a copy of the summons.

7/02/14 I met with Mr. Russell and the decision was that Mitch Katz, the head of the litigation department was assigning a senior litigation associate to us for this matter. Her name is Theresa Bennett. Mr. Russell will still be involved however to assist when needed. We decided to start to provide MR&T with historical documents and legal papers so they would be able to give us a retainer fee.

7/03/14 Mr. Russell was presented documents as requested, and we informed him that our election of officers would be on July 5th,2014 and my role would be determined by the election.

7/06/14 MR↦T was informed that I would continue as President, and would he working with them to prepare our response with the support and cooperation of the Board.

7/07/14 I accepted. on behalf of the Board, the engagement letter from MR&T and at this point we are being charged the Standard Terms of the legal service, and will reconsider the retainer when litigation will be taken place. I also acknowledged what is called a Legal Hold Letter that in essence says we must protect and preserve all information regarding this matter.

7/07/14 – 7/13/14 The Board and members exchanged emails regarding the scope of the summons and tried to figure out what the claim was and what did it mean to us. The process of gathering documentation continued and members of the Board and others started the process of research and discovery.

7/08/14 Another memo was sent to the members addressing the last lawsuit and the new one.

7/13/14 The Board met at a regular scheduled meeting and then had a private session to discuss aspects of the suit.

7/14/14 - Several members gathered information from the County Office Building.

7/18/14 - Letter to members, reminding them of Annual & Special meeting as well as information on Pratt/Johnson lawsuit against us.

Next Steps to be taken:

8/2/2014 Annual Meeting;
An Agenda for the Annual Meeting will be sent to all members as well as the proposed amendments to the Bylaws.

1. PVPA Inc. members meet to discuss and approve 2014-2015 budget. The budget to be presented will include deferring all capital improvement previously approved but not executed and diverted to legal fund.
2. PVPA Inc. members will be asked to approve amendments to the By-Laws.

8/2/2014 Special Meeting to Address Lawsuit (Exclusive of ANY Pratt/Johnson lawsuit agents, members, relations, etc.).

All members are asked to try and stay for the special meeting, if you cannot, please send a proxy* with your indicated support.

*Proxies must indicate Date, cottage address, who is designated to vote for you and your signature, and date of signing.