Key points and excerpts from Plaintiff’s Reply:
I) Introduction
The Sixth and Seventh Amendments are clearly invalid and void on three separate grounds: violation of the strict notice and ratification requirements of RCW 64.90.525; constituting unreasonable and legally impermissible changes to CCRs and violating the conditions precedent set out in the PRD agreement binding the Declarant. The Amendments are also legally suspect for improper/unauthorized execution and recording. Plaintiffs need only establish that at least one of the four legal defects apply to the Amendments in dispute.
II) Discussion
B. The Amendments Are Void Under the Special Rule for Amendments to Restrictive Covenants (pg. 3; line 11-20)
In their reply the Defendants appear to argue necessity. This raises important accounting issues. O’Bryan presents the Court with new financial statements which completely contradict prior documents and comingle homeowner maintenance fees with golf course operations. Defendant accountant’s recent attempts to allocate are admittedly an “artificial distinction.” More surprisingly, Defendants expended large amounts of Homestead revenues on another golf course owned by the owner of 18 Paradise, in Birch Bay. O’Bryan Declaration at Exhibit A, page 4 (“Investment in Sea Links $65,679.33”); Exhibit A, page 5 (“North America CC Canada Payable $295,576.47”)> Documents produced by MJ Management confirm that it spent at least $201,647.21 on the Sea Links golf course. Andersson Declaration, Exhibits 1 and 2. Defendants claim that the golf course subsidized Homestead common area maintenance, while in fact Homestead owners subsidized the owner’s other golf course. Andersson Declaration Exhibit 3.
D. Improper/unauthorized Execution and Recording (pg. 5; line 6-10)
Defendants say that the signature identifies O’Bryan as the person who signed the documents, but the signature on the Sixth Amendment states that “the Declarant has caused this Amendment to be executed on the date entered above, by its President,” and O’Bryan was not the president of 18 Paradise. Exhibit 5 at page 2. In a recent related matter, O’Bryan demonstrated propensity to falsely, and without any authority, sign and record documents affecting interests in land. Declaration of Ron Saran.
Read the complete Plaintiff’s Reply on Motion for Partial Summary Judgement below. (Hover mouse to zoom in/out or change pages.)