Timeline of Events Leading Up to the Lawsuit
1. In January 22, 2018, Rules of Occupancy were issued despite these not having been discussed or agreed at the 2018 AGM. These were viewed as rules that improperly restricted rights of resident owners and raised concerns over ExCo’s lack of transparency and the direction of the Strata.
2. May 2018: A custom developed website (pappagallobeachvillas.com) is discovered and listed short term rentals for 4 ExCo members although the ExCo members did not declare to owners that they had set up this website which could pitch them against other owners. This naturally raised transparency issues as well as concerns over Strata financial expenditures.
3. September 2018: First legal correspondence is issued from plaintiff’s attorney to ExCo requesting copies of minutes, books of account, and uniform rules and regulations. In response the Strata employed a new law firm that handles litigation to respond.
4. November 17, 2018: An email is sent to owners regarding ExCo’s lack of transparency in an attempt to force compliance by the ExCo with its obligations.
5. November 23, 2018: ExCo sends out a letter to all owners claiming among other things that “There is complete transparency with regards to VP governance.” (See Attachment 1 below.)
6. February 19, 2019: Attorneys help set up a meeting with Alan Hall of ExCo and two resident owners to resolve Rules of Occupancy issues (which remained an issue in dispute).
7. February 21, 2019: Two simple Rules modifications were requested and sent to Alan. (See Attachment 2 below.)
8. February 21 to June 25, 2019: Email chain ending in Alan’s “Sorry for the delay…” email. (See Attachment 2 below.)
9. ExCo’s response to the simple Rules changes takes 4 + months and on June 27, 2019 Revised Rules of Occupancy were published. This modified Rules E.9 (a) for repairs and F4 for window coverings as requested. Some owners indicated they did not receive this modification.
10. August 23, 2019: Further to ongoing attempts to resolve the matter without the need for Court action, the Strata attorneys are notified that an accountant will contact BCQS regarding Strata financials. (See Attachment 3 below.)
11. September 3, 2019: Strata financials are requested from BCQS by the accountant. This independent Chartered Accountant handles financials for other Strata and has worked through BCQS previously and received Strata financial information in the format requested.
12. The request is rejected on September 4, 2019. (See Attachment 4 below.)
13. September 18, 2019: A direct owner request for Strata financials is made to BCQS. Michael Baulk of BCQS responds “I will seek instruction and revert to you shortly.” (See Attachment 5 below.)
14. September 20, 2019: Response to financial request is due. No response is received.
15. ExCo given 9 weeks after required date to respond and after receiving no response, on November 22, 2019 a lawsuit is filed on the Strata to obtain Strata financials and minutes. (See Attachment 6 below.)
16. January 11, 2020: AGM held with 2020 budget (sent out on the 10th) having approximately CI 70,000 (U.S. 85,000) budgeted for legal fees to fight the owner request for Strata financials.
17. January 28, 2020: Letter from plaintiff’s attorney placing the lawsuit on hold for 40 days in response to an expressed desire at the AGM for ExCo to settle the lawsuit. (See Attachment 7 below.)
18. February 27, 2020: AGM DRAFT minutes (dated January 16) are sent out.
19. March 18, 2020: The lawsuit is reactivated after there was no response in 40 days from ExCo. (See Attachment 8 below.)
20. March 22 to 28, 2020: Following the reactivation of the lawsuit, Alan Hall exchanged emails with an owner (a Chartered Accountant and Certified Fraud Examiner) who was trying to “…put an end to this costly action.” In his response, Alan indicates the owner misunderstood his AGM comments and gives a timeline that does not address the two key events - - ExCo’s failure to respond to the September 18, 2019 request for financial records and ExCo’s failure to respond to the plaintiff’s January 28, 2020 letter placing the litigation on hold. (See Attachment 9 below.)
21. April 23, 2020: As a result of efforts to have the court schedule a hearing, the Strata’s law firm acknowledged receipt of a January 28, 2020 letter from the plaintiff that remains unanswered.
22. May 22, 2020: Prior to the initial directions hearing scheduled for May 22, the attorneys agreed to the attached Consent Order for Directions. We are awaiting a scheduled date for final hearing. (See attachment 10 below.)
23. June 23, 2020: The Strata's attorney, Bedell Cristin, sent a letter to the plaintiff's attorney, KSG. The letter was a long overdue response to the financial records request of September 2019. (See attachment 11 below.)
24: January 13, 2021: ExCo’s October newsletter contains a section on “Status of lawsuit”. That update leaves out a few facts. (See Attachment 12 below.)
Attachment 13 shows a diagram of QuickBooks accounting methodology and highlights Strata records ExCo has failed to produce despite multiple owner requests. ExCo has also failed to release any Minutes.
Attachment 14 is the troubling TripAdvisor report mentioned in Attachment 12.