Bridgewaters: Lanes only have "a few hundred thousand dollars in assets."
The crabs in the Ridgway Lane bucket got a little feistier yesterday as the Bridgewaters Homeowner's Association sued to stop the Lakebend Homeowners Association from collecting a $1,238,500 judgment against Ridgway Lane, David L. Lane, and David W. Lane.
The Lakebend Homeowners Association sued Ridgway Lane as well as David L. Lane and David W. Lane in Rankin County Circuit Court in November (W is the son of L.). Ridgway Lane manages homeowners associations. David L. Lane and David W. Lane are the President and Vice-President of the company. Eleven homeowners associations sued Ridgway and the Lanes in Rankin County Circuit Court, alleging the defendants embezzled over two million dollars from accounts they managed for the HOA's. A list of the lawsuits and alleged embezzled amounts is posted below. The HOA's accuse the defendants of embezzling over $2.3 million from their accounts. The lawsuits charge the defendants with breach of contract, conversion, unjust enrichment, negligence, civil theft, and breach of fiduciary duty.
The Lakebend Homeowners Association sued the defendants on November 14, 2019. None of the defendants filed an answer to the complaint. Lakebend moved for a default judgment on December 17. Judge Dewey Arthur granted the motion and awarded a default judgment of $235,000 to Lakebend on December 20. The Court also slapped Ridgway & the Lanes with a million dollars in punitive damages as well as attorney's fees of $3,500 (Michael, you're cheap.).
However, Bridgewater and Bridgewater II said not so fast, my friend. The two Ridgeland HOA's filed a motion to intervene in the Lakebend case yesterday. The Bridgewaters argued:
9. To date, 11 homeowners’ associations have sued Defendants for conversion or misappropriation of association funds, among other things. All these associations, Lakebend included, have directly benefited from BOA’s and BOA II’s joint efforts—undertaken early, with alacrity, and at significant expense—to prevent dissipation of Defendants’ assets and preserve them for the benefit of all.
10. Additionally, and in connection with their preliminary injunctive relief, BOA and BOA II have received sworn statements from David Lane and David W. Lane that disclose the identity and value of assets that may be used to satisfy judgments. Roughly speaking, such assets appear to have a combined value of a few hundred thousand dollars, only a fraction of the associations’ aggregate loss.
13. Whatever the cause, be it excusable neglect or otherwise, Intevenors (and all other homeowners’ associations injured by Defendants’ conduct) risk aggravated injury if Lakebend’s default judgment is not set aside.
14. Defendants do not have the assets to satisfy a $1,238,500 judgment. But this much is clear: even partial satisfaction of that judgment—which includes a $1,000,000 punitive award—would leave Intervenors without any hope of recovery or even partial recovery from
Defendants.
15. Intervenors would be severely prejudiced if not permitted the opportunity to intervene and move this Court to set aside the default judgment.
Stay tuned.
17 comments:
Would a creditor please put the lanes and RL in involuntary bankruptcy and let Olack sort this out.
This has turned into a really boring Quilting Party.
Karen sleeping at the wheel in these HOAs. Don’t worry though, she’ll recoup all the money from increased fines and special assessments. Don’t worry guys, it’s to maintain the property values. Doesn’t matter if it costs each homeowner tens of thousands of dollars in HOA dues, “fines,” and special assessments over the course of a few years “owning” “your” property.
I do not know the to which this applies to each attorney involved, but this appears to be another situation in which the lawyers are the only ones who will actually get much money out of this...and at least of the lawyers are fine with that.
As an aside, it doesn't sound like there is much to sort out because there isn't much left to divide up. The better thing might be to attempt to ascertain what is left and divide it up proportionally among the HOA victims. However, that wouldn't provide much opportunity for billing, so...
I would point out that the Lanes' attorney(s) could have a dilemma insofar as to those fees possibly being subject to forfeiture, depending on who knew what and when they knew it.
Thank you for writing that, 4:08. I do hope, however, that you're not preparing a brief. Always attempt to be moderately sober when preparing a brief or other court documents.
At some point, the numbers need to add up. The accused amounts embezzled far exceed their proclaimed assets. What the hell were they spending the money on?? Was the money financing their struggling business? Gambling?? What?!? If all of our HOA’s aren’t getting back our money, we deserve to know what they did with it. (There MUST be multiple people involved. One person couldn’t have kept this up for so long without someone stumbling upon it. Somebody opened mail and other correspondence... or saw printed copies. There’s no way it was just Papa! If not Richard and Junior, then at least some office personnel must have known.)
What was the true and real reason 'papa' testified in court that McHenry had no knowledge of the scheme?
Two dogs fighting over a meatless bone-
Everyone involved in the fraud should be denied federal benefits (SS , Medicare)
For life. Their federal payments should be directed to the injured. Their 409ks should be diverted as well. And they should go to prison which they should have to pay for when they get out.
Can this other HOA just break off $100,000 from the settlement for Palisades so we can move on from their $h!t show of any further posts.
Can someone please start a Go Fund Me to get Kingfish to shitcan this whole charade and never post about it again. I'll kick in $300.
"Two dogs fighting over a meatless bone-"
Not to get all philosophilogical, but is anyone really sure this isn't two meatless bones taunting a fighting dog...?
And cogitate a moment or three before you reply.
I agree. Just put them in involuntary bankruptcy and let Olack sort out the mess. They are going to end up in bankruptcy one way or another. I also agree with another the others who have said that there is a woman involved, that or gambling or both.
While I congratulate the Plaintiffs who obtained the Default Judgement for their diligence, I have been there before. The eventual BR Trustee will use the preference statutes to claw back the funds from the creditor. However in negotiations with the Trustee the Plaintiff will likely be allowed to keep some of it.
2:47, I’ve thought it over and still can’t figure out what the hell you’re implying. Can you take it out of the metaphorical realm and be more specific? Thank you in advance.
2:47, in response to 8:17PM:
Here's a hint, quoting from those noted American philosophers, Samuel L. Jackson and Quentin Tarentino:
"I never really questioned what it meant. I thought it was just a cold-blooded thing to say to [someone] before you popped a cap in his ass. But I saw some shit this mornin' made me think twice. Now I'm thinkin'...it could mean you're the evil man. And I'm the righteous man. And Mr. 45 here, he's the shepherd protecting my righteous ass in the valley of darkness. Or it could be you're the righteous man and I'm the shepherd and it's the world that's evil and selfish. I'd like that. But that shit ain't the truth. The truth is you're the weak. And I'm the tyranny of evil men. But I'm tryin, Ringo. I'm tryin' real hard to be the shepherd."
In the instant case, it certainly appears that while the rest of the cast of characters is present and accounted-for, no one, Ringo, is trying to be, or gives a shit about being, the shepherd...
Hope this helps with any confusion.
Don’t stop the updates.. some of us enjoy them!
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