Wednesday, December 3, 2014

Cedar Run Legal Update

Decision on Elections Expected Soon

The next court date on the matter of elections for Cedar Run will take place on December 9, 2014.  This has been in the courts since June of 2014, with multiple continuances and procedural games (by Sher) to delay a decision.

We have good reason to believe that the judge will issue a ruling on December 9th, and that there will be no more continuances or delays.  Please be advised that the civil courts have let us down in the past, so we make no guarantees.  That said, we are quite sure that when the judge does finally issue a ruling, it will be to order an election.

Why are we so sure how the judge rule?  It's simple:

Argument for elections
The argument for elections is that Cedar Run's governing documents clearly call for an annual meeting and election every year, in May.  The last one was in May of 2012, and Sher just decided to skip 2013 and 2014 to alleviate any possibility losing control of the Cedar Run board (and risk losing his paycheck).  To correct this, there must be a special meeting, where two election cycles worth of director positions (at least 7 or 8) will be filled by a vote from Cedar Run homeowners.

Argument against elections
Sher's argument against the need for elections in 2013 & 2014 is that since the former board had failed to properly register the master association with the secretary of state.....that the governing documents are completely invalid.  So Sher created new bylaws that also require an annual meeting in May. But he doesn't need to follow them either because he gets a three year grace period on elections from the time he "reinstated the corporation".  According to Robert Sher, the next election isn't until August (not May?) of 2015.

Which sounds valid to you??
We have found there to be ZERO LEGAL BASIS for Sher's argument.  Whether or not Cedar Run Homeowners Corp. was properly registered with the Secretary State is completely irrelevant.  The original governing documents have always been in effect.  The Bylaws Sher created and now proudly displays on his website are NOT legally binding.  Lastly, there are absolutely no laws that guarantee a three year hiatus on annual elections when a non-profit corporation is founded or reinstated.

What NOT to Expect After the Judge's Ruling
Don't expect an election to be announced promptly.  The ruling is simply the first step in forcing the elections.  If you'll recall back in January of 2013, Sher had been ordering homeowners to pay their phase dues to the Master Board, and he had proclaimed publicly that he intended to prevent the payment of what he considered to be illegal bank loans.  By mid January, Judge Hall issued an order, demanding that Sher immediately send out a letter to all homeowners to instruct them to pay their phase dues to their phase association contrary to what he had told them previously.  This letter didn't arrive until late February because Sher did everything possible to delay it.....requiring the banks' attorneys to file multiple motions to hold him in contempt of court.  The civil court system has very little power to enforce its orders.

Despite all, we are getting very close to FINALLY having an opportunity to let homeowners decide about the future of Cedar Run, rather than having Robert Sher impose his will upon our community.

In the meantime, please don't forget to visit our ACTION page.  Feel free to leave a comment, voicemail,  text, or email with any questions or concerns.

restoreCR@gmail.com
VM/Text (224) 544-9058

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