It has been about a month since my last update to the community, and about a month since the last meeting of the Reflection Lake Community Association board of directors. As you may know, at that meeting, the board voted to retain counsel for the purpose of regaining access to the RLCA bank accounts at Banner Bank by validating the election. Banner Bank holds the accounts frozen, based on a letter Banner received about the election. The RCLA elected board and the law firm retained by the board, McNeice Wheeler, approached Banner with information about the election, but the bank declined to take action to release the accounts.
Instead, Banner Bank referred the matter to the courts. The lawyers call this an “interpleader”, which means that Banner Bank wants no part in making the determination, and asks the court to do so. That creates a lawsuit with Banner Bank as the plaintiff, and the RLCA, Rick Smith and James Powers as defendants.
Although this changed the landscape, the goal of the RCLA elected board remains the same as described in the November 3rd board meeting. McNeice Wheeler continues on the behalf of the RCLA and executive board to establish the validity of the election, necessary to regain access to the RCLA funds on deposit at Banner Bank.
During this same period, an agreement between lawyers did allow some funds to be withdrawn from the RLCA Banner Bank account to pay certain specified bills. The bills paid were the Dept of Ecology annual licensing/inspection fee of $1,218.00, American On-Site final bill of $515.78 for port-potties, $410.00 to Rick Hayes for snow plowing on the private roads, $300.00 to the Spokane County Assessor for 2020 taxes and $54.68 to Inland Power for electricity used at the community center.
Then, just before Thanksgiving, a second lawsuit was filed. It lists Robert Lee, James Powers, Susan Emry, Neal Kimball and Russ Bishop as plaintiffs. They filed against the Reflection Lake Community Association, Rick Smith, Joe Dickinson, Jim Boothby and Charlie Bennett.
This suit is filed with the Superior Court of Washington in Spokane County as case #20-2-03213-32. The complaint is lengthy, but asks for these things:
- A declaration that the election was invalid.
- A declaration that the Community Association does not legally control the Water Association.
- The appointment of a custodial receiver, dissolving the current Association.
- Reorganization of the dissolved Association into separate community interest groups for water, roads and lake facilities.
- All attorney’s fees to accomplish these things.
- Other relief as determined by the court.
Without a response, a default occurs. That means all the requests made in the suit may be granted without any further notice. The issue of the election in this suit is the same issue in the Banner Bank suit. As noted above, the board voted and approved retaining counsel for the purpose of regaining access to the bank accounts. That could not happen if this lawsuit defaulted, so McNeice Wheeler is making the required response.
There are few things happening right now, beyond reviewing documents for lawyers. For the Banner Bank suit, there is no hearing date established. For the Lee suit, a case conference status date is set as part of the suit with a judge, for February 26th.
One new thing is that Mr. Lee has approached several members, making a verbal offer to stop the lawsuit if the board will grant certain things. Although I take this as a good sign, since the lawsuit claims the elected board is not the true board, it is not yet clear what he is asking or offering. If it becomes clear, we’ll call a board meeting to present and consider it.
Meanwhile, the lawyers continue to defend this case. If you agree that we should continue the defense and can help, please go to https://www.gofundme.com/f/Save-the-Association—reflection-lake-elections to contribute.
Thank you,
Rick Smith