SIDE STREETS: Judge sides with Cherry Creek owners over HOA

Cherry Creek Springs, a neighborhood of 5-acre ranchettes on the edge of Black Forest, might be better known as Lawsuit Springs for as much time as its homeowners association has spent suing its residents.

The latest case went to trial last week, and it took four days for a judge to sort everything out. In the end, the neighbors mostly won. Two families were not assessed any of the thousands in legal fees the HOA sought. And two families will pay just $1,200 each - far less than was sought.

One of the winners was Matt Lasley, who was sued for refusing to sign a loyalty oath the board demanded from each of its 100 or so homeowners after a group attempted to oust the board in June 2007. Lasley was not involved in the failed coup, but he refused to sign the oath out of principle. Fourth Judicial District Judge Thomas Kane scolded the HOA board in ruling Thursday that Lasley and neighbor Dave Holly were not liable for any legal fees.

"The judge said the process was flawed," Lasley said. "He said ‘Mr. Lasley did not sign the loyalty oath as a matter of honor. But you made him sit in this courtroom four days anyway.' Then he said we pay zero."

Witnesses said Kane seemed disgusted by the case and said the witnesses "were not credible."

Holly hopes his good fortune carries over next week when the judge holds a status conference on a foreclosure action the HOA filed against him for covenant violations and unpaid fines.

The judge did assess legal fees against Robert Gaspar and Bill Morris, who tried to oust the board because they objected to a $75 dues increase in the 2007 budget. Each was assessed $1,200 to cover the HOA expense of fighting the ouster. Morris called the ruling "extremely fair."

Lasley also praised Kane's ruling.

"He said: ‘This court is dealing with something all courts have to, but we can't solve, and that is bad adult behavior.' I think I'm going to carry a copy of his ruling," Lasley said. "Every HOA probably should have one."

HOA attorney Jack Scheuerman, said he was disappointed.
"It did not come out as well as we'd have liked," Scheuerman said, adding that he is not eager to take the Holly foreclosure case before Kane.

Springs resident Haze Hutmacher hopes this is the end of the lawsuits. He denounced the HOA board for "abusing its power" and costing the neighborhood thousands in legal fees it must now absorb.

Residents of nearby Cherry Creek Crossing hope that Springs residents are done fighting, as well.

The Crossing is a neighborhood of similar large-lot homes about four miles west of Cherry Creek Springs. All of the recent news of lawsuits and trials at the Springs has confused folks looking to buy at the Crossings.

"People are thinking it is our community, not Cherry Creek Springs, where all the trouble is," said Chellie Maciunskas, a Crossing resident.

"If outsiders think it is our community with all the problems, it will bring down our home values. If word is getting out that we're in turmoil, who would want to live here?"

Her fears were echoed by Kathie Walker, Crossing property manager.

"I've been getting a couple calls a day from other real estate agents," she said. "They say: ‘I hear your HOA is a disaster.' They don't want to bring clients in. The market is slow enough. We don't need something like this, too, to hurt sales.

"No one wants to live in a troubled community. Especially with so many houses on the market right now. This kind of thing really damages your reputation."