GENEVA – A Kane County judge on Tuesday dismissed a $70 million suit filed earlier this year by a Campton Hills homeowners association against its former board.
Kane County Circuit Court Judge Robert Spence agreed that the current Fox Mill Homeowners Association Board could not sue because its bylaws require a majority vote by all homeowners.
"The bylaws clearly prohibit a lawsuit from being filed [or a] law firm being paid, without the majority vote of the owners," attorney Robert Villa argued, on behalf of the former board, Fox Mill Limited Partnership, in seeking to have the suit dismissed.
The complaint was filed in Kane County by attorney James Newman on behalf of the Fox Mill Homeowners Association. Newman lives in the Fox Mill subdivision and is a past president and former association board member.
The suit sought nearly $70 million in financial damages. It alleged, among other things, that the subdivision's former board and management company used dues paid by homeowners for their personal benefit in a scheme to defraud the association.
As a result, when the homeowners took over the board in July 2008, the reserve account had $84,000 in it when it should have had more than $6 million. The additional financial damages stem from decisions that did not benefit the association, such as seeking competitive bids for services.
Newman argued that the amended bylaws were not voted on by the homeowners.
The suit also claimed when attorney Patrick Griffin provided legal service to the association, he did not disclose his interests as an officer and shareholder in B&B Enterprises, the Fox Mill developer.
Attorney Jason Hunter, representing Griffin, argued that Newman's allegations of legal malpractice and conspiracy against Griffin were without proof.
In court papers, Hunter stated that Griffin acted legally in providing legal advice and that Newman's allegations fail to show a conspiracy. Spence agreed.
Newman said he would talk with his clients to see if he would pursue an appeal.
Michael Monteleone, a Fox Mill resident and board secretary, said he was surprised by the judge's ruling.
"I will speak with my colleagues and seek legal counsel on what should be our response," Monteleone said.
Raul Brizuela, a resident of Fox Mill, praised the decision.
"It's a happy day," Brizuela said.
Brizuela was wrongly named in the original lawsuit as a member of the previous homeowner association board. Spence had recently removed Brizuela from the suit when he filed court papers showing he was never appointed nor elected to that board.