Michael Chen handled it.
The second came from Garrison & Croft.
The HOA’s law firm requested copies of every communication we had sent.
Michael responded:
“You already received them.”
That afternoon, the firm issued a notice to the board that it was evaluating whether its representation could continue because factual information supplied by board members appeared inconsistent with county ownership records and prior warnings.
Translation:
Their lawyers had discovered their client might have misrepresented what was happening.
Two days later, Pinehurst residents received an email.
EMERGENCY BOARD MEETING.
MANDATORY COMMUNITY FINANCIAL UPDATE.
That was when the neighborhood finally understood this was not a disagreement about an ugly bridge.
The clubhouse was full.
People stood along the walls.
Sarah and I sat in the last row.
Susan stood at the podium.
Greg sat at the board table looking twenty years older.
The other directors avoided eye contact.
Susan started.
“As many of you are aware, an unfortunate incident occurred involving the Harding property.”
A man near the front said:
“You mean you destroyed the bridge.”
Susan ignored him.
“We acted in good faith based on our understanding of association authority.”
I heard Sarah whisper:
“Good faith.”
I almost smiled.
Susan continued.
“We have now been informed that several government entities dispute our interpretation.”
“Dispute?”
Another homeowner shouted.
“The county says it was their bridge.”
The room became noisy.
Susan raised one hand.
“We are working with counsel.”
A woman asked:
“Which counsel?”
Susan hesitated.
That told everyone what had happened.
Someone said:
“Did Garrison drop us?”
“Not exactly.”
A man stood three rows ahead of us.
His name was Rowan Pierce.
Corporate accountant.
Lived two houses from us.
He held a thick binder.
“I requested the financial records yesterday.”
Susan’s face tightened.
“This is not the time.”
“It’s exactly the time.”
Rowan turned toward the residents.
“The board spent association money on the contractor.”
“How much?”
Someone asked.
“Deposit was $4,250.”
Boos.
Rowan continued.
“They also authorized outside legal expenses associated with the Harding enforcement.”
He looked down.
“Over eighteen thousand dollars in three months.”
The room erupted.
Sarah stared at me.
“I didn’t know that.”
Neither did I.
Rowan looked toward Susan.
“And that’s before any cleanup, restitution, defense costs, or regulatory penalties.”
Susan grabbed the microphone.
“The association has insurance.”
That calmed people slightly.
Rowan shook his head.
“Maybe.”
Susan stared.
“What does that mean?”
“I called the insurer.”
“You did what?”
“I’m finance committee chair.”
“You had no authority.”
“I asked a question.”
He held up a letter.
“The carrier has issued a reservation-of-rights notice.”
Susan turned pale.
Most homeowners did not understand.
Rowan explained.
“It means they have not agreed that this is covered.”
A woman asked:
“Why wouldn’t it be?”
“Because policies generally distinguish negligence from intentional acts.”
Rowan looked at Susan.
“And we have written evidence that the board proceeded after repeated warnings.”
The room became very quiet.
Susan said: