Lang Ranch Case : Association, Not Members, Told to Pay Developer

A Thousand Oaks homeowner association--not its individual members--is liable for $735,000 in damages awarded to developers whose housing project was hindered by the group’s lawsuit, a federal judge has ruled.

U.S. District Judge Dickran Tevrizian Jr. this week issued an amended ruling to his original order that held the homeowners personally liable for the damages. It means that only the nonprofit Westlake North Homeowners Assn. and its attorneys are responsible.

“It’s a major victory, not only for our homeowner association, but for associations all over the state,” said Howard Blau, association member. “It means that individual homeowners are not going to be exposed to liability if their associations bring actions against developers in good faith.”

Tevrizian awarded the damages, believed to be among the highest ever imposed on a homeowner group, after saying homeowners should have voiced their objections at public hearings on the project in 1987 instead of filing a frivolous lawsuit in October. The group of 500 homeowners had sued to stop the developers from building on the 2,500-acre Lang Ranch because of traffic and air-quality concerns.

Close to Settlement

The group was very close to signing a settlement agreement for $123,000 with the developers when they learned of Tevrizian’s amended order, said Hallie Blau, a member of the association’s board of directors and Howard Blau’s wife.

Hallie Blau said board members had tentatively agreed to settle because they felt pressured by homeowners who were afraid that liens could be placed on their properties or their assets seized under the judge’s original order.

The board subsequently decided not to sign the settlement and will meet early next week to decide whether to continue negotiating with the developers, she said.

Attorneys for the developers refused to comment on the negotiations.

Howard Blau said homeowners will be in a better bargaining position now that individuals are not being held liable. He added that the association could declare bankruptcy if necessary.

Tevrizian declined to comment on the amended order because the homeowner association has appealed the damages to the U.S. 9th Circuit Court of Appeals.

The state attorney general’s office will file a brief in support of the homeowners because it is concerned that the heavy damages will discourage residents from challenging other developments, said Deputy Atty. Gen. Atonette Cordero. She said the damages were among the heaviest ever imposed on a homeowner group.

The damages include about $130,000 in legal fees and additional financing costs that Lang Ranch Co. and the Anden Group say they incurred because of the suit.

Teresa Hooks, an attorney for the association, said she was not worried about being held liable for the damages, although the judge’s order specifically names attorneys for the association as responsible parties. Hooks said she is optimistic that the association will win on appeal and that the point will be moot.