To: All WOHA Neighbors
From: David Otto, 825 White Oak Drive
Subject: Simons v WOHA CourtJudgment and Future

Dear WOHA Homeowners,
It's time to evaluate how we communicate within our Association. Currently, communication primarily goes through the board president and the minutes from board meetings.

However, private discussions that occur post-meeting raise concerns, particularly regarding the Simons v. WOHA lawsuit and what it signifies about our leadership. Additionally, we currently lack an updated 2024 directory of neighbors' names and addresses.

1. Transparency Issues
I have attempted to get answers to my questions from Peter Allan, our president, but they remain unanswered. His response to my email on 09/05/24 was: "To respond to your email, there is great disagreement with it, and there will be no further response." Therefore, I will present my concerns directly to you.

The STATEMENT OF DECISION, case No. SCV-268591, LAWRENCE SIMONS, Plaintiff v. WILD OAK HOMEOWNERS' ASSOCIATION was ruled by the Court in Simons favor in May 2024. The HOA objected to the ruling; however, it was overruled by the court. There are currently more outstanding Davis-Stirling violations by the HOA scheduled in court for June 2025.

Moreover, we have not received any updates from the board on any other pending matters related to the lawsuit we lost. I also understand that the board is considering an appeal for the May 2024 court decision to take place in San Francisco with a jury in 2025. After reviewing the court decision, do you believe it's worth risking increased liability, higher insurance premiums, and other consequences by continuing the litigation in San Francisco next year?

We have also lost our insurance with Farmers. While the president previously stated that "the lawsuit is still covered by Farmers until it is settled," there is still a lack of clarity
regarding future coverage and the implications of the recent judgment against our association. I am currently unable to determine the extent of our present insurance, particularly concerning liability, which is crucial for our common interests. I also do not know if we have a new insurance carrier to replace Farmers.

After reviewing the court judgments and associated documents, do you believe it's worth risking increased liability, higher insurance premiums, and other consequences by continuing the litigation in San Francisco next year?

I also seek clarification on our current insurance situation. It seems likely that our next insurer will consider our history of mismanagement, potentially leading to even higher rates. The board must take into account how increased insurance costs will impact any plans for further litigation risks in 2025.

After over eight years, why isn't the board considering the homeowners' interests? Legal costs for both sides may reach as much as $1,000,000 if this litigation continues.

I have experienced effective company oversight for condominiums with the Florida Condominium Act.  Their services helped to prevent issues similar to those we currently face under the Davis-Stirling Act in California. We have already paid $25,000 to settle one suit, with another pending resolution in 2025. Is our insurance going to cover that as well? This kind of oversight protection can be expensive, but the cost of losing lawsuits could be a lot more.

2. Future Costs and Insurance Coverage
What are the accrued future estimated costs for our association? Given our litigation history, it's reasonable to estimate legal costs could be around $500,000 for each side.

• Current insurance Coverage: What is our status after the cancellation by Farmers? We do not know.

• Insurance Representation: Who currently represents     

• WOHA for our insurance needs beyond the lawsuit? We   do not know what our insurance coverage is.

• Future Legal Expenses: What are the estimated legal    expenses to date, and what might the costs be to settle    with the Simons suit that insurance does not cover if  litigation continues in 2025? We do not know.

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3. Specific Concerns: Insurance

• What does Farmers currently cover after formally cancelling WOHA?

• Who represents WOHA for our insurance needs now?

• What are the pending liabilities after the lawsuit settlement?

• What are the worst-case costs for all legal expenses to date?

• What is the estimated liability to settle with the Simons that is not covered by insurance?

• Do we have liability insurance currently?

• What will it cost to replace our previous insurance coverage?

Thank you for your attention to these matters.

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