December 17, 2008

Meeting with Attorneys from hellmuth & Johnson

Board members in attendance: Dick Merrill and Mark Haywood

Meeting began at 7:05 pm

Rob Keena, esq. & Kathleen Loucks esq. of Hellmuth& Johnson were introduced by Cindy Pederson of Cedar Management.

Rob began presentation regarding statute of limitationsregarding builder liability

He explained the years available to either individual vsassociations

Dick Merrill confirmed that the association is responsiblefor stucco and exterior elevations

Dr. Harvey wants to have attorneys look at our by-laws

Kathleen explained that sub-contractors of the generalcontractor (Gorham) have installed the windows incorrectly and also may havestucco defects due to incorrect thickness when it was applied originally. The Zachauhome was inspected and the inspection confirmed this. Also, several homeownerssaid they had windows that leaked.

Rob also gave a quick biography of both of their experienceincluding noting that they were also defense lawyers originally.

Attorneys explained how the insurance company decides todefend their client. The insurance company through their attorneys wait for theengineering and testing to be done and hen make a personal visit to the home orhomes that are defective and begin to pick away at the findings. Rob advisedmost carriers try and selectively pick certain defects and try and blame themsometimes on the homeowner. Example would be having the humidity set to high inthe house or not having their air exchange set correctly.

Various owners said they had window leaks-atty explainedthat is how the insurance company decides limitations for their defence

Orv asked about arbitration. Individual owners vs.association right of actions including lawsuits and potential court case. Robexplained the benefits of an association action vs. an individual lawsuit.

Rob asked how many homes have been tested? Three homeownersconfirmed they have had testing. Rob then explained how the tests are conductedvia electrical probe and engineering testing including inspections.

Kathleen explain that the home she inspected are improperly stuco’dthat she had personally inspected.

Rob explained discoloration under windows in length withpossible reasons.

Jim Ysseldyke asked Rob “what is the problem”? Rob advisedit most likely is improper window installation!

Rob said all owners should disclose possible defects ifthey sell their homes if the homes are not repaired.

Rob also advised not to re-stucco but use a different finishproduct. He suggested hardyboard.

Rob gave us “free advice” that everyone who has not beentested should be.

Rob advised bring the claims now and have all the homestested in April ‘09

Kathleen explained the engineering program and what theprocedure would be if defects are found and remedies etc.. The attorney thengoes ahead and starts procedures to remedy the defects. They explained theybegin by getting several bids from qualified contractors who specialize in thisbusiness. They also start negotiations with the insurance carriers to bring thematter to a positive conclusion for the homeowners based on what needs to befixed etc. Depending upon number of houses that are defected then decision madewith regards to siding of the repaired homes stucco vs. board. Without otherhomes being tested it is impossible to determine if enough funds would beavailable to change the exteriors. This would be done once we have an exactnumber of homes that need repairs if any?

Ysseldyke wanted to discuss costs individual vs association

Rob advised total costs would be cheaper via association$2000 vs $20000 individually

The association via assessment pays all costs from theassociation

Rob advised claims should be made now and have testing donein the Spring ‘09

Ysseldyke had his home inspected 12/08/08 and Rob advisedthat is a pretty dry time and advised him to have his home tested again

Orv Braaten asked if any one in the association would NOTwant to go forward? No one raised their hand in attendance

Cindy asked if there were any more questions of theattorneys. If not they will leave and the association members in attendance canbegin discussing options. A couple of more questions were answered. Kathleenhas offered booklets and business cards to each attendee.

Rob advised that both state and local building inspectorsare exempt from lawsuits

The attorneys left @ 8:20 pm

Owners in attendance discussed general questions

Dick Merrill is explaining how to assess for the legal fees,testing, etc.

Cindy stated that the best way to handle the appointment ofthe lawyers is to send out a questionnaire via mail asking homeowners to voteon how to proceed?.

General questions regarding costs for inspections,engineering & legal fees.

4 homes have been tested and found to be defective Miller,Zachau and Ysseldyke and Merrill.

Meeting ended