⚖️ Legal Update IX: Docket Activity in Both Lawsuits

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⚖️ Legal Update IX: Docket Activity in Both Lawsuits

Keeping the Membership in the Dark: As noted in our Report on the November 11th Membership Meeting, there was virtually no information provided by the Club Board about the two lawsuits, or their associated legal expenses, in which the Club is currently engaged. Even when asked about some higher-than-normal accounting expenses, the Treasurer allegedly claimed that he could not remember the accounting firm to whom he had just paid $4,000. Was the membership ever even advised the Club would be retaining an accounting firm, let alone for thousands of dollars? The Club could have patched up the Treasurer’s “memory lapse” by identifying the accounting firm in the meeting minutes, perhaps with some explanation, but they did not. This suggests the lack of identification is not a memory problem, but rather an intentional act to conceal this information from the membership. [Read More]

Summary of Recent Filings in Both Lawsuits: The docket in the Hills vs. the Club lawsuit is showing continuing (but slow) signs of resolution with a settlement agreement seemingly forthcoming. However, the Club vs. Kennedy lawsuit shows no sign of letting up, a remarkable condition since the Judge sternly advised the parties to “roll up their sleeves” to work through all remaining discovery production disagreements.

Hills vs. the Club: This lawsuit, filed by Plaintiffs Lloyd and Graham Hill, primarily complained that, after they withdrew from membership, the Club failed to refund the $1,700 Membership Fee as described in the Club’s governing documents in effect when they applied. On November 20^th, Plaintiffs filed a motion requesting to file – under seal – a “Confidential Statement” apparently because this Statement contains some terms that both parties agreed not to make public. [Read More]
The Club vs. Kennedy: This lawsuit filed against former Treasurer Carl Kennedy by the Club in April seems to be a never-ending saga despite the Judge’s urging that the parties “roll up their sleeves” to resolve differences in order to close out this case. The only real winner in this dispute seems to be the Club’s attorney, Edward Holodak, who is racking up countless billable hours (to be paid by Club members from their dues) with every new filing, a reality the Judge observed and even directly counseled the Club’s officers against, warning them of the open-ended legal expenses they would incur by continuing down the path of more filings, motions, and hearings. [Read More]

All Club members should be asking: “To what end?” The Judge made clear that the Club’s complaint against Kennedy is very narrow: The Judge said he had no standing to investigate or rule on unsubstantiated implications that Kennedy stole or misappropriated Club funds, adding that such a claim should have been pursued separately because they were not civil matters before him. The Judge said such allegations would have to be separately investigated and prosecuted in criminal court if the Club had any actual evidence of impropriety. [Read More]

We will update the litigation pages as this case proceeds. Please feel free to continue sending feedback to news-feedback@pompanobeachflyingclub.info or just reply to this newsletter. Below are some quick links to the main areas of our web site.

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