Friday, October 26, 2012

Litigious Coto de Caza Homeowners Association

Updated 10-29-2012: corrected reference to case: 30-2010-00348142-SC-SC-HLH

Posted By CotoBlogzz


Coto de Caza, CA – It has been widely known and publicized that ever since Robert Varo took control of the largest homeowners association in Coto de Caza, the  CZ Master Association board of directors,  with direct support from Mr. James Harkins, the CZ Master Association board of directors has failed to comply with SB-61, SB1560 and  failed to abide by the business judgment rule, aka good faith, enabling Mr.  Varo et al to rule the community with impunity for over ten years.

Although optional under Corp. Code §7615(a), the Davis-Stirling Act makes cumulative voting mandatory if called for in an association's governing documents. Civil Code §1363.03(b), the spirit of  SB-61 and SB-1560 is for direct popular election of the board of directors.

According to all the experts we have talked to, not only there are no true benefits to cumulative voting but they also recommend associations amend  governing documents to eliminate cumulative voting to make elections easier to conduct and to makes it easier to replace dysfunctional directors.

Also, consider that  there is not a single municipal, county, state, or federal election that uses cumulative voting.  Cumulative voting was intended for stock corporations so small shareholders would have a voice. Otherwise, companies would be completely dominated by large shareholders. Cumulative voting is automatically included in a new homeowners association's bylaws so as to give owners a voice when the association is controlled by the developer. Once the developer is out of the picture, there is no need for cumulative voting.

The problems with cumulative voting far outweigh any theoretical benefit related to minority interests. Cumulative voting makes it easy for disruptive, fringe, and single-issue candidates to get on the board. Moreover, once a bad director has been elected, cumulative voting makes it almost impossible to  remove that director from the board. With conventional voting, i.e., casting one vote for each candidate, candidates must seek a broader base of support thereby increasing the likelihood that more moderate, business-like candidates are elected. If a director is dysfunctional out of control, a conventional (non-cumulative) voting system allows the membership to more easily remove and replace that director.

But wait, there is more – anecdotal evidence indicates that the CZ Master Association freely uses legal resourcesto stifle dissent.  But even armed with this information, we were not ready to see the vast differences between the CZ Master Association and its neighbors litigious activity: Since 2007, the Varo/Yocham CZ board has filed 165 cases with the Orange County Small Claims Court, compared to SAMLARC, with zero records, while the latter is more than 5 times as large, followed by Dove Canyon with 15 cases filed for the same period and five for Ladera Ranch.

The Rancho Santa Margarita Landscape and Recreation Corporation, or SAMLARC comprises roughly 13,000 units and maintains most streetscapes, medians, parks and trails within the community. In total, SAMLARC runs and maintains 13 parks, 4 pools, a lagoon, a lake, and numerous trails within the community. One of SAMLARC's most popular parks, Central Park located next to City Hall, contains a large amphitheater where a number of community events are held each year. Central Park is also home to an arena soccer rink that was converted from a roller hockey rink. SAMLARC also maintains a popular skate and dog park that are located within SAMLARC's Canada Vista Park.



Dove Canyon is a private residential community located in eastern Rancho Santa Margarita with approximately 1,200 homes and 5,000 residents.

The CZ Master Association is the largest homeowners association in Coto de Caza with approximately 3,400 homes.




Cases filed with the OC Small Claims Court






Heck, the Varo/Yocham CZ board of directors even filed a Small Claims Court action against Coto CAN - the Coto Community Action Network! - The obvious conclusion is that if you live in the CZ Master Homeowners Association, you better check your personal opinions at the gate, otherwise be ready to face the judge – not a good idea.  More on a judicial misconduct tracker later.



Cases filed with the OC Small Claims Court


Case Number Participant Participant Type Filing Date
07SS00278 CZ MASTER ASSOCIATION PLAINTIFF 2/1/2007
07SS00277 CZ MASTER ASSOCIATION PLAINTIFF 2/1/2007
30-2010-00371746-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 5/5/2010
30-2007-00010110-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/27/2007
30-2007-00010115-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/27/2007
30-2010-00344485-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/8/2010
30-2007-00010959-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 5/10/2007
30-2007-00009947-SC-SC-HLH CZ MASTER ASSOCIATION DEFENDANT 4/27/2007
30-2007-00010315-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/27/2007
30-2007-00019767-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/6/2007
30-2008-00224614-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 11/21/2008
30-2009-00269187-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 5/15/2009
30-2007-00019349-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/6/2007
30-2008-00224607-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 11/21/2008
30-2007-00019355-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/6/2007
30-2007-00019408-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/7/2007
30-2007-00019412-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/7/2007
30-2007-00019415-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/7/2007
30-2010-00354005-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/9/2010
30-2010-00357553-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/12/2010
30-2007-00023032-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/18/2007
30-2009-00294554-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/12/2009
30-2009-00324209-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 11/9/2009
30-2010-00344497-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/8/2010
30-2010-00354018-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/9/2010
30-2010-00355482-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/9/2010
30-2007-00033112-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 12/17/2007
30-2007-00033126-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 12/17/2007
30-2007-00033138-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 12/17/2007
30-2008-00060224-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/8/2008
30-2008-00060238-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/8/2008
30-2009-00320882-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 11/9/2009
30-2012-00583050-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/5/2012
30-2012-00583062-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/5/2012
30-2012-00582984-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/5/2012
30-2012-00583011-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/5/2012
30-2008-00060250-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/8/2008
30-2008-00060161-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/8/2008
30-2008-00066549-SC-SC-HLH CZ MASTER ASSOCIATION DEFENDANT 5/6/2008
30-2008-00086934-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/23/2008
30-2008-00086962-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/23/2008
30-2008-00087189-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/23/2008
30-2009-00275627-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 6/10/2009
30-2009-00275702-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 6/10/2009
30-2008-00097367-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/2/2008
30-2008-00097375-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/2/2008
30-2008-00217054-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/27/2008
30-2008-00217063-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/27/2008
30-2008-00217084-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/27/2008
30-2008-00217102-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/27/2008
30-2008-00094404-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2008-00094420-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2008-00094164-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2009-00275644-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 6/10/2009
30-2008-00094171-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2008-00094182-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2008-00094214-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2008-00094238-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2008-00094375-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2008-00094380-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2008-00094383-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2008-00094390-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/20/2008
30-2009-00246030-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/18/2009
30-2009-00246064-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/18/2009
30-2009-00259893-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/1/2009
30-2009-00246092-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/18/2009
30-2009-00246107-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/18/2009
30-2009-00259996-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/1/2009
30-2009-00259903-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/1/2009
30-2009-00259882-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 4/1/2009
30-2009-00246123-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/18/2009
30-2009-00243534-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/9/2009
30-2009-00243491-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/9/2009
30-2009-00243500-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/9/2009
30-2009-00320892-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 11/9/2009
30-2010-00389738-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/13/2010
30-2009-00243563-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/9/2009
30-2009-00269257-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 5/15/2009
30-2009-00243505-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/9/2009
30-2009-00243570-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/9/2009
30-2009-00320904-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 11/9/2009
30-2009-00243576-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/9/2009
30-2009-00320917-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 11/9/2009
30-2009-00243511-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/9/2009
30-2009-00320925-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 11/9/2009
30-2009-00250970-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/10/2009
30-2009-00250960-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/10/2009
30-2009-00290365-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/5/2009
30-2009-00290419-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/5/2009
30-2009-00294646-SC-SC-HLH CZ MASTER ASSOCIATION DEFENDANT 8/20/2009
30-2009-00294542-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/12/2009
30-2009-00294673-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/12/2009
30-2009-00290403-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/5/2009
30-2009-00294683-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/12/2009
30-2009-00290431-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/5/2009
30-2010-00383646-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 6/14/2010
30-2010-00402045-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/9/2010
30-2010-00402345-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/9/2010
30-2010-00392728-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/20/2010
30-2010-00402332-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/9/2010
30-2010-00402033-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/9/2010
30-2010-00392489-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/20/2010
30-2009-00290450-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/5/2009
30-2009-00302915-SC-SC-HLH CZ MASTER ASSOCIATION DEFENDANT 9/17/2009
30-2009-00317831-SC-SC-HLH CZ MASTER ASSOCIATION DEFENDANT 11/5/2009
30-2010-00335660-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 1/6/2010
30-2009-00331255-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 12/22/2009
30-2010-00355485-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/9/2010
30-2010-00344526-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/8/2010
30-2009-00331382-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 12/22/2009
30-2010-00335695-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 1/6/2010
30-2010-00335676-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 1/6/2010
30-2010-00359399-SC-SC-HLH CZ MASTER ASSOCIATION DEFENDANT 4/2/2010
30-2010-00413426-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/30/2010
30-2010-00413414-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/30/2010
30-2010-00413435-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/30/2010
30-2010-00425470-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/29/2010
30-2010-00425027-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/29/2010
30-2010-00425028-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/29/2010
30-2010-00425029-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/29/2010
30-2010-00425473-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/29/2010
30-2010-00425467-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/29/2010
30-2010-00425472-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/29/2010
30-2010-00432264-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 12/6/2010
30-2010-00431759-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 12/6/2010
30-2011-00446413-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 1/27/2011
30-2011-00446477-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 1/27/2011
30-2011-00450116-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/8/2011
30-2011-00446520-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 1/27/2011
30-2011-00465973-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/30/2011
30-2011-00465974-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/30/2011
30-2011-00465975-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/30/2011
30-2011-00465972-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 3/30/2011
30-2011-00479471-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 5/23/2011
30-2011-00478458-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 5/23/2011
30-2011-00478921-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 5/23/2011
30-2011-00478858-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 5/23/2011
30-2011-00478938-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 5/27/2011
30-2011-00479515-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 5/23/2011
30-2011-00494941-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/26/2011
30-2011-00494924-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/26/2011
30-2011-00494962-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 7/26/2011
30-2011-00507066-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/8/2011
30-2011-00507080-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 9/8/2011
30-2011-00523291-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/31/2011
30-2011-00523307-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/31/2011
30-2011-00523313-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/31/2011
30-2011-00523324-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 10/31/2011
30-2012-00540426-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 1/13/2012
30-2012-00540430-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 1/13/2012
30-2012-00540435-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 1/13/2012
30-2012-00546036-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/14/2012
30-2012-00546038-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/14/2012
30-2012-00546041-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/14/2012
30-2012-00546043-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 2/14/2012
30-2012-00570806-SC-SC-HLH CZ MASTER ASSOCIATION DEFENDANT 5/21/2012
30-2012-00593846-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/22/2012
30-2012-00593864-SC-SC-HLH CZ MASTER ASSOCIATION PLAINTIFF 8/22/2012
30-2010-00348142-SC-SC-HLH CZ MASTER ASSOCIATION COTO CAN DEFENDANT 2/25/2010



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May 12, 2007 

Possible Scenarios and the Keystone Effect 

As a former CZ Board Member and concerned citizen, I can say without condition that Bob Varo and Jerry Mezger should not be re-elected to the CZ Board because they do not understand the foundation concepts of Board Member fiduciary responsibility, ethical behavior and conflict of interests. To be more specific and to demonstrate what I am saying Varo and Mezger should not be re-elected for the following 11 reasons: 

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1 comment:

JL "Buzz" Aguirre said...

And the trend continues with the Xochitl Yocham's HOA: http://cotobuzz.blogspot.com/2016/02/coto-de-cazas-litigious-hoa-property.html