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Welcome!� To The Introduction Of� The Consolidated Legal Fund

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Consolidated Legal Fund

  • Recognizing the need

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Consolidated Legal Fund

  • Recognizing the need
  • Researching a solution

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Consolidated Legal Fund

  • Recognizing the need
  • Researching a solution
  • Defining the organization

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Why Is The Fund Needed?

Dependent upon park owners

    • They must meet needs specified in prospectus

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Why Is The Fund Needed?

Dependent upon park owners

    • They must meet needs specified in prospectus
    • Old days of Mom & Pop park owners gone

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Why Is The Fund Needed?

Dependent upon park owners

    • They must meet needs specified in prospectus
    • Old days of Mom & Pop park owners gone
    • More parks owned by multi-park conglomerates
      • Equity Life Style – Chicago, IL
      • Sun Communities – Southfield, MI
      • Hometown America – Chicago, IL
      • New investors buying parks at inflated prices

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Why Is The Fund Needed?

Lack of leverage with park owners

    • Legislation is very difficult to pass

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Why Is The Fund Needed?

Lack of leverage with park owners

    • Legislation is very difficult to pass
    • Legal system remains ultimate leverage

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Why Is The Fund Needed?

Lack of leverage with park owners

    • Legislation is very difficult to pass
    • Legal system remains ultimate leverage
    • Entering the legal arena is very expensive
      • Most individuals and HOA’s can’t afford it
      • Park Owners know that and use it to their advantage
      • Encourage use of County Courts for small claims

(under $30,000)

      • Fund is not used for disputes between

Members and the HOA

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Florida Courts Jurisdiction

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County

Courts (67)

Circuit

Courts (20)

District Courts

Of Appeal (5)

Supreme

Court

Construing the validity of statutes

Construction of Florida or�U.S. Constitution

Decisions affecting a class of constitutional or Statutory Officers

Certified questions of conflict

Conflict with another district court of appeals decision

Questions certified by the county court

County court decisions >$15,000

County court decisions declaring a statutory or constitutional provision invalid

  • Constitutional questions
  • Capital cases
  • Bond validations
  • Public utility cases
  • Questions of law certified by the �U.S. Supreme Court or U.S. Court of Appeals

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  • All matters not directly appealable to the Supreme Court of a Circuit Court
  • Administrative actions if provided by law
  • Felonies
  • Family Law
  • Civil cases >$30,000
  • Probate, guardianship, mental health
  • Juvenile dependency, delinquency
  • Appeals of certain county court and administrative decisions

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  • Misdemeanors
  • Civil cases <$30,000
  • Small claims <$8,000
  • Traffic

Florida Judicial System

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Researching a Solution

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Establish a Legal defense “Super Fund”

    • Accessible by the contributing HOA’s.

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    • This pool of money could be made available as a grant after an application process to vet the viability of the litigation.

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    • There would be restrictions, for example, it would not be available for mediation or individual park rent disputes which are�clearly defined in their prospectus.

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Researching a Solution - How?

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Legal defense “Super Fund”

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    • Creates a deterrent to owner lawsuits

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    • Managed by a committee of volunteers�from both the FMO and HOA’s with diverse�experience in law, business and finance.

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Organizational Structure

What form best serves members?

      • 501(c)(3) Non-profit

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      • FS 617 Not-for-profit

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      • LLC

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      • Wholly owned subsidiary

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      • Standing Committee

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Organizational Structure

FMO Standing Committee

    • Reduced start-up costs

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    • Reduced annual operating costs (insurance)

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    • Quickest to implement

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    • Can be “upgraded” in future if needed

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Organizational Structure

Committee Structure

    • 9 Member Management Committee

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      • 3 HOA Presidents / Past Presidents

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      • 2 FMO District Presidents

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      • 2 FMO Board Members

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      • 1 FMO Treasurer (non-voting)

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      • 1 FMO Legal Counsel (non-voting)

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“The mission of the committee will be to assess the need to support legal actions that will have significant impact statewide, or within a county or municipality that may result in appellate precedent of law.”

Mission Statement

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Financial Structure

Funding Strategy

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    • Funded 100% by subscriber HOAs

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    • Objective - $250,000

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    • Self Sustainable

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    • Currently $135,000 with 44 HOA’s Enrolled

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Payment Schedules

Flexible Payment Schedules Available

    • Option 1
      • One time payment upon contract signing $3,000
    • Option 2
      • Initial payment of $1,000 on contract signing, $250 on April 1 & $250 on December 1 for 4 years.
    • Option 3
      • Initial Payment of $300 on contract signing, $300 on April 1 & $300 on December 1 until the total $3,000 is paid.

In the event installment payments are not paid�the HOA will no longer be a member of the fund.

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Key Growth Strategies

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The CLF will message the benefits of joining the family of HOA participants through

    • District presentations
    • Park presentations
    • Informational material at www.fmo.org

Our strength is in our membership numbers �and our available resources.

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Growth Strategy

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Maintain a Pool of Qualified Attorneys

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      • Experienced with FS 723

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      • State-wide pool

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Litigation Strategy

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Application Prerequisites

    • Potential for Statewide or Regional impact

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    • No single-park issues (HOA vs. member)

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    • Application reviewed by Committee

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    • Complied with mediation prerequisites

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Litigation Strategy

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Frequently Asked Questions

What ownership does the HOA have over the contributed funds once vested in the CLF?

    • None

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What control does the HOA have over which cases the CLF will fund?

      • Very little, the HOA must demonstrate a clear state-wide / regional impact to the CLF committee.

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Frequently Asked Questions

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What happens if the HOA wins a suit and is awarded costs, damages and attorneys fees?

      • The HOA will be required to repay all granted funds, thus replenishing the CLF. �Balance of funds would remain with the HOA.

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Frequently Asked Questions

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What happens if the CLF loses the case?

      • The CLF will never be a litigant.
        • If the HOA loses its case, �funds granted by the CLF will be lost.
        • The HOA will not be responsible for repayment �of the granted funds should the suit be lost.

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Frequently Asked Questions

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What happens if the CLF runs out of money?

      • Members may be assessed an additional contribution.

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Frequently Asked Questions

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What happens if an HOA goes out of business �or a park files change of use?

      • The HOA funds will be retained by the CLF.

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Frequently Asked Questions

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Thank you for your interest in the CLF

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Contact:

Ross Hollander

FMO Director at Large

CLF Acting Chair 239-440-5473

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or

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Ron Thoreson ron@ronthoreson.com

Consolidated Legal Fund