Leisure World Group Prevails

A group of Leisure World residents seeking to shed light on the finances of the Seal Beach retirement community scored another court victory Friday.

Upholding his earlier ruling, Orange County Superior Court Judge Derek W. Hunt again ordered community officials to pay $2,650 in penalties and legal fees to the group of eight residents.

“It’s time to get this out of the way,” Hunt told representatives of the Golden Rain Foundation, an umbrella group that governs the 9,000-resident community.

“If I haven’t lit a fire under you already, take this to heart,” he said. “This set of cases is going to start costing Golden Rain some money.”

For months, Golden Rain officials had refused residents’ requests to review financial records. The residents wanted to know why monthly fees had increased, the salaries of chief administrator Habir “Bill” Narang and other executives, and what the foundation pays contractors.

After months of stonewalling by Golden Rain, the residents sued for access to the records. Judge Kirk H. Nakamura called Golden Rain’s position “unreasonable,” and fined the board $1,400. He urged residents to keep asking for the information.

Golden Rain appealed, but the appeal was denied. Golden Rain ignored a second round of requests and was fined a second time.

On Friday, its representatives were back in court appealing that decision.

Golden Rain’s attorney, William Williams, argued that the requests were the same and that the foundation is acting in good faith, and, in September, granted access to the books.

“We have paid a penalty for that already,” Williams said. “We shouldn’t pay a second penalty. ... [Golden Rain] cannot really stand and be harassed by these eight people. We’re trying to protect all of the other [residents] from the actions of these eight.”

He reiterated Golden Rain’s position that it is not a homeowners association and is not subject to the Davis-Stirling Act, which gives members access to financial information. A lawsuit on that issue is pending in Orange County Superior Court.

But Steven P. Rice, an attorney defending seven of the eight dissident residents, said Golden Rain turned over the information only after months of wrangling and after the residents found legal representation.

“The purpose of Davis-Stirling is so that people like my clients don’t have to wait months and months and months,” Rice said. “They’re honest, decent people who are just trying to get some information.”

After Hunt ruled in their favor, resident Kornelia M. Brewer said, “I think it’s great. This way they will know that we mean business. They think it’s just child’s play.”

Brewer acknowledged that only eight residents requested the information, but she said they are supported by others who are afraid to speak out.

But Shirley Burns, president of the Golden Rain Foundation board, said the majority of the community is satisfied with how it is being run.

“This is disturbing the harmony of Leisure World,” Burns said. “Residents are all coming up to me and telling me they’re sorry I have to go through this.”