Residents Win Again in Leisure World Dispute

Leisure World residents have racked up their fifth consecutive courtroom victory in their effort to force the operators of the Seal Beach retirement community to open their financial books.

Though they have turned over some documents, Golden Rain Foundation officials have continued to balk at the rulings.

At issue is whether the foundation is subject to the Davis-Stirling Act, which gives homeowner association members access to financial records. A lawsuit on that matter is pending in Orange County Superior Court.

“We operate under corporation law [and not the Davis-Stirling Act],” said Golden Rain Foundation President Shirley Burns. “We’ve done it for 40 years.”

Small-claims judges are not best equipped to handle the cases, she said, adding, “We’re waiting to have it in Superior Court.”

The latest ruling, by small-claims Commissioner Richard E. Pacheco, was won by David Lyon, one of eight residents who have pursued the matter in court.

“They’re preferring to be ignorant of the law or they’re incredibly arrogant or stubborn -- or all of the above,” Lyon said. “How can they keep ignoring the message?”

Pacheco did not assess any civil fines in Lyon’s case but ordered Golden Rain to produce the records and to cover his legal costs.

Eight Leisure World residents have filed 16 small-claims cases, asking for civil penalties every time the foundation denies their request for records -- including executive salaries and how much contractors are paid.

So far, judges have ruled for the residents in each of three cases and in two of those sided with residents again after the foundation appealed.

In several instances, judges criticized community managers for dragging their feet. In each of the previous cases, the residents were awarded $200 each in penalties, plus legal costs.

The foundation has given residents everything it can turn over without being sued by employees for violating their privacy, Burns said.