Judge opens Leisure World’s record books

Residents are legally entitled to review financial and other records from the management company that runs Leisure World, one of the nation’s first and biggest retirement communities, a judge ruled.

The decision Monday by Orange County Superior Court Judge Ronald Bauer ends a series of small-claims lawsuits by seven residents in Seal Beach’s Leisure World in the last four years. The group alleged that the complex’s management company, Golden Rain Foundation, was a homeowners’ association and was required to provide access to its books under state law.

Golden Rain, however, maintained that it was a nonprofit management consultant hired by the 16 self-governed residents associations that make up Leisure World.

Bauer had previously issued a tentative ruling in the plaintiffs’ favor. On Monday, he rejected an appeal by Golden Rain attorneys to reverse the initial ruling.

“This ruling shows that homeowners everywhere can fight the system and win,” said lawyer Steve Rice, who represented the residents.

Golden Rain attorneys declined to comment.

The group of residents filed its first small-claims lawsuits against Golden Rain in 2003 to gain access to accounting ledgers, income tax filings and office phone bills. Most court rulings were in the residents’ favor and Golden Rain produced many of the requested documents, but in 2004 the management company filed a civil countersuit seeking to block future small-claims lawsuits by the residents.

That case dragged on for nearly three years.

“We have paid a tremendous price for principle,” said 78-year-old Leisure World resident Ed Loritz. “It’s been a very stressful time.”

Leisure World dates to 1960 and has about 9,000 residents.