By Gail Fry

According to an insurance agent familiar with commercial insurance, due to a rash of recent lawsuits and settlement the Arrowhead Lake Association is at risk of increasing insurance premiums, having fewer choices and/or the inability to find insurance coverage.

According to court records obtained by The Alpenhorn News, the Arrowhead Lake Association (ALA) has had seven lawsuits filed against it since the beginning of 2014; three of those lawsuits are ongoing.

On November 18, 2014, Brian Hall, a current ALA Director, filed a lawsuit against ALA alleging “inaccurate ballot instructions” impacting the September 22, 2014 election. The court found in favor of Hall ordering a new election and ALA to pay $70,000 in attorney fees.

On August 14, 2015, Preston White, et. al., filed a lawsuit against ALA accusing them of discriminating against a mostly African-American family by denying them access to the beach and facilities at Tavern Bay over the July 11-13, 2014 weekend.

Almost three years later, on July 6, 2017, Preston White et. al. filed a request for dismissal with prejudice. “The matter was resolved to the mutual satisfaction of everyone,” their attorney Henning Ruiz confirmed to The Alpenhorn New,s sharing, “I did think this was a situation where ALA was very gracious to our clients.”

On October 9, 2015, Scott Meyers filed a lawsuit against ALA alleging it issued a permit for the construction of a dock where neighboring dock owners contend “they have the right to maintain their docks” effectively preventing the dock’s installation.

Almost a year later on November 7, 2016, Meyers filed a “Conditional” Notice of Settlement of Entire Case. Court records indicate the settlement agreement failed with four parties filing cross-complaints. On August 2, 2017, the court granted a motion to continue trial filed by ALA, setting an October 16, 2017, trial readiness hearing.

On October 15, 2015, ALA Employee Angela McCaskell filed a complaint alleging “wrongful termination.” On February 16, 2017, McCaskell filed a “request for dismissal with prejudice” when a settlement agreement was reached.

On February 11, 2016, Jennifer Schere filed a personal injury lawsuit against ALA alleging general negligence in a boating accident on July 7, 2015, involving an ALA patrol boat where she lost a finger. On October 11, 2016, a Request for Dismissal of the action with prejudice was filed by Schere. It is unknown whether a settlement was reached; a call to Schere’s attorney went unanswered as of press time.

On October 11, 2016, Harvey Silverman filed a lawsuit against Patricia Smissen over dock rights in Emerald Bay and on June 26, 2017, Patricia Smissen filed a cross-complaint naming ALA as a defendant. A tentative trial date of April 2, 2018, has been scheduled.

The next lawsuit hitting ALA was filed on August 4, 2017, by Investment Group, LLC and Miccaso Group, LLC alleging a conspiracy between ALA and the Arrowhead Woods Architectural Committee (AWAC) regarding AWAC’s authority to charge fees and assessments on Arrowhead Woods Property Owners.

In early January 2017, Attorney Gregory Garrison, formerly representing Brian Hall and Lake Arrowhead Village, became general counsel for ALA after attorney Wayne Guralnick resigned in October 2016.

In an interview with The Alpenhorn News, John Arnold of Goodwin Insurance Inc. explained when a business has numerous lawsuits insurance carriers become “afraid of what might come up” and “gun shy” to “jump on something with known problems” and their current carrier “would probably no longer want to carry their insurance.”

“Due to risk of exposure,” Arnold explained, a business with numerous lawsuits will face higher premiums.