Assets of Diamondhead POA in Jeopardy

The Assets of the Diamondhead Country Club and Property Owners Association (POA) are in jeopardy!

The POA Board of Directors has had two past presidents who have assaulted owner-members, while performing their official duties as president.  Both were found guilty of assault in a Court of Law, and were fined.  Both continued to serve on the Board with no disciplinary action taken by the other board members.  One past president is still actively serving as exofficio.  This gives the appearance that violent behavior committed by a board member is common practice and is assumed to be Board approved activity since nothing has been done to remove the offender.

As a Business Management graduate from Cal Poly, San Luis Obispo, retired Naval officer, and 22+ years as Director of Risk Management for a publicly traded Real Estate Investment Trust owning malls and shopping centers, commercial buildings and apartment complexes covering five states.  My experience with risk management gave me the knowledge to do a little homework on what could become a major problem for Diamondhead property owners.

All Liability Policies, including policies covering Boards of Directors, contain clauses that address actions that are not covered by the policy.  Deliberate assault, especially if the perpetrator is found guilty and fined in a Court of Law, is one of the activities not covered under liability policies.  Knowing this, I pulled in some favors and found the insurance company that carries Diamondhead’s Officers and Director’s liability policy.  I called them.  The executive representative with whom I spoke, could not tell me what

Elton M. Kyger

Elton M. Kyger, former president of the Diamondhead County Club and Property Owners Association, was convicted of assaulting a member last year during his tenure as president. He remains on the board as an ex-officio,

action on coverage they would or could take, if another act of violence committed by a board member occurs in the future.  He did say, however, that it appears the Diamondhead POA Board has serious moral and ethical problems that require immediate remedial action!

The representative did say the carrier would investigate any future claim and would make a decision on coverage at that time.  The insurance carrier is now informed as to the violent actions and serious infractions made by two past presidents of Diamondhead’s Board of Directors.  My personal experience tells me no insurance company, knowing this history, would honor coverage should future violent acts be committed by a Board member.  The individual property owner-member could be assessed by the POA Board to fund any damages found by a Court of Law.  The only recourse property owner-members would have to recover their loss is to sue the POA Board, individually, for their failure to honor their sworn fiduciary responsibility to the people of Diamondhead.

If the POA Board chooses not to act immediately by ridding itself of law-breaking bullies, they fail to uphold their fiduciary responsibility to this community.  It is time they do what they were elected to do.  The offending past-president must GO!

Gary E. Longanecker

 

About the Author

Gary Longanecker
Gary Longanecker is a retired Naval Officer after 22 years of Naval service. He served as the Commanding Officer, Navy and Marine Corps Reserve Training Center, Fresno, California. In 1971, he drafted the original document that was used to reorganize the Naval Surface Reserve into the force that augments the Regular Navy today. During this assignment his main job was to manage nationally twelve Naval Reserve personnel training programs that consisted of 33,000 personnel and developed these program’s training requirements. In the mid-1970s, He served as Commanding Officer, Naval Facility, Grand Turk, BWI. This facility’s mission is classified. In the early 1980’s, He served as the Director of Man Power for the Eleventh Naval District located in San Diego, California. The Eleventh Naval District area of responsibility covers the Southern half of California and the states of Arizona and Nevada. While in that position, Gary had the honor to lead the number one rated Naval Recruiting organization in the nation. During that assignment he changed and improved the national policy of how new recruits are assigned their Naval billets. He was specifically chosen by the Secretary of the Navy’s’ office to redesign the methods and put in place the procedures to recall Naval Reservists and Naval Retired Personnel to active duty in time peril which required rapid movement of personnel. His civilian employment involved aviation and real estate. He was the Senior Executive Vice President for Sizeler Property Investors, a Real Estate Investment Trust (REIT) that traded on the New York Stock Exchange. He held the positions as Director of Human Resources and Director of Risk Management.

1 Comment on "Assets of Diamondhead POA in Jeopardy"

  1. Very well said Gary. Board directors shouldn’t be allowed to assault dues paying members. Voting yes on proposition 3 at the annual meeting on June 20th will be one step in the right direction. It will allow us to vote the bad directors off the board.

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