Board Attorney Misses Deadline to File Brief

Documents filed on October 14, 2015 in Chancery Court by William Kulick, Attorney for the Diamondhead Country Club and Property Owners Association’s Treasurer and Vice President, declare that the attorney for the board of directors has failed to file his brief in accordance with the agreed order in the case that will decide if a forensic audit called by the POA’s Treasurer should proceed. Read Kulick’s brief here.

legalDHThe case began when Mike Schaefer, treasurer for the Diamondhead Country Club and Property Owners Association contracted a forensic accountant to investigate losses at the Diamondhead Country Club.  Four member of the Diamondhead CC & POA board of directors blocked the attempt to acquire information necessary to conduct the audit.

A permanent restraining order was agreed to after Elton Kyger, board member via ex-offico,  called a special meeting to prevent the audit.  The order requires that a court appointed entity copy and retains certain financial records of the Diamondhead Country Club and Property Owners Association and restrains the board from convening their special meeting and suspends the forensic audit.  The order stated that the attorneys for the defendants, members of the Diamondhead CC and POA, were required to submit their brief no later than October 12, 2015. As of 5:00 pm on October 12, 2015 no brief from the attorneys representing the board of directors had been filed in the case.  See Chancellor’s Schloegels’ order here

With the ink barely dry on the agreed order, in a regular board meeting,  Kyger made a motion to suspend pay to all attorneys until the matter was settled.  Kyger also led the POA board of directors into an “executive session” despite the fact that no DHCC&POA bylaw or state statute allow for executive session for nonprofit corporations. See September 24 BOD minutes . Kyger also stated that the plaintiffs in the suit may be held liable for any legal expenses if they do not prevail.

What may be pure coincidence, John Fletcher, President of the DCC&POA and originally a plaintiff in the case,  insisted that his name be removed from the filing.

A contempt motion was subsequently filed against Kyger and the board members. Read the POA Treasurer’s motion for contempt here.

About the Author

T. R. Alfonso

Editor and Publisher of the the Diamondhead News Online