Lawyer for the Vice President and Treasurer, William Kulick has filed a second motion for contempt and sanctions in the legal action to determine if, under the bylaws of the Diamondhead Country Club and Property Owners’s , the treasurer has the right to engage a forensic auditor to investigate the skyrocketing loses at the Diamondhead Country Club.
The motion was filed as an answer to the board of directors’ motion to dismiss the action brought by DHCC&POA Treasurer, Mike Schaefer and Vice President Jerry Weber. This is the second motion for contempt filed by the officers against the directors. The first motion for contempt filed by the Treasurer and Vice President on October 12, 2015 was in response to the board of directors passing a motion to withhold payment from the two officers attorney despite agreeing to allow the action to proceed to court.
The attorney for the directors had agreed to a restraining order that stipulated that a hearing was to be set on the matter of the powers of the Treasurer. The agreed order set a date for both sides to submit briefs. A brief has yet to be filed by the attorney for the directors. Instead a motion to dismiss was filed contending that the Treasurer, Mike Schaefer, lacks standing to file litigation to determine his duties. The motion to dismiss was filed despite the fact that the director’s attorney agreed to proceed with the case in the original restraining order.
The proceedings have now been put on hold, awaiting the Mississippi Supreme Court to appoint an special Chancellor to hear the issue since all four local judges have recused themselves from hearing the case.