DHCC&POA Attorney: Phase 2 Covenants End in 2020

The Diamondhead News Online has obtained copies of emails concerning the covenant expiration schedule. The first is an email, dated September 13, 2019 from Dick Nolan, who at the time of its writing, was a member of the board of Directors of the Diamondhead Country Club and Property Owners Association, August Rechtien, the “in house ” attorney employed by the Diamondhead Country Club and Property Owners Association and Carl Joffe, attorney for the original developer, the Purcell Corporation.

In the first email,  Rechtien  gave his opinion of the schedule of expiration of covenants. The covenants of the Diamondhead Country Club and Property Owners Association have begun to expire after a fifty year term. A controversy has arisen concerning when certain areas, known as phases would expire and be required to pay dues. Some property owners have contended that the covenants and thus dues for Phase 2 (Phase 11) would not end until 2022 which is contrary to the opinion of the in-house attorney of the Mississippi non profit corporation. Rechtien contradicts that assertion in an email dated September 13, 2019: “the Phase 1 Covenant entered into on June 17, 1970, state in Section 1, Term, that all of the terms of that covenant shall affect each of the lots on the attached plat map (see plat map for phase 2) and will expire 50 years from the date of recordation of the Phase 1 Covenants document. …” Rechtien also stated ” Based on this analysis, I believe the accurate covenant expiration chart is attached.”  Referencing a PDF file with two pages attached that was prepared by Carl Joffe. Titled “DIAMONDHEAD RESTRICTIVE COVENATNS “FILED FOR RECORD”” it clearly states in item 10 that Phase 2 covenant expire on June 18, 2020.

In a second email also dated September 13, 2019, addressed to members of the now defunct “2020 Committee”,  Nolan is seeking clarification of covenant expiration dates, that were prepared by Joffe. He states “Someone needs to investigate and inform the membership on which recap is right and which is wrong.”

Recently, calls have been made to have a practicing attorney give their legal opinion concerning the expiration schedule of Diamondhead restrictive covenants and dues obligations.  Obviously, August Rechtien had delivered such an opinion in September of 2019.

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