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SPENDING OTHER PEOPLE'S MONEY

Above all else, our HOA Board members must be good steward's of the HOA's money. The funds in the HOA's account are trust funds that are not to be spent foolishly, and I doubt that any of the members of the HOA Board would believe it wise to spend their own money fighting this fight - why would they? The members of the HOA need to be asking themselves how can the HOA could have spent $7,000.00 with its lawyers at this early stage of the litigation and how can it hope to control its costs once things really get going and this matter spirals out of control?

I recognize that like my fellow HOA members, I will pay roughly 1/150th of the costs of this litigation, and right now that tab is about $40.00 per HOA member based on Mr. Pontrelli's estimate of attorney's fees to date contained in his December 30, 2005 letter. Once available insurance coverage is factored in as a result of the counterclaim I filed, perhaps each member's exposure will be reduced somewhat.

I estimate that I will spend a total of $15,000.00 in mine and my firm's time in contesting this matter, and that my out-of-pocket expenses (deposition costs, postage, etc.) will be another $2,500.00. Things could be a little better or a little worse depending on how the case develops. I have estimated the HOA's fees to be between $30,000.00 and $50,000.00, and that is solely on the basis of the work product that has been produced to date by the HOA's counsel and its representations that the fees currently total in the $7,000.00 range.

To determine if my estimate is an exaggeration, simply look at the HOA's work product to date as compared to my firm's. My firm's total billing to date is approximately $3,000.00, and that covers my Answer, Counterclaim and Third Party Complaint, my Motion to Dismiss, and some discovery requests that I have already put together. Compare the work product and extrapolate the potential costs for yourself, if you do not believe me, and it will become readily apparent to you that this litigation is going to cost much more than it justifies.

High Gables Main