Lake Forest
Management Messages
Message from the General Manager-January 2019
 
Litigation Settlement Disclosure-LFCA v. Lake Forest et al.
Orange County Superior Court Case No. 30201500823671
 
The Association is pleased to disclose that it has reached a favorable global settlement of all
claims raised in the Action by and against the Association. The essential terms of that settlement are:
 
• The Association will receive a total sum of $910,000 from the defendants and cross defendants
to resolve the Association’s claims concerning the Large Lake;
 
• The Association’s insurer, Farmers, will pay $200,000 to the City to resolve the City’s claims
against the Association concerning Veterans Park (formerly known as Village Pond Park) and the
various storm drains on the Association’s Common Area;
 
• The July 20, 1976 Agreement concerning the Association’s partial responsibility for Veterans
Park (formerly known as Village Pond Park) is immediately terminated and the City will be solely
responsible for all aspects of that park;
 
• The City will transfer ownership of the Forest Knoll runoff inlet and pipe to the Association,
after which the Association will be responsible for the same; and
 
• The Association will make a one-time payment of $36,000 to the City for prospective cleaning
of the storm drains on the Association’s Common Area.
 
The above settlement terms resolve a variety of difficult ongoing disputes between the
Association and the City, thereby allowing the resumption of a positive working relationship between
the parties. The Association and the City are finalizing a further agreement setting forth the logistics
involved for the implementation of the above settlement terms.
 
The Association has contracted for the remediation of the Large Lake and clearing of the impacted
storm drain pipe to occur over the coming months. The Association’s contractor will use best efforts
to minimize any inconvenience to the Association’s members and residents during that work.
 
We would be remiss not to note the extraordinary amount of time and assistance provided by the Association’s General Manager, Julie Carter, and her staff, and the Litigation Subcommittee created by the Association’s Board of Directors for the Action. These individuals’ contributions were vital to achieving the favorable settlement outlined above.
 
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