On Tuesday, September 11, 2024, Judge David Freeman entered his final decision in Homestead Litigation (Hillius, et al. v. 18 Paradise, LP, et al.) The much-awaited Findings of Fact and Conclusions of Law, which were presented by the parties on July 26, 2024, were issued by the court. A copy of the court’s final orders is attached below. 

At the conclusion of the July 26, 2024, hearing, court adopted the form of the orders jointly presented by MJ Management, 18 Paradise, and the Intervenors; but the 19-page final orders addressed various issues that had been raised at the presentment hearing and clarified Judge Freeman’s earlier rulings from the bench on July 3, 2024. Much of what was contained in the final orders was what was expected by the parties, but the court addressed with more clarity several issues that will have a direct impact on the Homestead community and some parts of the case moving forward.  

Some of the key takeaways from the court’s decision: 

• The Court found “…that the HOA incorporated by filed with the Washington Secretary of State by Plaintiff’s lawyer, K. David Andersson, and currently governed by Tom Staehr is invalid and defunct.” 

• Plaintiff’s claim for declaratory relief is granted as follows: the Sixth and Seventh Amendments to the Master Declaration are void ab initio. 

• 18 Paradise’s claim for declaratory relief is granted as follows: The Joint Maintenance Fee is restricted only by the timing and increase restrictions set forth in Section 3.5(e) and (f), and the use of the Joint Maintenance Fee is not restricted to only Maintenance of the Common Open Space or any in any other manner. 

• The correct amount of the Joint Maintenance Fee from January 1, 2019, through the entry of this Order is $36.00 per homeowner per month. 

• Lynden’s PRD and RCW 64.90 require a homeowner association to be established in all common ownership communities, which includes Homestead. It is not before the Court to opine further on how to establish a homeowner association here. 

• MJ Management’s declaratory counterclaims are dismissed. 

• The Intervenors request for an injunctive relief on the homeowner association is denied. 

• Most significantly, the order includes language terminating the representation by Plaintiffs’ counsel: “With the entry of these Findings, Conclusions, and Order the representation of Plaintiff’s Counsel, Matthew Davis and K. David Andersson terminates with respect to the class members, except as such representation limited to post-trial motions and appeal. For the purposes of communication, class members may be contacted by counsel for 18 Paradise and/or MJ Management.” 

Plaintiffs counsel indicated in a court hearing on September 12, 2024, that they intend to appeal the court’s ruling, which could drag this case out for an additional year or more. When asked after the hearing, Jeffrey Possinger, one of the attorneys for MJ Management, stated that MJ Management was “considering all of their options.”   

In August, certain members of the Homestead community spoke to the City of Lynden about the state of disrepair at Homestead and parts of the grounds having become a fire hazard; much of which is directly attributed to the protracted litigation. The Homestead Golf Course litigation, which has been ongoing since 2020, will likely continue in some capacity into the foreseeable future, but the court’s decision regarding the limited role that Plaintiffs’ counsel will now play leaves open various questions. Whatever the case may be, the court’s decision marks the end of a significant chapter in litigation that has roiled the Homestead community, located in Lynden, Washington, for the last four years. 

Readers can find additional information, updates, and insights at the Homestead case website.

For media questions, interviews, or any other needs, please contact [email protected].