4/30/2021 Note to Members: An update for our members regarding the ongoing litigation and resort’s response is available here: April 2021 Newsletter and Response
4/22/2021 Note to Members: An official update for our members regarding the ongoing litigation is available here: April 2021 Update
3/2/2021 NOTE TO MEMBERS: Walcott, Henry, and Winston, P.C. has provided an official update for our members regarding the pending litigation: Feb/March 2021 Litigation Summary
After many years of Angel Fire Resort holding back necessary information from the AAFPO Board of Directors that is needed to comply with their responsibilities for AAFPO Members per the legal organizational documents and state Statues, October 20, 2020, AAFPO filed a complaint for Declaratory Judgment, Breach of Fiduciary Duty, with Injunctive Relief in the Colfax County, NM 8th Judicial Court.
AAFPO is the Association of Angel Fire Property Owners, Inc. It is a Non-Profit Home Owners Association that was formed in 1995 after the bankruptcy of Angel Fire Resort. The 9-person volunteer board is elected by its members to assure that homeowners’ rights are protected in accordance with all legally binding organizational documents between the Property Owners and Angel Fire Resort (the developer). The duties of the board are varied but the main duties are to enforce covenants and restrictions and to establish and collect assessment dues for the use of all Common Facilities (Amenities). Currently, AAFPO is the largest Homeowners Association in the state of New Mexico and collects over $6,400,000.00 in assessments per year. This is a big fiduciary responsibility. AAFPO is responsible for the collection of the dues and has contracted Angel Fire Resort as their “management company”.
Angel Fire Resort is a for-profit Company and owner of the Resort. They are a privately owned company based in Texas. Angel Fire Resort has been contracted by AAFPO to collect the assessment dues. Angel Fire Resort is responsible for the upkeep, operation and maintenance of the Amenities based upon payment of the Assessment Dues each year.
This complaint that was a long time coming with many years of the Board needing data from the Resort in order to fulfill their obligations per the legally binding documents. Recent changes to the state of New Mexico homeowners’ act in 2019 make this even more important today.
The complaint is 15 pages long with additional supporting documents.
Below is access to the filed motions and other legal actions so far related to this case.
The complaint (above) covers five counts. These are the issues that AAFPO is asking the court to review and rule on (see “complaint” for details related to these counts):
- Declaratory Judgment regarding the Lawful Constitution of AAFPO’s Board of Directors
- Declaratory Judgment Regarding AAFPO’s Right to Information
- Declaratory Judgment Regarding AAFPO’s Right to Collect Assessment
- Breach of Fiduciary Duty
- Injunctive Relief
Once the board changed over in June of 2020, a formal request was put in by the board to Angel Fire Resort to receive information per the bankruptcy and organization documents (see 3 formal requests sent by the AAFPO Board)
Due to the requests, immediately the Resort challenged the board on “lawful constitution of the board” to stall the process for requests. This necessitated the legal actions by AAFPO.
Below is a list of the Legal Paperwork from AAFPO that has transpired in the case so far:
- Summary of the Resort’s Answer to the Complaint
- Motion for Partial Summary Judgment
- Memorandum and Authorities in Support of Motion for Partial Summary Judgment
- Request for Hearing Filed
- Judge Recusal CV2020183
- Notice of Hearing 0120221
- Reply in Support of Motion for Partial Summary Judgment
- Angel Fire Resort Responses to Motion to Compel
- `Order granting partial motion for summary judgment in favor of AAFPO
- AAFPO Counsel Letter to Angel Fire Resort Counsel regarding Director positions