Settle Now!
May 18, 2009
Dear Smoke Rise Resident:
Last fall, the Take Action Committee submitted over 135 petitions on your behalf to the Smoke Rise Board of Governors in an effort to stem the ever-increasing legal costs that were included in the 2008-2009 Budget. The budget was approved by the community and included a budgeted total for this year’s legal fees of $60,000.
Now, we are 6 months into the budget year, and there are several items that require your attention:
- The Petitions have been IGNORED with absolutely NO RESPONSE from the Board of Governors.
- The SR Club has already spent more than the $60,000 budgeted for this entire year’s legal fees.
- The SR Club vs. Petrozzino lawsuit has cost over $73,000 in the last three years – this does not include the legal fees of the three attorneys as of February.
- The SR Board approved an open-ended resolution last fall to pay for Jeff Stich’s personal legal defense for inappropriate behavior that the Board’s indemnification insurance policy would not cover. Stich’s attorney charges $450 an hour and there is no cap on this spending. As of February, $21,753 was spent on his defense with much more spent since then that has not yet been reported.
- David Ramsey, the SR Club Attorney, has a $2000/month retainer that will cost an additional $12,000 for the remaining 6 months of this fiscal year’s contract. This is in addition to legal fees billed by Ramsey’s associate who is handling this litigation.
When asked at the April 16th Board Meeting, Bob Roy, SR Club President, stated unequivocally that the
SR Club will pursue this lawsuit by going to trial, and
The SR Club Attorney estimated at least $100,000 additional legal fees for this trial.
The Smoke Rise Club Board of Governors will choose whether to:
- pursue a legal fight, go to trial, and incur unknown future expenses financed by our community; or
- settle this lawsuit and stop incurring any further legal expenses.
Where is this money going to come from?
The Board of Governors will have to reallocate funds from various projects/purchases in order to pay these excessive costs. Will the money come from road paving, property maintenance, or will a special assessment be demanded of us at the end of the year?
What can you do?
It is in every SR resident’s best interest to attend the SR Board meetings held the 3rd Thursday of every month. If you are concerned about how we will pay these mounting legal costs, please:
- Contact your SR Board of Governors and urge them to SETTLE NOW!
- Attend May 21st Board of Governors Meeting 8pm @ SR Inn’s Board Room & voice your concerns.
- Log on to www.srnews.wordpress.com for more details.
Who can you contact?
The Smoke Rise Board of Governors: sr-gov@smokerise-nj.com
The cost of Jeff Stich’s Actions over 3 years
April 17, 2009
This note was authored by Roger Scott, the SR Controller, and sent to the Board of Governors on April 7, 2009.
From the inception of the Petrozzino matter to today’s date, the Club has recorded legal fees, based on the receipt of invoices for services rendered together with related disbursements, in the grand total amount of 73,964. This amount covers legal services provided from May 2007 through February 2009. Of this amount, 4,723 was expensed in the fiscal year ended 9/30/07; 16,219 was expensed in the year ended 9/30/08; and the balance of 53,022 has been expensed this fiscal year.
Included in the grand total of 73,964 is the amount of 21,753 which was incurred in behalf of Jeff Stich’s personal defense. The balance of 52,211 includes 5,968 in legal expenses, including 2,000 in mediation fees, incurred prior to the receipt of the Petrozzino summons and complaint in April 2008. The remainder of 46,243 has been primarily incurred with relation to the Club’s counter claim and motion for summary judgment.
The breakdown is as follows:
| Fiscal 06-07 | Fiscal 07-08 | Fiscal 08-09 | Totals | ||
| Club related: | 4,723 | 13,219 | 34,269 | 52,211 | |
| Jeff Stich related: | 0 | 3,000 | 18,753 | 21,753 | |
| Totals: | 4,723 | 16,219 | 53,022 | 73,964 | |
135 Petitions delivered to the Board Nov. 19th
November 20, 2008
November 19, 2008
Dear Board of Governors:
We do not want our Smoke Rise Club dues spent on the personal legal defense of a governor and we ask that you stop any future payments made for the legal defense of Jeff Stich and that he reimburse the Smoke Rise Club for payments made on his behalf.
We request that you formally acknowledge this appeal and vote on a resolution at the Open Community Meeting on Nov. 20, 2008 to make this petition effective immediately and reverse the Board resolution stating that “Jeff Stich be reimbursed for all fees paid to date and all future payments due to his attorney be paid directly by the Smoke Rise Club”.
Signed,
The Attached Smoke Rise Resident Petitioners.
Please find 135 petitions in addition to individual letters previously sent directly to the Board of Governors regarding this issue. Future petitions will be forwarded accordingly.
SR Employee Salaries
October 17, 2008
Did you know that as a resident, you are entitled to know what each SR employee is paid, and what their benefits are? Since the Board of Governors is considering hiring a Management Company, wouldn’t you like to compare apples with apples by knowing the current numbers? Ask your favorite governor today!
Budget History for Legal Fees
October 17, 2008
It is interesting to look at the history of the legal and professional fees that we have paid in our SR dues. Do we really want to see this ever-increasing trend continue? What do we get for it? Why are the legal fees more than double what they were just 5 years ago? What can we expect to see for 2008? Note: the data was derived from the AUDITED ACTUALS in the 10-Day notices of each year.
|
Year |
Legal |
Accting |
Other |
Arch & Engin |
Gov Docs & Manuals |
Total Professional Services |
|
2003 |
21,416 |
17,083 |
4,660 |
$ 43,159.00 |
||
|
2004 |
30,314 |
18,000 |
1,499 |
8,000 |
$ 57,813.00 |
|
|
2005 |
39,835 |
19,980 |
4,460 |
10,299 |
$ 74,574.00 |
|
|
2006 |
37,002 |
20,000 |
2,915 |
6,775 |
$ 66,692.00 |
|
|
2007 |
53,032 |
20,000 |
3,275 |
11,293 |
$ 87,600.00 |
|
|
2008 |
43,936 |
20,000 |
|
2,450 |
6,725 |
$ 73,111.00 |
Dear Smoke Rise Neighbor:
The September 15, 2008 Smoke Rise Club News reported the passage of a motion to pay the personal legal fees incurred by Jeff Stich as a result of a lawsuit filed by Dr. Jane Petrozzino. This motion states that “Jeff Stich be reimbursed for all fees paid to date and all future payments due to his attorney be paid directly by the Smoke Rise Club”. This motion has no budget limits and remains open-ended including the possible payment of settlement costs for any judgment against him. This motion was made and passed without the benefit of community knowledge or discussion and is not in the best interest of the residents.
Dr. Jane Petrozzino is a school principal and maintains an office in Wayne, New Jersey where she does the majority of her tutoring. She has also tutored from her home for more than 20 years similarly to other tutors who continue to advertise in the Smoke Rise News. Dr. Petrozzino’s lawsuit results from being singled out and being ordered in May of 2007 to close her business with five days notice while other tutors and home-based businesses have been allowed to continue to this day. Jeff Stich is also being sued personally for threats and false statements he allegedly made against Dr. Petrozzino. The lawsuit can be viewed in its entirety at srnews.wordpress.com.
Dr Petrozzino is a long time resident of Smoke Rise and there have been no complaints from her neighbors. She continues to pay her dues even though her transponder has been deactivated, her workmen have been refused entrance at the gate, she has not been allowed to complete the landscaping of her home and she has been denied club privileges. Smoke Rise Security personnel have indicated that Dr. Petrozzino has been treated differently from other residents currently operating home based businesses.
The Smoke Rise Club, although responsible to its members for the legal defense of the Club and Board as a whole, does not have the responsibility to defend a governor who is being personally sued for inappropriate personal actions. Jeff Stich stated this himself in a recent issue involving a former governor. We feel it is inappropriate for Club dues to be expended in this way and ask you to join us in sending this message to the Board. If you agree, please mail the enclosed notice as soon as possible to : Take Action PO Box 83 Pompton Plains, NJ 07444
Thank you,
Take Action Committee
Dear Board of Governors:
I do not want my Smoke Rise Club dues spent on the personal legal defense of a governor and I ask that you stop any future payments made for the legal defense of Jeff Stich and that he reimburse the Smoke Rise Club for payments made on his behalf.
Thank you,
Name_______________________________________________________________________
Address_____________________________________________________________________
Jane Petrozzino vs. The Smoke Rise Club, Inc.
July 27, 2008
As some of you may be aware, Dr. Petrozzino is involved in a lawsuit against the Club as well as some individual Governors. The suit involves her home business. She claims the bylaws are being selectively applied in her case. Her business has been singled out while other home based businesses are allowed to continue. Some selective information was published in the Smoke Rise News, but the suit can be viewed in its entirety here. Click on the link to download the file as a PDF.
Jane Petrozzino vs. The Smoke Rise Club, Inc. (Full Legal Suit)
