LWW's books to be opened

A lawsuit against the Lake Wildwood Association has survived an early counterattack by the board's lawyer and will now force the gated community's books to be opened.

Sacramento attorney David Frenznick filed the suit in April for Lake Wildwood resident William Husbands. The suit alleges Lake Wildwood General Manager William Haushalter is unfit to run operations there and the board should have been watching him more closely.

The suit said the result of Haushalter's alleged bad performance and the board's inaction have resulted in a polluted lake, an improperly maintained golf course and at least $190,000 in losses at the clubhouse due to shoddy record-keeping.

Board lawyer David Worthington of Sacramento filed the early challenge to the suit, which was overruled Aug. 24 by Judge Pro Tem Patricia Hamilton of the Nevada County Superior Court. Hamilton ruled board members could not shield themselves from the suit because of Haushalter's actions or inaction.

According to Frenznick, the ruling will make the board members personally liable if it can be proven they breached the financial trust of the association. The board members named in the suit are: President Marty Domagala, Vice President Bill Stone, Jim Pack, Holly Tounsand, Jim Phillips, Pete Maffei, Glen Orren and Bud Springer.

"We'll be looking at the books of the association" in coming months, Frenznick said. He said he will also be taking statements from board members in preparation for court.

"We don't comment on lawsuits that are in progress," Haushalter said. Worthington also did not want to comment, but he has reported the status of the suit in the association's newsletter.

"No determination was made by the court on the merits of the suit, nor did the court determine whether any of the allegations are accurate," Worthington said. He also said he would be gathering information to defend association members and the legal process will take many months.

The Union could not reach board President Domagala for comment. However, Vice President Stone said of the ruling, "It doesn't mean either side has won or lost ... The suit is still pending."

According to Frenznick, Husbands is not seeking any personal damages in the suit and is just asking for his legal costs to be paid. If Husbands' suit is successful, any other awarded damages would be plowed back into the association, he said. Husbands did not return phone calls from the Union.

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To contact Senior Staff Writer Dave Moller, e-mail davem@theunion.com or call 477-4237.