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Litigation Update

Litigation Update

On November 1, 2022, District 2 filed a lawsuit against District 1 and its individual directors seeking over $42,000,000 in damages.  All claims against the individuals (i.e., Board members of District 1) were dismissed by the judge before trial. District 1 counter-sued District 2 for not paying certain tax money that District 1 claimed was due under the Intergovernmental Agreement between the two districts.

Last Friday, June 28, 2024, the jury returned a verdict in favor of District 2 against District 1 in the amount of $494,507.34. 

District 1 only has two sources of revenue: the tax money collected by District 2, which District 2 has refused to pay to District 1; and fees from homeowners assessed by District 1. Therefore, without the tax money from District 2, District 1 is forced to consider imposing an additional special fee on all lots in order to pay for this judgment. District 1’s Board will consider this fee at a forthcoming public meeting, which date and time will be announced in the coming weeks.

Please note that this verdict has no impact on outstanding invoices from District 1. If you have an outstanding invoice, please pay it promptly.

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