LMOA/Schiff Settle Lawsuit (through mediation) to the tune of $76,875

On January 8, 2010, LMOA negotiated a settlement with Donald Schiff to resolve pending litigation. In 2006, Dr. Schiff, owner of Lake Monticello lots 126, 127 and 127A off White Bluff Court in Section 11, brought to the Board of Directors a proposal to subdivide and develop the property of approximately 9.5 acres. At meetings in June 2007 and April 2008, the Board denied his proposal.

In December 2008, Dr. Schiff filed a civil suit in Fluvanna County Circuit Court, petitioning the Court to overturn the Board’s decisions, to allow the development to proceed, and to compel LMOA to pay costs associated with development of the proposals and damages for lost profits. The Board of Directors stood by its decisions and vigorously defended the suit.

In September 2009, Dr. Schiff non-suited the case because of a lack of available court time in October for a jury trial, as requested by Schiff. By dropping the suit at that time, the plaintiff retained his right to re-file the suit in the future.

Since September, the Board has responded to several suggestions to negotiate a settlement of the suit. With LMOA and Dr. Schifff are apart in their positions, the two parties agreed to go into mediation.

By the terms of the agreement that was approved by the Board of Directors on January 12, 2010, LMOA was not required to admit liability. LMOA and its insurance carrier will pay the sum of $75,000 to Dr. Schiff, of which LMOA’s portion is $25,000. LMOA and its insurance carrier also will pay mediation costs, of which LMOA’s portion is $1,875. Dr. Schiff will release all claims against LMOA relating to the Board refusal to grant subdivision. The agreement also prohibits any future case against LMOA relating to its disapproval Friday Flyer January 15, 2010 of the subdivision and precludes subdivision as long as Dr. Schiff owns the property.

Dr. Schiff also agreed to withdraw and not re-file any applications with Fluvanna County to subdivide his lots.
By agreeing to the settlement, the Board was able to stop development of the subdivision, avoid additional costs, and eliminate the risk of an adverse jury verdict.

The Board of Directors believes that its actions in defense of the suit and its participation in the mediation were in the best interests of LMOA and the Lake Monticello community.

From the Friday Flyer