Dear Fellow High View Owner:

Attorney Robert B. Schulman and his firm recently sent a letter to many owners. It was on nice stationery and used impressive (but vague) language. At the end, however, it states “This letter is an advertisement for legal services.” [1] In other words, the letter and the meeting are a sales effort. This firm does not represent High View and the Board does not endorse this in any way.

This solicitation seems to be related to a pending lawsuit against the developer and High View, our condominium association (Schaftel vs. Hunley et.al., Cir. Ct. for BaltimoreCounty) which has been discussed in Board Meetings.[2] All allegations have been adamantly denied by High View and Highpointe Business Trust (the developer). The Schaftel lawsuit is, in part, against our jointly-owned interests.

Just initiating or expanding formal legal action can cause harm. Most obviously, we’re concerned about having to increase monthly assessments to pay for legal costs. We are also very concerned about the damage to High View’s reputation, loss of value of individual units, difficulty in refinancing our mortgages and getting financing for buyers. These can result from just the allegations in legal filings, whether eventually proven or not. Mortgage underwriters have already raised questions about the above lawsuit in connection with owner refinancing and new loans for buyers.

Before the Schulman letter was sent, the High View Board (now owner controlled) initiated a process to examine our entire infrastructure as part of the transition to owner control.We intend to engage engineering experts andto consult regularly with High View’s legal counsel. The developer has already voluntarily spent millions correcting construction defects – even though problems were inherited and not created by them. We have no reason to think that direct discussion and negotiation won’t resolve any remaining construction issues, including noise if any are found.

If you attend this meeting, we strongly suggest you get answers to the attached questions and any others you may have.

If you provide your name and address and signature as requested on page 2 of the Schulman letter, we suggest you include a statement that the law firm may not use your name, address and attendance at the meeting for any purpose without your further permission.

Legal relationships and rights with regard to condominiums are complicated. John Oliveri, Esq. counsel to High View will attend the scheduled Board Meeting on April 15. He will make a brief presentation and will be available to answer questions.

Sincerely,

Directors and Resident Officers

High View at HuntValley Condominium

Some questions:

  1. Is this an attempt to get individual owners to join the Schaftel lawsuit?
  2. Will High View continue to be sued?
  3. If so, aren’t we suing ourselves and causing ourselves to pay legal expenses to defend the Association?
  4. Even if there are design or construction defects in the common elements, wouldn’t the condominium association (High View) be the one to be awarded damages – not individual owners?
  5. How much will this cost an individual unit owner?[3]
  6. Do you have any actual physical evidence of any noise related defects in construction or design?
  7. Who will pay for expenses for any studies or expert witnesses?
  8. Who would control those expenses?
  9. Will individual owners be publicly identified in any lawsuit?
  10. Can an individual owner be subpoenaed to be deposed and to testify?
  11. Are owners who are individually part of a lawsuit subject to background investigation and questioning under oath on personal matters which might be used to question their honesty, integrity or reasonableness of views?
  12. Can we collect any damages caused by adverse publicity from a lawsuit that we file? These damages might include depressed market values, difficulty in selling, difficulty in refinancing, and difficulty in financing for a prospective buyer.
  13. How long could this take?
  14. How much could this require from owners in expenses and filing fees?
  15. If I agree to part of such an action, can I withdraw? If so, what are the consequences?
  16. What are the risks to me, and to the property value of my unit, if I join the lawsuit?
  17. What likelihood of success do you expect, particularly where the project has been in operation for years with little or no history of such complaints?

1

[1] Disclaimer, page 2 of letter from Robert B. Schulman dated March 23, 2010

[2] The letter states “Please be advised that our firm, in conjunction with Howard E. Goldman, Esq. is investigating potential construction and design defects in connection with concerns….” (emphasis added) Mr. Goldman and his firm represent Mr. Schaftel. We do not know the exact relationship that the phrase “in conjunction with” is describing. The Schulman firm has not entered an appearance as counsel in the Schaftel case.

[3]Disclaimer,page 2 of letter from Robert B. Schulman dated March 23, 2010 “In order to join the lawsuit, you will need to sign an agreement, which will explain the scope of our representation and the fee to be charged (emphasis added).” We would add to that. Read it very carefully and be sure you fully understand it. It will be written by lawyers before they have any responsibilities to represent your interests.