Majestic Asset Mgmt LLC v. The Colony at Cal. Homeowners Assn.

I.

BACKGROUND

A. Parties The Colony at California Oaks Homeowners Association (the Association) is the governing body of The Colony at California Oaks, a gated community of 1,586 single-family homes in Murrieta. Within the community is an 18-hole golf course with landscaped extensions called “fingers” that create open space among the homes. In 2007, the prior owners sold the golf course to Majestic Asset Management, LLC (Majestic), and sold related personal property to Wintech Development, Inc. (Wintech). Hai Huang and Jen Huang are married to each other and own and manage the affairs of Majestic and Wintech.

2 B. Secured Maintenance Obligations By the terms of the purchase agreement between Majestic and the prior owners, Majestic assumed the obligations of the prior owners to use the property only as a golf course, to maintain it in at least as good condition as that of other similar golf courses in the area, and to maintain and water the fingers in a manner acceptable to the Association. The grant deed by which Majestic acquired title to the property contained the same use restriction and maintenance obligations. As part of its purchase of the golf course, Majestic…