Queen Villas Homeowners Ass'n v. TCB Property Management

I. Background

Jacqueline Wilburn was a member of the board of directors of the Queen Villas Homeowners Association in Inglewood. Allegedly (at least according to her) the condominiums suffered a variety of construction defects and Wilburn, thinking she had special skills in the management of plaintiff’s construction defect litigation, “agreed to provide extraordinary Services” to “facilitate that litigation,” including selecting and communicating with counsel, and coordinating the litigation on the association’s side. She was paid for her “services” from the association checking account, allegedly with the knowledge and at least tacit agreement of the association’s property management company, TCB Property Management, which is the “DBA” of Laura Dawson. The property management company maintained the association’s checking account and checkbook.

A dispute has arisen, and is the subject of the instant litigation, however, as to whether Wilburn was properly paid or whether the property management company, in control of the checkbook, had a duty to thwart Wilburn’s self-dealing or at least blow the whistle on it. According to the complaint filed by the association, TCB…