Mojtahedi

FACTS

Relevant Background The Laguna Sands condominium complex (Laguna Sands) consists of 32 units on the waterfront in Laguna Beach. The complex is governed by Laguna Sands, Inc. (HOA), a homeowners association. Each homeowner is a member of the HOA. The HOA’s board of director’s (the Board) consists of five directors and one alternate director. In 2009, plaintiffs purchased one of the units at Laguna Sands. Defendant also owns a unit at Laguna Sands and previously owned a second unit. Both plaintiff Mojdeh Mojtahedi and defendant concurrently served on the Board during the time period relevant to the instant case. Defendant served as the president of the Board from January 2016 to December 2018.

The Complaint Plaintiffs initiated the instant action in June 2018. In September 2019, plaintiffs filed a second amended complaint against defendant as well as the HOA and 2 two other Board members who are not parties to this appeal. The complaint generally alleges defendant was involved in funneling HOA funds to projects and repairs benefiting his units or common areas adjacent to his units.

2 Plaintiffs subsequently filed a third amended complaint after defendant filed his…