Final Katz Lawsuit and Settlement Update 05/14/24

The Katz lawsuit settlement is complete and associated expenses paid. Refund checks for the unused Special Assessment balance were mailed.

Southern Land Group began developing what today is Martin Downs in the 1980’s. The developer first created the infrastructure which included retention ponds, roads, and the drainage system. During that process, a drainpipe was buried in the wrong place, not within its designated Drainage Easement between several homes. The developer turned Martin Downs over to Martin Downs POA (MDPOA) in 2000. The Katz’ purchased their property in 2012. In 2015, when the pipe was found, MDPOA had the drainpipe disconnected, filled with concrete, and installed a new drainpipe in the proper Drainage Easement. Katz quickly determined that they could no longer hold the developer or the builder responsible for potential damages they claimed, so they filed a lawsuit against MDPOA. The full Board of Directors of Martin Downs POA met on January 20 and unanimously approved the settlement offer for the 9 year old Katz lawsuit. The offer was accepted by Katz, and signed. As part of that approved settlement offer, MDPOA purchased the Katz property for $550,000, and will pay a cash sum of $500,000. On February 08, the full Board of Directors unanimously approved a special assessment to the Members of MDPOA to collect the money needed to pay the approved cash settlement. The assessment included monies which might be needed to pay closing costs for the property and interest on the loan to purchase the property, settlement costs, etc. All unused assessment monies will be returned to the Members. MDPOA purchased the property March 22 using a short term interest only loan, sold the property for the same amount less closing costs, and has paid back the short term loan with only one interest payment paid, and no real estate commissions were paid – all within 20 days. The special assessment monies collected to pay the cash part of the settlement offer, were paid April 22 to complete the remaining requirement of the settlement offer. At this time there are no other pending lawsuits against MDPOA.