At the announced Special Business Meeting held on February 6, 2018, and after many weeks of discussions, the Garden Oaks Maintenance Organization board decided the following:
- GOMO will not pursue an appeal to the Texas Supreme Court – This decision effectively ends all litigation being pursued by the organization in connection with the Section Three Litigation. In making this decision, the Board weighed the likelihood that the Texas Supreme Court would not accept the appeal, the financial cost of continuing the litigation, and the potential positive and negative impacts either choice would have on the neighborhood as a whole. With a very small acceptance rate, especially for issues that are not likely to impact the state as a whole, the Board determined that the costs of an appeal far outweighed the chance for a positive outcome.
- GOMO will cease cashing transfer fee checks for the immediate future – The decision not to seek an appeal to the Texas Supreme Court will result in the Court of Appeals decision in the Section Three Litigation becoming final that GOMO was improperly formed as to the particular homeowners in the lawsuit. It is important to note that our deed restrictions remain in place and are enforceable and that the Appeals Court did find that GOMO, as a registered Texas non-profit corporation has a right to exist, to act in accordance with its bylaws, and to enforce these deed restrictions. The only activity of the organization that remains unclear is the collection of fees. The organization will continue “business as usual” until a decision about its future is made, but all transfer fee assessment checks will be held out of an abundance of caution.
These decisions were not made lightly and were made only after a lengthy consultation with the Garden Oaks attorney. After weeks and months of discussions, these were seen as the best course of action for both the neighborhood and the organization. The Board will continue to work with counsel to fully understand the legal and procedural requirements for the potential dissolution of GOMO and to contemplate, with neighborhood input and support, the available options for a successor deed restriction enforcement entity.