December 5, 2017 GOMO Response to Appeals Court Decision

The 14th Appellate Court ruling in the Section 3 case was received on November 14 and the ruling that GOMO was improperly formed was upheld. GOMO had a regularly scheduled meeting the following day, but that short time frame did not provide sufficient time for a thorough review and consideration, nor did the Board have time to meet with Counsel. It was decided the earliest opportunity for a follow up meeting was the week of November 27 -30.

Counsel was present at the follow up meeting and options going forward were presented and discussed. It was determined of the three options discussed (request review by 3 Judge Appellate Panel, request review by 9 Judge Appellate Panel, or pursue an appeal to the Texas Supreme Court), one option stood out to be the most viable. It was determined that for an additional cost of $1000, GOMO could request a review of the ruling by the 3 Judge Appellate Panel. To allow for further consideration and preparation, it was agreed Counsel would request a 30 day extension to respond to the Court. That extension was granted by the Court on November 30.

The primary issue at this point is the impact of the ruling that GOMO was improperly formed. While this ruling is of limited scope, specific to the Defendant and not Sections 1, 2, 3, and 5 as a whole, this ruling (which will become final 45 days from issuance unless further action is taken), is problematic. GOMO also recognizes the importance of bringing this litigation to a close so the neighborhood may move forward appropriately to consider options to correct formation issues, reform and update deed restrictions, and address the very necessary objective of restoring trust and confidence within the neighborhood prospectively.

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