The Ninth Circuit Court of Appeals has completely affirmed the decision of Judge Lasnik in US District Court in favor of the defendants Lummi Island Scenic Estates Community Club (LISECC) and rejected the appeal of Chuck Ortego and other plaintiffs.
The district court properly determined that LISECC has continuing authority to govern all of the properties comprising Lummi Island Scenic Estates.
The district court properly granted summary judgment in favor of the Defendants on the breach of fiduciary duty claim. Plaintiffs supplied no evidence to suggest that the directors failed
to act “reasonably and in good faith” in their stewardship of the water system.
The district court did not abuse its discretion in denying Plaintiffs’ motion for sanctions. Plaintiffs provided neither the authority to support sanctions nor a meaningful explanation of why sanctions were warranted.