Partner Peter Towsky Calls for Accountability in HOA Case Featured in BusinessDen

The Todd Creek Farms Homeowners Association in Brighton recently filed for bankruptcy protection. Robinson & Henry Real Estate Partner Peter Towsky represents 31 homeowners suing the association. BusinessDen interviewed Towsky in the article HOA goes bankrupt to 'stop financial drain' of homeowners' lawsuit.

The legal dispute centers around allegations of financial mismanagement related to a landscaping contract, which the HOA board has denied. Todd Creek Farms is a 750-acre neighborhood with 370 lots. The HOA filed for Chapter 11 bankruptcy on July 15, citing escalating legal costs from a lawsuit brought by 31 homeowners. The suit alleges that board president Jason Pardikes funneled a lucrative landscaping contract to a company he had ties to, a charge he denies.

Towsky, who represents the homeowners bringing the lawsuit, isn’t convinced by the HOA’s explanation.

“There’s no doubt that they’re frustrated,” Towsky told BusinessDen. “They believe this is just another act in a long pattern of behavior designed to avoid accountability. The plaintiffs believe there needs to be accountability.”

At the center of the dispute is a 2020 landscaping job that was supposed to cost $27,000. Instead, the HOA received a bill for nearly eight times more, at $215,000. An investigation by the Adams County Sheriff's Office reportedly tied Pardikes to the company Method Landscaping, which received the contract. Towsky says his clients believe Pardikes financially benefited.

"We believe that not only was there an undisclosed connection between the landscaping company and HOA president Jason Pardikes, but that he financially benefited to the tune of well over $100,000," Towsky told BusinessDen. "I think you can fairly say over $150,000."

According to the HOA board, the bankruptcy was a move to halt the financial bleed caused by the ongoing legal fight. They also warned that continuing the lawsuit could lead to special assessments on all homeowners to cover legal fees.

Pardikes and the HOA deny any wrongdoing. They claim the plaintiffs are simply disgruntled homeowners upset about losing control of the board. Now, with the HOA declaring bankruptcy despite reportedly having more assets than liabilities, questions remain about the legitimacy of the filing.

"The question is whether there are actual solvency issues with the HOA," said Towsky. "We intend to ask the court to decide the legitimacy of the HOA's bankruptcy proceedings; whether it was filed with a legitimate bankruptcy or solvency problem, or if it was filed without one solely to avoid or delay accountability in the state court case."