Orange County Register

Here, in full, is what the attorneys at Laguna Woods Village sent us at The Watchdog explaining why TrueBallot will no longer be conducting the recall election: 

Statement from United Laguna Hills Mutual Legal Counsel

Why isn’t TrueBallot acting as the election service/inspector of election for the
upcoming recall?

There are a few reasons why United and TrueBallot are not working together on the
recall materials. After threats of litigation against United and TrueBallot by the recall
proponents, TrueBallot and United both had their own legitimate concerns about
protection under their existing contractual relationship. Litigation by the recall
proponents was a very real concern due to the fact that TrueBallot had been contacted
and challenged by recall proponents. Even if such a lawsuit would have no validity,
United and TrueBallot each wanted as much protection under the contract as possible
to avoid exposure to potential legal liability and attorneys fees which might be incurred
in a lawsuit. Among the contract issues discussed were United’s request that TrueBallot
carry insurance and TrueBallot’s request for complete indemnification. Ultimately, we
were unable to reach a mutually satisfactory contract that both parties were comfortable
with.

Election service companies have become particularly important to all community
associations after the California Legislature enacted the “Battin Bill” (Civil Code Section
1363.03), which overhauled all association voting procedures effective July 1, 2006.
Independent Third Party Inspectors of Election were mandated by this law to provide
neutral election oversight and decision making. United and the other Associations which
are part of Laguna Woods Village have been using election service companies as
Independent Third Party Inspectors of Election even before the election laws were
passed. Because of the large size of the Mutuals and Golden Rain, 12,736 total homes
are located in Laguna Woods Village, with 6323 in United alone, there has always been
the need for election service companies to prepare, print, mail, receive, count and
tabulate voluminous numbers of ballots from members for elections and votes.
There is wide variety in the types of contracts and contract provisions for election
service providers/Inspectors of Election. These agreements are not “one size fits all,”
any more than there is a generic or standard contract for any other type of vendor of
services to associations. The contract terms need to be fair and reasonable for both
parties. As fiduciaries to the corporation, the United Board must always act and
negotiate all contracts with the best interests of the corporation in mind.
United and TrueBallot couldn’t reach agreement on contract terms. That’s it. There is no
conspiracy, no secret story, no hidden agendas. United Laguna Hills Mutual, and the
other Mutuals have worked with several different election service companies in the past,
including both TrueBallot and the current election service provider, Martin & Chapman
Co. All Associations currently plan to work with both of those election service
companies, and possibly others, in the future.

We anticipate that all of us will continue to receive and read more unsupported
allegations and inaccurate statements about the United Directors, PCM, attorneys, and
Inspectors of Election during the recall process. We encourage responsible journalism
and readership. Please carefully and fairly consider the facts, evaluate what you read,
and make your own decisions accordingly.

Read what TrueBallot has to say about all this here.

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