Golden Rain Foundation v. Franz
Seal Beach · CA · California Court of Appeal, Fourth District, Division Three
Member win · records
What happened
Residents of Leisure World Seal Beach (including Carol Franz and others) requested association records from Golden Rain Foundation, which holds common facilities in trust and provides management services to the Mutuals. GRF refused, lost repeated small-claims cases, then sued for a declaration that it was not an "association" under Davis-Stirling. The trial court held GRF is an association subject to Davis-Stirling records duties. The Court of Appeal affirmed (June 10, 2008).
What the court (or agency) held
Golden Rain Foundation, the nonprofit that holds Leisure World Seal Beach common facilities in trust and supplies management, accounting, and maintenance to the Mutuals, is an "association" under the Davis-Stirling Common Interest Development Act and thus subject to its member records-inspection obligations. GRF's declaratory-judgment effort to escape that status failed.
Why this matters for members
Entities that functionally govern common-interest living (trusteeship over common facilities, management for Mutuals) can be "associations" even if they style themselves as something else. Repeated small-claims losses did not stop GRF from seeking a contrary declaration—and it lost again.
What the member did
Made written record requests, used small-claims statutory penalties when documents were withheld, and defended GRF's declaratory action through a published appeal.
Questions for the board
- Which entity in our community actually holds common facilities or provides management, and is it treating itself as the Davis-Stirling "association"?
- What written records-request process exists, and how quickly are requests answered?
- If a related foundation or manager denies it is an association, what governing documents define its role?
Questions for a lawyer
- Under current Davis-Stirling definitions, is our management/trust entity an "association" for records purposes?
- What categories of records must be produced, and what fees/timelines apply?
- How should repeated improper denials be addressed (small claims, civil action, demand letter)?
Citation
Golden Rain Foundation v. Franz, 163 Cal. App. 4th 1141; 78 Cal. Rptr. 3d 192; G038758 (2008) (2008-06-10). California Court of Appeal, Fourth District, Division Three. Outcome chip: records hub / secondary. Source: https://caselaw.findlaw.com/court/ca-court-of-appeal/1139504.html
_General information, not legal advice. Outcomes turn on facts and current law._
General information, not legal advice. Outcomes turn on facts and current law.