The Truth about the Shareholders' Court Victory!

You deserve to know the truth about the lawsuit we won against the Board of Directors and the Board is not telling you the truth. We promise this will be the last letter we send about the lawsuit if the Board stops their illegal behavior. I have a complete set of court documents, but I have given all shareholders the 4 essential court documents that tell the real story of the court dates and actions by both sides that resulted in my court victory on November 15, 2010. A 1-page guide to explain the court documents in sequence is attached. I am happy to show you my other court documents if interested.

After being advised by attorneys that superior court would cost shareholders $10,000 to $20,000 in legal fees spent by the Board of Directors and take years to go to trial due to Board delay tactics, I decided to file in small claims court to keep shareholders’ costs very low and get justice as quickly as possible. I feel like I won the lawsuit for all of us! I know I handled everything properly in the court case. I believe the court handled everything properly, too. The Board did not handle everything properly and now they are blaming the court for losing the trial.

On Sunday, November 28, the Board passed out a deceptive letter to make you think the final court case that we won was dismissed. The very next day, Monday, November 29, they filed a motion in court to get our winning lawsuit thrown out after trying to convince you less than 24 hours earlier that the case was already dismissed. This proves that they deliberately tried to deceive you. We all know this is about the Board stopping the recall election again in a desperate attempt to stay in power without your consent. But now we have a court order from Judge Stacy Campuzano that protects your right to vote in the December 16, 2010 recall election and that has not changed.

When you vote in the December 16, 2010 recall election, it is a secret ballot and nobody will know how you vote unless you tell them. You can give your secret ballot to the Inspector of Election at the recall meeting or put it in the mail to his office in Mission Viejo by December 10th. The Inspector of Election certifies the final election results in a signed Affidavit of Findings, which is a legal document. The next court hearing will be held after the recall election is completed and after shareholders elect a new Board of Directors for the first time in 4 years. Your vote to recall this Board of Directors will restore our rights as shareholders.

No matter what the Board claims, the recall election has not been cancelled and the case has not been dismissed. We won the case fairly because we have the facts, the law and the evidence on our side. We proved to the judge that the Board violated our rights as shareholders to vote and our rights to have copies of GGM records, including financial, legal, tax, insurance, contract, and meeting records. The Board continues to violate our rights as shareholders and we believe they violated the court order. Since they lost in court, they are making their own case worse, not better.

Please read the attached court documents and remember to vote in the December 16, 2010 election. You are welcome to call me at (714) 794-2295 if you have any questions. Thank you very much!

Sincerely,

Darlene Cirillo



COURT DOCUMENTS ATTACHED
Cirillo vs. Garden Grove Manor, Inc.
Case No: 30-2010-00413188-SC-SC-WJC


1. The Notice of Continuance Dated October 22, 2010

• I filed the lawsuit on September 30, 2010 and the trial date was scheduled for November 1, 2010.
• Ann Marie McCartan and Dyan Gibbs requested a postponement to November 15, 2010.
• They filed the paperwork with the court claiming that the Board and the Manager could not appear on November 1st, paid the fee to postpone the trial date to November 15, 2010, and their request was granted.
• This is my copy of the court notice and the same notice was sent to the Board.

2. The Minute Order Dated November 4, 2010

• After successfully getting the court to change the trial date to November 15, 2010 because they told the court they could not appear on November 1st, Ann Marie McCartan and Dyan Gibbs showed up in court on November 1, 2010, anyway!
• I did not go to court on November 1st because the court already notified me that the Board got the date changed to November 15th. The court did not take any testimony or evidence from Ann Marie or Dyan.
• The court “inadvertently dismissed” the case because I did not show up on November 1st and corrected their error on November 4, 2010. They sent a notice to me and to Garden Grove Manor that the trial was still scheduled for November 15, 2010. They also left telephone messages for us.
• Please note the last line at the bottom of the Minute Order: “Court orders Clerk’s Office to give notice.” That is the judge’s standard instruction for the court to mail the notice to both sides in the case. This is the copy of the court notice that I received in the mail and the court sends notices to both sides at the same time.

3. The Minute Order Dated November 15, 2010

• I appeared in court for the trial on November 15, 2010. The Board of Directors and the Manager of GGM did not appear in court even though they received proper notification. But the judge did not dismiss the case due to their absence.
• The judge received testimony and documents from our side. She made her decision the same day and I won on both counts. The court ordered Garden Grove Manor to give me the records I have requested for over a year. The court also ordered Garden Grove Manor to not interfere with our recall election or other future elections in any way.
• Please note the last line at the bottom of the Minute Order: “Court orders Clerk’s Office to give notice.” That is the judge’s standard instruction for the court to mail the notice to both sides in the case. This is the copy of the court notice that I received in the mail and the court sends notice to both sides at the same time.

4. The Notice of Hearing Dated November 29, 2010

• The Board of Directors filed a motion to vacate Judge Campuzano’s court order on Monday, November 29, 2010 and the court hearing is scheduled for December 29, 2010.
• The Board claims they did not receive any notices about their successful postponement or my court victory, even though I received all notices and the court records show that both sides received the same notices. The Board will have to prove their case in court.
• We will appear in court to present our evidence and testimony regarding the Board’s violations of the judge’s court order. Court hearings are public and shareholders are welcome to attend the December 29, 2010 hearing.