The Sun City Homeowners Meeting

on Kitec: Pulte v. the Class Attorneys

7 January 2007, Hanneman Hall, Sun City Anthem

Many of those almost 900 in attendance, who had arrived early enough (by 5:00) in order to get a seat for this past Sunday's 6:00 p.m. meeting, would agree that the Kitec meeting took on the atmosphere of a courtroom drama, with rebuttals and oratory. After brief introductory comments by Association counsel John Leach and the respective attorneys representing Pulte and the class action attorneys, there were rounds of some 40 questions asked by Board member Kay Dwyer. Congratulations to the Board of Directors for a program well conducted.

The questions rotated back and forth between the parties with an opportunity for rebuttal. A few of the questions were directed to the two contractors Pulte had selected as companies who would perform the work for the $7,800 Pulte was offering. The questions, carefully selected to elicit productive information, had been prepared in advance after being whittled down from over 200. They were distributed in advance to the parties so that they could be well prepared. That arrangement worked well, with a lot of give and take in the frequent exchanges that took place. The class attorneys went one step further and handed out the list of questions that Kay was asking so the audience could follow along. In addition the class attorneys included their response to virtually all of the questions. Pulte chose not to do the same. A copy of the "Class Counsel's Response to Anthem HOA Kitec Questions" can be read here (see below).

For those looking for answers and direction as to what to do with Pulte’s Offer, my feeling is that the meeting created as many new questions, frustrations, and concerns that residents did not want to deal with. For those looking to Pulte for something more substantive in terms of what was being covered by the repairs, they would be greatly disappointed as Pulte had nothing more to offer. For those who were looking for a release form that dealt only with the Kitec matter, as opposed to the language contained in the general release form, they too would be greatly disappointed. As a result, there was a clear sense of uneasiness, even outright hostility, that was directed at Pulte's legal counsel by some members of the audience.

Pulte’s position was clear and unequivocal—take it or leave it. Pulte’s attorney made it clear over and over again that with their Offer you know what you are getting (like it or not) while if the homeowners refused to accept Pulte’s Offer, they will not know what they will end up with by going with the class action.

While the class attorneys could point to this or that deficiency or omission in Pulte’s proposed offering, even to erroneous conclusions compared to what the statute would appear to require, Pulte appeared to be holding several aces in their pocket, or as some murmured, Pulte was holding that proverbial gun to the homeowners head by reminding us that the clock was running on their 35-day Offer.

What happens if you do not accept their offer within that 35-day timeframe? Pulte made that very clear—you are not eligible for their Offer and your future plight rests with whatever the class action is able to accomplish in your behalf. The homeowner will be placed in the very uncomfortable position of having to decide whether to accept the presumed certainty of a partial or questionable Pulte Offer that would repair the alleged defect or go with the uncertainty of the outcome of the class action suit.

Pulte’s response to questions about the completeness of their Offer, their procedures, and their interpretation of the law in this situation was frequently answered by their statement that they relied on the advice of legal counsel for the positions they have taken. The impression given was that only the courts could persuade them from doing otherwise.

Unanswered is the question of whether subsequent court action on this matter will in any way affect homeowner decisions made recently and over the next couple of weeks. However, I believe it would be wrong and a serious mistake for homeowners to assume anything about what the court may or may not do, such as taking an action that might bail homeowners out from a decision he or she made yesterday or will make tomorrow.

Here are some additional sources of information about the meeting and Pulte's proposed Offer.

1. The Class Action Counsel's Response to Kitec Questions.
2. Ron Johnson's Recollection of Responses to Kitec Questions.
3. David Berman's excellent & very detailed report on the meeting.
4. Channel 99 at 4:00 p.m. daily. The Kitec meeting will be shown uncut on Channel 99 for a two week period beginning January 9th.
5. A video tape can be viewed in the Greene Room (the old sewing room) at Anthem Center. It will be shown continuously from 8:30 am to 9 PM each day for a 2 week period beginning January 9th.
6. An Alternate Proposal to Pulte's Offer.
   

Ron Johnson, 9 January 2007   

P.S. Note on replacement pipe/fittings. The new manufacturer is Uponor North America and the product line is called Wirsbo Aquapex and their website is: http://www.uponor-usa.com/index.php?id=2

According to their website, Uponor North America is the continent's leading manufacturer of crosslinked polyethylene (PEX-a) tubing and a supplier of plumbing and heating systems for the residential and commercial building markets, as well as multi-purpose plumbing and fire sprinkler systems for one- and two-family homes.

Uponor North America, formerly Uponor Wirsbo, is a company with a long history of service. The company first began as Wirsbo, founded in 1620 in Virsbo, Sweden, forging high-quality steel and weapons for the King of Sweden.

Wirsbo emerged as the leader in the polyethylene pipe industry in 1968 when German inventor, Dr. Thomas Engel, developed a method to chemically crosslink polyethylene (PEX). A year later, Wirsbo successfully developed a viable manufacturing process, and in 1984, Wirsbo was incorporated in the United States as an importer of Swedish tubing and system components.

In 1988, Wirsbo was acquired by Uponor Corporation — a Finland-based company established in 1982 that supplies plumbing and heating systems for the residential and commercial building markets, as well as pipe systems to the utilities sector. In 2001, the company name changed to Uponor Wirsbo to capitalize on the market awareness and sound reputation of both companies. To create a stronger worldwide presence for Uponor Corporation, the company changed its name to Uponor North America in 2006.

Uponor Corporation is a publicly traded company with annual revenue in 2004 of $1.3 billion (USD). The company operates in 25 countries and has approximately 4,500 employees worldwide.