Wieland: No legal obligation for refunds

Posted 9/30/20

This is response to the numerous letters on the topic refunds of property assessments due to facility closures in Sun City.

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Wieland: No legal obligation for refunds

Posted

This is response to the numerous letters on the topic refunds of property assessments due to facility closures in Sun City.

For full disclosure, I previously served on the Recreation Centers of Sun City Board of Directors for two terms between 2013 and 2018 inclusive.

What the members fail to understand and the RCSC has not come out and said is that they are not legally bound to offer any kind of refund due to the COVID-19 virus and closing of the rec centers by state fiat.

Having spent three decades in insurance, I immediately understood why refunds were not in order and was hoping someone would explain why. Since no one has stepped forward, I will explain as simply as possible.

The agreement the members sign upon purchase of their residence, be it condo or detached housing, is what is known in contract law as a contract of adhesion. An example that everyone will understand is an insurance policy, be it auto, home, life, etc. All terms and conditions as they are known are drafted by one party and offered to the other party to the contract. Any revisions or additions, i.e., coverage amount(s), deductible, addresses, etc. must be written and added to the contract prior to signing.

Simply put from a legal standpoint, if it is not there, it does not exist. Having reviewed my agreement, I saw no covenant that explicitly stated that in the event of a pandemic or epidemic that required the closing of RCSC facilities for an indeterminate amount of time, either by the RCSC Board of Directors or a governmental entity, assessment fees shall be prorated based on the length of closure. The reason I did not see it is because it is not there.

So, members who have threatened to sue RCSC for breach of contract, good luck with that as you cannot sue for something that is not there.

David A. Wieland

Sun City

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