HOA Nut House

by Elisabeth Nardi | Contra Costa Times

The former second-in-command at Rossmoor is now suing the Walnut Creek retirement community's board, accusing it of harassment and ageism.

Connie Roberts worked at the gated community of 10,000 residents for 12 years as director of trust services and risk management. She was fired in 2006 because of an alleged conflict of interest, according to the suit filed last month in Contra Costa County Superior Court against Rossmoor's governing board, the Golden Rain Foundation.

The lawsuit alleges that Roberts was pushed out by then-Chief Executive Steve Adams because he blamed her for his employment contract not being renewed; that Roberts was discriminated against because of her gender, health problems and age (54 when she left); and that Adams wanted to hire younger people.

The suit also alleges that Adams received perks, such as sports tickets, from Rossmoor vendors in exchange for service contracts with the community.

The suit also says Roberts was told she was fired because she contracted with a company her daughter worked for. Roberts claims that was not a conflict of interest because her daughter works in a different city and received no reward for Rossmoor's contract.

Adams, who left Rossmoor in 2007, said he could not comment on why Roberts was let go. He said Roberts had nothing to do with his leaving Rossmoor.

The lawsuit blames the nine-member Rossmoor board for failing to oversee the activities and behavior of its top executives.

"Sometimes in life you have to stand up for your principles," Roberts said. "That the (Golden Rain Foundation) board allowed all of this to happen and allowed the mismanagement — it is wrong. I hope this will change how the community is managed."

Adams said all of Roberts' claims are false. He had not seen the suit as of Thursday, but he said he never harassed or discriminated against Roberts or took perks for contracts.

"Without really knowing what it is that is being alleged, it's hard to defend myself," he said, "but obviously if someone is accusing you of something you know you haven't done, it doesn't make you too happy. None of the things that have been alleged are accurate."

The suit asks for an unspecified amount in lost wages, as well as emotional and punitive damages. It also asks that Roberts be reinstated, which she does not expect to happen.

Current Rossmoor CEO Warren Salmons said he will not comment on pending litigation other than to say, "We will vigorously defend against the claims in the lawsuit." Board President David Smith did not return calls for comment.

Lawyers for the board want the case heard through binding arbitration. Roberts and her attorney are fighting that, saying it would mean the decision — made by a third party — would not allow for an appeal and would not be public.

Gilbert Doubet, a resident who operates an Internet chat board about Rossmoor, called "yourrossmoor," said residents have fought for years to have more openness in board affairs. If the lawsuit and any settlement becomes private, it would not be fair to residents, he said.

Roberts' lawsuit "verifies what people have been guessing at for years — that there is probably a lot of secrecy in Rossmoor and that back-room manipulations lead to kickbacks or unfair dealings," Doubet said.

Even more complicated is that Rossmoor is run like a municipality, with its own security, sewer system and newspaper, and the nine-member board elected by the residents, Doubet said. The board members are the overseers of the homeowner's associations.

"There is a lack of checks and balances in our system that any normal municipality would have," he said.

Reach Elisabeth Nardi at 952-2617 or enardi@bayareanewsgroup.com.

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