April 3, 2015

Dear Victoria Estates Homeowners:

The purpose of this letter is to inform homeowners of the status of the lawsuit filed by the Board
of Directors in December, 2014 against East Kentucky Paving and the current and potential costs
to homeowners incurred by this unilateral action by the board.
The initial 76-page motion, filed on December 1, 2014, in the Scott County Circuit Court, sets
forth several issues including the lien put on the property of Jackie Ruth against the equestrian
center, home, filling station, and adjacent buildings near the entrance of the community. There is
no legal basis for the board to encumber property of Mr. Ruth that is outside the boundaries of
Victoria Estates.
In response to the VEHA motion, Ruths attorneys have filed counter motions, one questioning
the legality of several issues in the initial lawsuit, titled Declaration of Rights. The second
motion, is titled Answer and Counter Claim. This motion calls for punitive damages to Jackie
Ruth and Bruce Barber and seeks loss of income and attorneys fees. All three of these
documents are posted on the VEHA website along with other motions related to the December,
2014 filing by Mr. Billings, who represents VEHA.
Under Kentucky Law, damages and attorneys fees are only awarded through a jury trial, and the
current backlog for jury trials in Scott County is two to three years. Homeowners are responsible
for attorneys fees incurred in this litigation. Fees paid to date are in excess of $20,000 to Mr.
Billings against a total budgeted amount of $10,000 for 2014. Attorney fees for that year actually
totaled 16,430, most of which went to Mr. Billings. The 2015 budget does not list legal fees as a
separate item, but includes them with Legal, CPA, and Reserve Study and a projected amount
of $28,600 for the year. The total cost to homeowners for this legal venture may amount to
hundreds of thousands of dollars applied to monthly dues for years of litigation over an issue
of questionable validity. The filing of this litigation was improper to begin with because it
was not affirmed by a 75% vote of homeowners as required by the VEHA covenants,
Section 9, p. 37. Despite the homeowners request, at the annual meeting, for mediation,
none has taken place.
A number of concerned homeowners are considering circulating a petition, as allowed in the
VEHA Bylaws, to call for a special meeting of the board and membership to allow the VEHA
Board of Directors the opportunity to obtain the required 75% of the vote to continue the
lawsuit. Homeowners should attend the April meeting of the board at the home of Ancil Conley

at 123 Man OWar Court on Wednesday, April 8, 2015 at 6:30 p.m. to seek information on
the issues outlined in this letter.