Settle or sue? That's the question facing the weary residents of the Villas of Cattail Creek, an upscale western Howard County community for seniors plagued since inception with a sewage system that never worked and a development team they don't trust.
About 70 of those over-55 residents faced a phalanx of Howard County officials and their own lawyer, Howard Goldberg, on Monday night to help them consider what may be the biggest decision they make in the long-running ordeal — whether to take a settlement the county worked out for the 93-home community, or to go back to court on their own.
The failed shared septic system has been replaced with one that works, and a county consumer protection lawsuit filed in September 2008 has been settled. County attorney Margaret Ann Nolan said her staff spent "thousands of hours" on the situation and several times reached a seeming impasse with the developers, Donald Reuwer Jr. and J. Thomas Scrivener, and builder NVR Inc., parent of Ryan Homes.
"A lot of this reflects the basic mistrust between the parties," Nolan said. The biggest sticking point, she said, was the developers' fear that a payment to the Cattail residents might in effect help finance the lawsuit against themselves. Nolan said the county's position, however, was that "we're not going to settle our case without making sure money flows to the community."
Donna Berusch, a resident, said after the meeting that money can't completely compensate for "the personal pain they have caused." Residents who need to move to assisted living haven't been able to sell and move, she said. "It's a disgrace" that the homes were ever allowed to be built without a functioning system, said Berusch.
At the time, in 2001, the septic system was regulated solely by state government. After the problem became clear, laws were passed giving the county regulatory authority over similar systems, and requiring a performance bond from builders to shield home buyers from a system failure. But the county's suit alleged other problems too, from a non-functioning front gate to the nine-hole golf course that was promised but never built.
If the private lawsuit is dropped and more than half the residents opt in, each person would receive $3,803.23, plus relief on $5,643 in sewerage fees over the next 28 years. In addition, the county would get $100,000 on its behalf to oversee and repair the current septic system as needed for the next five years, and $43,000 to relocate a misplaced sewer pipe. There is a $350,000 performance bond to guarantee the current plant works, and 15 buyers who paid a premium to live on the absent 9-hole golf course would share $29,900.
If less than 51 percent choose to opt in, they would still have the sewer pipe moved, and the county would get $25,000 for legal costs and $1,903 for each resident who does opt in to oversee the plant. Also, the private suit would continue. County public works officials said their inspections show the new system is working properly and should, if well maintained, last for many years.
Some residents were angry and felt the county deal falls far short of justice, while others just wanted an end to the issue. A community vote is scheduled for June 2. "It's down to one issue and one issue only. It's all about the money," Goldberg told the group.
"A lot of people want to sell their homes, but they can't the way things are," said Renee Parcover, president of the group's homeowner's association. "I only see three choices," she said. "We go ahead [with a pending private suit] with no guarantees and more expenses. We do nothing — we'd only lose then. We settle, opt in to the county's suit, and get money," she said. "This settlement offers you more money than any other settlement we've been offered to date."
County officials said the settlement will cost the developers from $600,000 to $1 million, depending on how many residents opt in.
Joan Moskowitz, who, like the others, endured years of heavy trucks hauling raw sewage past their homes for up to five runs per day, praised the county's efforts.
"Most of the residents appreciate everything the county has done for us," she said after the 90-minute meeting at the development's community center.
Not everyone agreed, however.
"This settlement is getting us five cents on the dollar" compared to true expenses, complained resident Bob Einziger. I would have liked to see something better than a nickel on the dollar. She told us she would make us whole," he said about county consumer protection director Rebecca Bowman, who also attended the meeting.
Al Abashian said he's already spent $30,000 of his own money on his own lawsuit and he can't see giving that up now. "I feel like I have been the sacrificial lamb," he said, by blazing a legal trail for others to follow.
"When we bought our homes, we were told it [the shared septic system] was state of the art," said resident Sue Folks. "Is this septic system state of the art? The best money can buy?"
Others complained about the damage to community private roads by the heavy sewage removal trucks, and the larger size of the new treatment building. Marc Charmatz wanted ironclad protection from any future suit against residents by the developers.
"You bought homes in an area with this type of facility," Goldberg pointed out. "You are entitled to be frustrated." But he said a new lawsuit from the developer sis highly unlikely. "It's more likely they're going to sue you if you don't settle," he said. "anybody can sue anybody for anything."
An angry Julia Stanerro tried to quiet one critic to speed up the meeting.
"No, we're not getting what we want, but we're getting something," she said later. "I would just like to see this end so we can move on."
Nolan said the county suit is settled, no matter what the residents choose to do. If they are not satisfied, they have another option in their own private suit.
"Go for it," he said. It's your choice."