June 4, 2026.
VIA EMAIL
Board of Directors
La Cresta Property Owners Association c/o Powerstone Property Management
RE: SECOND AND FINAL DEMAND FOR ASSOCIATION RECORDS

Failure to Comply with May 5, 2026 Member Inspection Request
Dear Directors and Powerstone Property Management
On May 5, 2026, I submitted a formal records inspection request pursuant to California Civil
Code §§5200–5240, including Civil Code §5210, and California Corporations Code §§8330–8338. The request sought records relating to indemnification, advancement of legal expenses, insurance coverage, legal expenditures, board actions, and related matters involving current and former directors.

As of the date of this correspondence, the Association has failed to provide the requested records, failed to identify any records being withheld, failed to assert any applicable statutory exemptions, and failed to provide a lawful basis for noncompliance.

The Association's failure to respond constitutes a continuing violation of its statutory obligations under the Davis-Stirling Common Interest Development Act and the California Corporations Code.

This letter serves as a final opportunity to comply voluntarily before legal remedies are pursued.

DEMAND FOR IMMEDIATE COMPLIANCE
The Association shall, no later than June 11, 2026, fully comply with the May 5, 2026 records request by:
1. Producing all responsive records requested in the May 5, 2026 demand;
2. Identifying any documents withheld in whole or in part and providing a
privilege/exemption log specifying:

• Document date;

• Author(s);

• Recipient(s);

• General subject matter; and

• Specific legal basis for withholding;
   

3. Producing all non-exempt portions of responsive documents with only legally permissible
redactions;

4. Confirming whether any responsive records have been destroyed, altered, removed,
replaced, or are otherwise unavailable.

NOTICE OF POTENTIAL LEGAL CONSEQUENCES
If the Association fails to fully comply by June 10, 2026, I intend to pursue all remedies available under California law, including but not limited to:

A. COURT PETITION TO COMPEL RECORDS INSPECTION
Pursuant to Civil Code §5235 and Corporations Code §8337, a member may petition the Superior Court for an order compelling production and inspection of Association records.

B. STATUTORY MONETARY PENALTIES
California Civil Code §5235 authorizes the Court to impose monetary penalties of up to Five Hundred Dollars ($500) for each improper denial of a member's lawful records request.

C. ATTORNEYS' FEES AND COSTS
The Davis-Stirling Act authorizes recovery of reasonable attorneys' fees and litigation costs by a
prevailing member in an action to enforce records inspection rights.

D. ADVERSE EVIDENTIARY INFERENCES
Should litigation become necessary and responsive records are found to have been withheld, altered, destroyed, or otherwise not preserved, I will seek all available evidentiary and discovery sanctions, including adverse inference instructions and other remedies authorized by California law.

E. BREACH OF FIDUCIARY DUTY CLAIMS
The Board's continued refusal to provide records concerning expenditures of Association funds, indemnification decisions, insurance coverage, and legal fee payments raises serious concerns regarding compliance with fiduciary obligations imposed by California Corporations Code §§7231 and 7237.
Individual directors who knowingly participate in unlawful withholding of records may expose themselves and the Association to additional claims and liabilities.

PRESERVATION OF EVIDENCE

The preservation demand contained within my May 5, 2026 request remains in effect. The Association is directed to preserve all responsive records, including but not limited to:
• Emails
• Text messages
• Board portal communications
• Executive session materials
• Accounting records
• Insurance correspondence
• Electronic files and metadata
• Financial records and ledgers
• Legal invoices and payment records

Any destruction, modification, replacement, alteration, or deletion of responsive records after
receipt of the May 5, 2026, request may constitute spoliation of evidence and may subject the
Association and responsible individuals to additional legal remedies.

FINAL OPPORTUNITY TO AVOID LEGAL ACTION
This letter constitutes a final good-faith effort to resolve this matter without court intervention.
If full compliance is not received by June 10, 2026, I will consider the Association's nonresponse to be a deliberate refusal to comply with California law and will evaluate all available legal remedies without further notice.
Nothing contained herein shall be construed as a waiver of any rights, claims, remedies, or causes of action available under California law, the Association's governing documents, or principles of equity.

Sincerely,
Steve Brown
Member, La Cresta Property Owners Association