Preview
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 EXHIBIT F RECEIVED NYSCEF: 06/30/2020
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF DUTCHESS
_____________---------------------------X
BOARD OF MANAGERS OF VAN WYCK GLEN
CONDOMINIUM, THE BOARD OF MANAGERS OF
VAN WYCK MEADOWS CONDOMINIUM, a
Condominium created pursuant to Article 9-B of
the Real Property Law of the State of New York,
on behalf of its unit owners,
Plaintiffs,
-against- Index No.
2017-50017
VAN WYCK AT MERRITT PARK HOMEOWNERS
ASSOCIATION, INC., ANTHONY COSTA and DICK
HACK,
Defendants.
----------------------------------------X
VAN WYCK AT MERRITT PARK HOMEOWNERS
ASSOCIATION, INC.,
Third-Party Plaintiff,
-against-
THE BOARD OF MANAGERS OF VAN WYCK MEADOWS .
CONDOMINIUM II,
Third-Party Defendant.
----------------------------------------X
EXAMINATION BEFORE TRIAL
. of the Defendant, DICK HACK, held on September
11, 2019, commencing at 10:15 a.m., at the law
offices of Handel & Carlini, LLP, 1984 New
Hackensack Road, Poughkeepsie, New York, before
Lora J. Curatolo, Certified Shorthand Reporter
and Notary Public in and for the State of New
York.
--_________________-___-________________________
CURATOLO REPORTING, LLC
(845)464-7734
curatolo.reporting@gmail.com
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
152
1 Dick Hack
2 "retention plan"?
3 A. As it relates to revenue retention
4 plan, yes.
5 Q. And what do you know that to be?
|
-- HOA funds were
6 A. That funds the
7 being withheld from the distribution from the
8 condos to the HOA.
9 Q. And when did that plan start?
10 A. Again, I really can't give you a
11 specific date. I believe it started in maybe
12 July of potentially 2016. But again, I could
13 have missed the years, quite honestly.
14 Q. Did all condos partake in this
15 retention plan?
16 A. Yes, they did.
17 Q. Whose idea was the retention plan?
18 A. That would just be an opinion.
19 Q. I'm sorry?
20 A. You want an opinion?
21 Q. If you know the answer, you can say
know."
22 if. If you don't, you can say "I don't
23 A. Do you answer opinion or do you
24 answer fact? I don't have a fact who did it.
25 Q. Okay. How long was this plan in
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
153
1 Dick Hack
2 place?
3 A. I don't think longer than six, may
4 have been five. I don't know specifically.
5 Q. Five months?
6 A. Uh-huh.
7 MR. SKLARIN: Yes?
8 A. Could be six. Yes.
9 Q. So when did it end?
10 A. Again, ending could have been
-- been of
11 January it could have January 2017, I
12 think.
-- withdrawn.
13 Q. Do you know where
14 What accounts were used to hold this
15 money, if you know?
16 A. I don't know.
17 Q. Do you know how much each condo owes
18 with respect to the retention plan?
19 A. I don't have the figure on top of my
20 head but the figure has been calculated.
21 Q. Are you familiar with the terms, in
22 the context of this litigation, "reconciliation
23 plans"?
24 A. Yes.
25 Q. What do you know those terms to
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
. 183
1 Dick Hack
2 Q. And McGrath was the property
3 management company at that time?
4 A. That's correct.
5 Q. And I want to make sure I am
6 understanding. Your understanding of the
7 revenue retention program was the period of time
8 when McGrath was not transferring to the HOA the
9 HOA's portion of the common charges?
10 A. That's correct.
11 Q. Okay. And I believe you said you
12 think that started happening sometime around
13 July of 2016?
14 A. Plus or minus, yes.
15 Q. Sure. Before, whatever time that
16 was plus or minus, before that started happening
17 is it your understanding that McGrath would
18 collect all of the money together and then would
19 make a transfer to the HOA account each month?
. 20 A. Again, that would be a question for
21 Tony Costa.
22 Q. You don't have any understanding of
23 how that worked?
24 A. Tony would explain it but I don't
25 want to put words in other people's mouths.
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
184
1 Dick Hack
2 Q. I'm just asking you as the president
--
3
4 A. Right.
-- is?
5 Q. what your understanding
6 A. I don't want to say something that's
7 erroneous.
8 Q. And you may be wrong, but my
9 question is what your understanding was of how
10 the process worked before the revenue retention
11 program?
12 A. I think Tony stated on numerous
13 occasions funds were commingled.
14 Q. That's not my question. I'm sorry.
15 So it's your understanding that at
16 no time was McGrath taking the HQA's portion of
17 the common charges and depositing it into an HOA
18 specific account?
19 A. I have no knowledge.
. 20 Q. Other than the HOA common charges
21 that the HOA is claiming were not in any way
22 transferred to the HOA during this revenue
23 retention period, is there any other moneys that
24 the HOA's claiming that the condos owe them?
25 A. Reconciliation.
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
. .
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
185
1 Dick Hack
2 Q. The reconciliation. Okay.
3 And the reconciliation, explain to
4 me your understanding of what that was. I don't
5 need the specifics.
6 A. In the transfer from Associa to
7 McGrath, a lot of people were still paying
8 McGrath where they should have been paying
9 Associa. So there should have been transferred
10 moneys, when the accounts were settled, from
11 McGrath over to Associa for the HOA common
12 charges.
13 Q. So one bucket of money is the HOA
14 common charges that McGrath was not transferring
15 to the HQA and then another bucket of money is
16 once you switched to a two-payment system, some
17 people were still paying McGrath while some
18 people were paying Associa?
19 A. Correct.
.. 20 Q. And so there's some that is
money
21 owed by the condos, arguably is the HOA's
22 position, to the HOA because it went to McGrath
23 instead of Associa?
24 A. There was a term that you used that
25 I don't agree with. I don't think it's
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
186
1 Dick Hack
2 arguably, it's a fact.
3 Q. That's the HOA's position?
4 A. Yes.
5 Q. So other than the HOA common charges
6 that McGrath didn't transfer to the HOA and
7 moneys that homeowners paid to McGrath instead
8 of Associa, is there any other money that the
9 HOA is claiming that the condos owe it as part
10 of this case?
think make the case --
11 A. I you could
12 MR. SKLARIN: Objection to form.
13 MR. KOLBRENER: You can answer.
14 Q. You can answer.
15 A. A case can be made that during the
16 revenue retention plan and all the bills that
17 were being paid out of that, I think the number
18 was 650, I thought it was 570, that a lot of
19 those bills that were paid out of that account
20 could have indeed been condo bills. So
21 therefore you would have to go back and
22 determine what bills were paid out of that money
23 that were not necessarily the condos.
24 So I think you could do a forensic
25 I would not -- that's
audit, necessarily well,
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
187
1 Dick Hac k
-- determine how
2 down the road but to exactly
3 much of that money should have been earmarked
. 4 towards Condo I, the Glen and Meadows II and
5 then the HOA.
6 Q. And are you aware of whether anyone
7 has performed any kind of accounting to figure
8 that out?
9 A. Nobody that I consider to be a
10 professional.
11 Q. That's not my question.
12 A. Then no.
13 Q. Are you aware of anyone who has
14 tried to do that?
15 A. I think a couple of people have
16 tried to do that.
17 Q. Great. And who are those people?
18 A. I believe Hussein Khoder tried to do
19 that.
20 Q. Anyone else that you're aware has
21 tried to do that?
| 22 A. I don't know if Plimley was involved
23 with that or not, I can't answer that question.
24 Again, it's hard for me to always deal with
25 either rumors, innuendos or whatever the case
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
188
1 Dick Hack
2 may be.
3 Q. So it's possible that Mark Plimley
4 may have tried to do that at some point?
5 A. Possibly, yes.
6 Q. Anyone else that you've heard has
7 tried to do that?
8 A. No.
9 Q. To your knowledge has Associa
10 attempted to do that at all?
11 A. To my knowledge, no.
12 Q. Are any of those funds that may have
13 been used to pay condo bills part of the damages
14 that the HOA is seeking in this case?
15 A. Can't answer that question.
16 Q. Has the HOA had any discussions
17 about performing those calculations to figure
18 out what, if any, additional moneys might be
19 owed by the condos?
20 A. We've not had any direct
21 conversation pertaining to that at this point.
22 Q. Are there any indirect conversations
23 that you've had?
24 A. We just know that theoretically
25 there is that money out there that could be the
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
189
1 Dick Hack
2 HOA's.
3 Q. If money was budgeted to perform
4 certain specific repairs at one or more of the
5 condos and then those repairs or maintenance was
6 not performed, what's your understanding of what
7 was supposed to happen with those funds?
8 MR. KOLBRENER: Objection to the
9 form. You can answer the question.
10 A. I'm not sure I understand the
11 question.
12 Q. What, if anything, was supposed to
13 happen with money that was budgeted for certain
14 tasks that never happened?
15 A. I don't know -- I'm not sure what
16 you are to so I
--
referring
17 Q. If, let's say, moneys were earmarked
18 or budgeted, rather, to put new roofs at Meadows
19 II and for whatever reason roofs didn't end up
20 happening that year, what was supposed to happen
21 with that money?
22 A. I would not have access to the condo
23 budgets so I don't know.
24 Q. You wouldn't have access to the
25 condo budgets?
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
210
*
1 Dick Hack
2 reconciliation plan.
3 Q. The reconciliation plan. Let me ask
4 it even simpler.
S As you understand it and in the
6 context of the lawsuit being brought against my
7 client, has Meadows II made the HOA financially
8 whole?
9 A. Not on the revenue retention plan.
10 Q. And what's your understanding as to
11 what is owed, if anything?
12 it's a number -- I can't
A. Again,
13 remember if it's like 20,000, 25,000. It would
14 have been the six months of common charges that
15 were collected during that revenue retention
16 plan that were not distributed to the HOA.
17 Q. So is it your claim that anything
18 remains outstanding by my client to the HOA?
19 A. At this point, yes, the revenue
20 retention plan money.
21 Q. And you don't know the amount that
22 is?
23 A. Not off the top of my head.
24 Q. And what is that 20 or 25,000
dollars supposed to be -- strike that.
25
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
211
1 Dick Hack
2 What is that 20 or 25,000 dollars
3 supposed to represent?
4 A. The six months of common charges
. 5 that were collected by the condos that were not
6 distributed to the HQA.
7 Q. Can you point me to any document or
8 legal provision which says that Meadows II was
9 obligated under the law to distribute those six
10 months of common charges to the HOA?
11 A. I think there's a bylaw that states
12 every homeowner has to pay their HQA fees
13 contained within the bylaws. If you do not,
14 you're delinquent.
15 Q. Okay. So if I understood you
16 correctly before, it was the managing agent that
17 you contracted with, namely McGrath, who set up
18 this plan for the dues to be forwarded onto
19 individual condo units; correct?
20 A. Correct, they went into the condo
21 accounts.
22 Q. So this was the brainchild of
23 McGrath, as you understand it?
.. ,
24 A. That's my understanding.
25 Q. And that's the reason in principal
Curatolo Reporting, LLC (845)464-7734
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017
NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020
236
- 1
2 C E R T I F I C A T I O N
4
6 I, Lora J. Curatolo, Certified
7 Shorthand Reporter, Certificate No. 1031-1, and
8 Notary Public of the State of New York, do
9 hereby certify that I recorded stenographically
10 the proceedings herein at the time and place
11 noted in the heading hereof, and that the
12 foregoing transcript is true and accurate. to the
13 best of my knowledge, skill and ability.
14 IN WITNESS WHEREOF, I have hereunto
15 set my hand this 27th day of September 2019.
16
17
18
19 LORA J. CURATOLO, CSR
20
21
22
23
24
25
Curatolo Reporting, LLC (845)464-7734
Preview
FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 EXHIBIT F RECEIVED NYSCEF: 06/30/2020 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF DUTCHESS _____________---------------------------X BOARD OF MANAGERS OF VAN WYCK GLEN CONDOMINIUM, THE BOARD OF MANAGERS OF VAN WYCK MEADOWS CONDOMINIUM, a Condominium created pursuant to Article 9-B of the Real Property Law of the State of New York, on behalf of its unit owners, Plaintiffs, -against- Index No. 2017-50017 VAN WYCK AT MERRITT PARK HOMEOWNERS ASSOCIATION, INC., ANTHONY COSTA and DICK HACK, Defendants. ----------------------------------------X VAN WYCK AT MERRITT PARK HOMEOWNERS ASSOCIATION, INC., Third-Party Plaintiff, -against- THE BOARD OF MANAGERS OF VAN WYCK MEADOWS . CONDOMINIUM II, Third-Party Defendant. ----------------------------------------X EXAMINATION BEFORE TRIAL . of the Defendant, DICK HACK, held on September 11, 2019, commencing at 10:15 a.m., at the law offices of Handel & Carlini, LLP, 1984 New Hackensack Road, Poughkeepsie, New York, before Lora J. Curatolo, Certified Shorthand Reporter and Notary Public in and for the State of New York. --_________________-___-________________________ CURATOLO REPORTING, LLC (845)464-7734 curatolo.reporting@gmail.com FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 152 1 Dick Hack 2 "retention plan"? 3 A. As it relates to revenue retention 4 plan, yes. 5 Q. And what do you know that to be? | -- HOA funds were 6 A. That funds the 7 being withheld from the distribution from the 8 condos to the HOA. 9 Q. And when did that plan start? 10 A. Again, I really can't give you a 11 specific date. I believe it started in maybe 12 July of potentially 2016. But again, I could 13 have missed the years, quite honestly. 14 Q. Did all condos partake in this 15 retention plan? 16 A. Yes, they did. 17 Q. Whose idea was the retention plan? 18 A. That would just be an opinion. 19 Q. I'm sorry? 20 A. You want an opinion? 21 Q. If you know the answer, you can say know." 22 if. If you don't, you can say "I don't 23 A. Do you answer opinion or do you 24 answer fact? I don't have a fact who did it. 25 Q. Okay. How long was this plan in Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 153 1 Dick Hack 2 place? 3 A. I don't think longer than six, may 4 have been five. I don't know specifically. 5 Q. Five months? 6 A. Uh-huh. 7 MR. SKLARIN: Yes? 8 A. Could be six. Yes. 9 Q. So when did it end? 10 A. Again, ending could have been -- been of 11 January it could have January 2017, I 12 think. -- withdrawn. 13 Q. Do you know where 14 What accounts were used to hold this 15 money, if you know? 16 A. I don't know. 17 Q. Do you know how much each condo owes 18 with respect to the retention plan? 19 A. I don't have the figure on top of my 20 head but the figure has been calculated. 21 Q. Are you familiar with the terms, in 22 the context of this litigation, "reconciliation 23 plans"? 24 A. Yes. 25 Q. What do you know those terms to Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 . 183 1 Dick Hack 2 Q. And McGrath was the property 3 management company at that time? 4 A. That's correct. 5 Q. And I want to make sure I am 6 understanding. Your understanding of the 7 revenue retention program was the period of time 8 when McGrath was not transferring to the HOA the 9 HOA's portion of the common charges? 10 A. That's correct. 11 Q. Okay. And I believe you said you 12 think that started happening sometime around 13 July of 2016? 14 A. Plus or minus, yes. 15 Q. Sure. Before, whatever time that 16 was plus or minus, before that started happening 17 is it your understanding that McGrath would 18 collect all of the money together and then would 19 make a transfer to the HOA account each month? . 20 A. Again, that would be a question for 21 Tony Costa. 22 Q. You don't have any understanding of 23 how that worked? 24 A. Tony would explain it but I don't 25 want to put words in other people's mouths. Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 184 1 Dick Hack 2 Q. I'm just asking you as the president -- 3 4 A. Right. -- is? 5 Q. what your understanding 6 A. I don't want to say something that's 7 erroneous. 8 Q. And you may be wrong, but my 9 question is what your understanding was of how 10 the process worked before the revenue retention 11 program? 12 A. I think Tony stated on numerous 13 occasions funds were commingled. 14 Q. That's not my question. I'm sorry. 15 So it's your understanding that at 16 no time was McGrath taking the HQA's portion of 17 the common charges and depositing it into an HOA 18 specific account? 19 A. I have no knowledge. . 20 Q. Other than the HOA common charges 21 that the HOA is claiming were not in any way 22 transferred to the HOA during this revenue 23 retention period, is there any other moneys that 24 the HOA's claiming that the condos owe them? 25 A. Reconciliation. Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 . . NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 185 1 Dick Hack 2 Q. The reconciliation. Okay. 3 And the reconciliation, explain to 4 me your understanding of what that was. I don't 5 need the specifics. 6 A. In the transfer from Associa to 7 McGrath, a lot of people were still paying 8 McGrath where they should have been paying 9 Associa. So there should have been transferred 10 moneys, when the accounts were settled, from 11 McGrath over to Associa for the HOA common 12 charges. 13 Q. So one bucket of money is the HOA 14 common charges that McGrath was not transferring 15 to the HQA and then another bucket of money is 16 once you switched to a two-payment system, some 17 people were still paying McGrath while some 18 people were paying Associa? 19 A. Correct. .. 20 Q. And so there's some that is money 21 owed by the condos, arguably is the HOA's 22 position, to the HOA because it went to McGrath 23 instead of Associa? 24 A. There was a term that you used that 25 I don't agree with. I don't think it's Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 186 1 Dick Hack 2 arguably, it's a fact. 3 Q. That's the HOA's position? 4 A. Yes. 5 Q. So other than the HOA common charges 6 that McGrath didn't transfer to the HOA and 7 moneys that homeowners paid to McGrath instead 8 of Associa, is there any other money that the 9 HOA is claiming that the condos owe it as part 10 of this case? think make the case -- 11 A. I you could 12 MR. SKLARIN: Objection to form. 13 MR. KOLBRENER: You can answer. 14 Q. You can answer. 15 A. A case can be made that during the 16 revenue retention plan and all the bills that 17 were being paid out of that, I think the number 18 was 650, I thought it was 570, that a lot of 19 those bills that were paid out of that account 20 could have indeed been condo bills. So 21 therefore you would have to go back and 22 determine what bills were paid out of that money 23 that were not necessarily the condos. 24 So I think you could do a forensic 25 I would not -- that's audit, necessarily well, Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 187 1 Dick Hac k -- determine how 2 down the road but to exactly 3 much of that money should have been earmarked . 4 towards Condo I, the Glen and Meadows II and 5 then the HOA. 6 Q. And are you aware of whether anyone 7 has performed any kind of accounting to figure 8 that out? 9 A. Nobody that I consider to be a 10 professional. 11 Q. That's not my question. 12 A. Then no. 13 Q. Are you aware of anyone who has 14 tried to do that? 15 A. I think a couple of people have 16 tried to do that. 17 Q. Great. And who are those people? 18 A. I believe Hussein Khoder tried to do 19 that. 20 Q. Anyone else that you're aware has 21 tried to do that? | 22 A. I don't know if Plimley was involved 23 with that or not, I can't answer that question. 24 Again, it's hard for me to always deal with 25 either rumors, innuendos or whatever the case Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 188 1 Dick Hack 2 may be. 3 Q. So it's possible that Mark Plimley 4 may have tried to do that at some point? 5 A. Possibly, yes. 6 Q. Anyone else that you've heard has 7 tried to do that? 8 A. No. 9 Q. To your knowledge has Associa 10 attempted to do that at all? 11 A. To my knowledge, no. 12 Q. Are any of those funds that may have 13 been used to pay condo bills part of the damages 14 that the HOA is seeking in this case? 15 A. Can't answer that question. 16 Q. Has the HOA had any discussions 17 about performing those calculations to figure 18 out what, if any, additional moneys might be 19 owed by the condos? 20 A. We've not had any direct 21 conversation pertaining to that at this point. 22 Q. Are there any indirect conversations 23 that you've had? 24 A. We just know that theoretically 25 there is that money out there that could be the Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 189 1 Dick Hack 2 HOA's. 3 Q. If money was budgeted to perform 4 certain specific repairs at one or more of the 5 condos and then those repairs or maintenance was 6 not performed, what's your understanding of what 7 was supposed to happen with those funds? 8 MR. KOLBRENER: Objection to the 9 form. You can answer the question. 10 A. I'm not sure I understand the 11 question. 12 Q. What, if anything, was supposed to 13 happen with money that was budgeted for certain 14 tasks that never happened? 15 A. I don't know -- I'm not sure what 16 you are to so I -- referring 17 Q. If, let's say, moneys were earmarked 18 or budgeted, rather, to put new roofs at Meadows 19 II and for whatever reason roofs didn't end up 20 happening that year, what was supposed to happen 21 with that money? 22 A. I would not have access to the condo 23 budgets so I don't know. 24 Q. You wouldn't have access to the 25 condo budgets? Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 210 * 1 Dick Hack 2 reconciliation plan. 3 Q. The reconciliation plan. Let me ask 4 it even simpler. S As you understand it and in the 6 context of the lawsuit being brought against my 7 client, has Meadows II made the HOA financially 8 whole? 9 A. Not on the revenue retention plan. 10 Q. And what's your understanding as to 11 what is owed, if anything? 12 it's a number -- I can't A. Again, 13 remember if it's like 20,000, 25,000. It would 14 have been the six months of common charges that 15 were collected during that revenue retention 16 plan that were not distributed to the HOA. 17 Q. So is it your claim that anything 18 remains outstanding by my client to the HOA? 19 A. At this point, yes, the revenue 20 retention plan money. 21 Q. And you don't know the amount that 22 is? 23 A. Not off the top of my head. 24 Q. And what is that 20 or 25,000 dollars supposed to be -- strike that. 25 Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 211 1 Dick Hack 2 What is that 20 or 25,000 dollars 3 supposed to represent? 4 A. The six months of common charges . 5 that were collected by the condos that were not 6 distributed to the HQA. 7 Q. Can you point me to any document or 8 legal provision which says that Meadows II was 9 obligated under the law to distribute those six 10 months of common charges to the HOA? 11 A. I think there's a bylaw that states 12 every homeowner has to pay their HQA fees 13 contained within the bylaws. If you do not, 14 you're delinquent. 15 Q. Okay. So if I understood you 16 correctly before, it was the managing agent that 17 you contracted with, namely McGrath, who set up 18 this plan for the dues to be forwarded onto 19 individual condo units; correct? 20 A. Correct, they went into the condo 21 accounts. 22 Q. So this was the brainchild of 23 McGrath, as you understand it? .. , 24 A. That's my understanding. 25 Q. And that's the reason in principal Curatolo Reporting, LLC (845)464-7734 FILED: DUTCHESS COUNTY CLERK 06/30/2020 06:51 PM INDEX NO. 2017-50017 NYSCEF DOC. NO. 354 RECEIVED NYSCEF: 06/30/2020 236 - 1 2 C E R T I F I C A T I O N 4 6 I, Lora J. Curatolo, Certified 7 Shorthand Reporter, Certificate No. 1031-1, and 8 Notary Public of the State of New York, do 9 hereby certify that I recorded stenographically 10 the proceedings herein at the time and place 11 noted in the heading hereof, and that the 12 foregoing transcript is true and accurate. to the 13 best of my knowledge, skill and ability. 14 IN WITNESS WHEREOF, I have hereunto 15 set my hand this 27th day of September 2019. 16 17 18 19 LORA J. CURATOLO, CSR 20 21 22 23 24 25 Curatolo Reporting, LLC (845)464-7734