Todd Creek Farms Homeowners Association Lawsuit

In the quiet suburb of Brighton, Colorado, the neighbourhood of Todd Creek Farms has become the scene of a complex legal battle between its homeowners and their homeowners association. What began as concerns about governance and contracts escalated into a full-blown lawsuit, billions in vendor payments (or at least hundreds of thousands) and a dramatic bankruptcy filing by the association.
This article brings you a human-centered, detailed explanation of how things unfolded, what the core issues are, how they affect homeowners, and what lessons can be drawn. Whether you live in this community or another one overseen by an HOA, the story has relevance.

Community and governance background of Todd Creek Farms

The subdivision known as Todd Creek Farms spans roughly 750 acres and includes about 370 lots. It is governed by a homeowners association incorporated as a nonprofit entity under Colorado law. The HOA is charged with duties typical for such associations: managing common-area maintenance, enforcing covenants, collecting assessments and engaging vendors for services.
Over the years, the community has built up infrastructure like trails, landscaping, perhaps even oil & gas leases on undeveloped land. Indeed the association’s board reportedly cited income from oil and gas activities as part of its revenue context. But as the governance demands grew and vendor contracts ballooned, friction emerged between the board and a segment of homeowners. The governance structure, while standard, became tested when transparency and accountability issues were raised.

The trigger events that led to the lawsuit

The initial sparks of conflict emerged when homeowners began questioning board-actions on several fronts. First, a landscaping vendor contract awarded in 2020 became the focal point. The board awarded the contract to Method Landscaping Services, LLC, and payments reportedly reached approximately $214,719 in 2020. Homeowners later claimed the estimated cost of that work had been roughly $27,000, so the difference raised eyebrows.
Second, in November 2022 two board members resigned and then were immediately re‐appointed to each other’s terms, effectively extending term limits and avoiding a straightforward election. Homeowners regarded that as a manipulation of the governing rules Todd Creek Farms Homeowners Association Lawsuit. The combination of large vendor payments, governance maneuvers, and alleged lack of response to record requests created an environment ripe for legal action.

The parties involved and their roles

This dispute features multiple actors, each with defined or contested roles. Here is a table summarising their positions:

Party	Role	Key issues involved
Todd Creek Farms Homeowners Association (HOA)	Governing entity of the community	Claims it operated properly; filed for Chapter 11 to protect homeowners.
Board of Directors (including President)	Decision‐makers for the HOA	Alleged by homeowners to have manipulated terms and awarded vendor contracts improperly.
Method Landscaping Services, LLC	Vendor contracted for major landscaping work	Homeowners allege undisclosed ties between vendor and board president.
Plaintiffs (group of homeowners)	Suing the HOA on behalf of the association (derivative suit)	Alleged breach of fiduciary duty and conflict of interest.
Bankruptcy Court & Creditors	External oversight now involved	Overseeing the Chapter 11 process and verifying whether the filing was legitimate.

Each of these parties intersects with key governance, financial and legal questions in this case.

Timeline of key milestones in the dispute

To make sense of how events progressed, it helps to view a timeline of the major milestones:

Date	Event	Significance
2020	Award of large landscaping contract (~$214k)	Raised questions about vendor selection and cost escalation.
November 2022	Two board members resign and are re-appointed to swap terms	Perceived by homeowners as a governance red flag. CBS News
April 14, 2023	Verified complaint filed in Adams County, Case No. 2023CV03537	Formal initiation of the lawsuit by homeowners.
July 15, 2025	HOA files for Chapter 11 bankruptcy	A dramatic step shifting the legal dynamics of the dispute. HOA Leadership Network

This timeline helps place the dispute in context and shows how governance concerns turned into legal and financial crises.

Allegations made by homeowners against the HOA

The homeowners’ group brought forward a number of serious allegations against the board of the HOA. Among them:

Breach of fiduciary duty: Homeowners claim the board acted in its own interests rather than the community’s.
Conflict of interest: The board president, Jason Pardikes, was alleged to have undisclosed financial ties to the vendor Method Landscaping.
Excessive expenditures: The contract cost apparently ballooned far beyond original estimates. – The estimate of $27,000 vs actual payments of over $200,000 triggered concerns.
Failure to provide records: Homeowners say their information requests were ignored, impeding transparency.
Governance manipulation: The “swap of terms” board maneuver in late 2022 is alleged to have circumvented proper electoral oversight.
Legal cost burden: The homeowners argue that the community was bearing the cost of defending a board that may have acted improperly.

These allegations form the basis of the derivative lawsuit and speak to fundamental governance and fiduciary questions in HOA management.

How the HOA has responded and defended itself

In opposition to the homeowners’ allegations, the HOA and its board have taken several defensive positions:

Denial of wrongdoing: The board has stated there is no evidence of secret vendor ties or improper contracts. According to the board, audits and financial statements show no irregularities.
Strategic bankruptcy filing: The board claims the Chapter 11 filing was not due to insolvency but rather due to massive legal defense costs and uninsurable risk.
Continuation of services: The HOA asserts that despite the dispute, it continues to maintain common-area services and that homeowners’ assessments remain applied to ongoing operations.
Emphasis on community consensus: The board claimed that more than 50 percent of homeowners signed a petition to support ending the legal battle.

These responses reflect the board’s effort to manage reputational, financial and operational risk in a highly charged environment.

Financial and operational consequences for the community

The unfolding dispute has tangible repercussions for the residents of Todd Creek Farms. Key areas of impact include:

Legal and settlement cost burden

The HOA has reportedly spent nearly $900,000 in legal fees defending the lawsuit over a period of months. For a community of roughly 370 lots, this equates to significant per-homehold cost or potential special assessments.

Risk of special assessments and services interruption

When an association’s budget is strained, it may defer maintenance, raise assessments or reduce amenities. The HOA’s bankruptcy filing suggests a recognition that continuing the fight risked broader financial harm to the community.

Impacts on property value and homeowner confidence

Governance instability and law suits tend to reduce buyer confidence in a community and may affect resale value. Homeowners may worry about hidden liabilities, upcoming assessments and whether the board’s actions were in their best interest.

Vendor and contract scrutiny

Large vendor payments and questions about how they were awarded can affect not only budgeting but also future vendor negotiations and association trust. The community may face higher bids in the future if vendors view the association as high-risk.

Here is a financial snapshot table capturing some of these costs and metrics:

Metric	Approximate Value	Notes
Legal defence costs reported	~$800 k–$900 k	Over a 2-year period.
Number of homeowner-lots in community	~370 lots	Approximate size of subdivision.
Share of homeowners involved in lawsuit	~21 homes (~5 %)	From media reporting.

This presents a picture of significant financial strain and potential operational risk for the association and its members.

Impact of the Chapter 11 filing by the HOA

The decision by the HOA to file for Chapter 11 bankruptcy represents a major turning point in this dispute. Several implications are worth noting:

Automatic stay: Once filed, the bankruptcy triggers an automatic stay of many lawsuits and creditor claims which means the homeowner lawsuit is now held in abeyance or subject to different handling.
Legitimacy review: Media and plaintiffs alike question whether the bankruptcy filing was genuine or a tactical move to avoid accountability. One attorney asked: “If they’re innocent, why spend nearly a million dollars to defend a lawsuit you could end with bank records?”
Services continuity: The HOA insists that maintenance and amenities remain uninterrupted despite the filing. Homeowners need to monitor whether this holds true over time.
Voting and governance: Bankruptcy may shift power from the board to bankruptcy court oversight or require greater transparency to creditors. This changes the dynamic of local governance for the homeowners.
Homeowner exposure: As the HOA reorganises under bankruptcy, homeowners may face new assessments, renegotiated vendor contracts, or altered covenants, all of which affect their financial and living conditions.

In short, the bankruptcy filing re-sets the playing field and introduces a new layer of complexity for Todd Creek Farms Homeowners Association Lawsuit residents and the board alike.

Broader lessons for HOAs and residents

The case of Todd Creek Farms offers important take-aways for associations and homeowners in general. These lessons include:

Transparency and governance matter: Boards must ensure vendor selections, term swaps and financial disclosures are clearly documented and shared with homeowners. Without that there is risk of legal exposure and community mistrust.
Conflict of interest must be avoided or at least clearly disclosed: Board members must avoid vendor relationships where they may benefit financially—and if such relationships exist they must be transparent and approved.
Legal costs can escalate rapidly: Even a governance dispute can escalate to hundreds of thousands of dollars in legal fees, threatening the community’s finances. Proactive dispute resolution pays.
Member involvement is key: Homeowners need to review budgets, attend meetings, ask questions and vote. That helps keep the board aligned with member interest rather than drifting into unrestrained power.
Bankruptcy is a tool—but also a warning sign: While filing for Chapter 11 may protect an association from immediate liability, it signals serious governance or financial trouble and may not resolve underlying issues.
Contract-management is critical: Vendor contracts must be closely monitored, competitive bidding pursued, and cost escalations justified. Without this oversight, large payments may create suspicion and liability.

These lessons apply not just to Todd Creek Farms but to any community governed by a homeowners association, anywhere.

Legal & regulatory context in Colorado for associations

Homeowners associations in Colorado are regulated under statutes and case law that provide rights and responsibilities to both associations and homeowners. Some key points:

The Colorado Common Interest Ownership Act (CCIOA) governs many aspects of HOAs, including disclosure of records, budgets, assessments, and governance procedures.
Homeowners can bring derivative suits on behalf of the association when they believe the board has failed to act in the community’s interest. The Todd Creek Farms suit is such a derivative action.
Board members owe fiduciary duties to the association and must act in good faith, with due care, and in the best interest of homeowners. Failure to do so opens them to liability.
Homeowners have rights to inspect financial records, vendor contracts, meeting minutes and other key documents. If those rights are obstructed, the board may face legal action.
When an association files for bankruptcy, state law still intersects with Todd Creek Farms Homeowners Association Lawsuit federal bankruptcy law and homeowners must be aware of how their rights, assessments and property interests may be affected.

With these legal tools in place, homeowners may better understand and anticipate governance issues—and boards may better structure their practices to avoid liability.

What residents of Todd Creek Farms (and similar HOAs) can do now

If you are a resident in the Todd Creek Farms community—or any HOA where governance issues are emerging—here are concrete steps you can take:

Request the records: Ask for budgets, vendor contracts, board minutes and audit reports. Make sure you receive them in a timely fashion.
Attend board meetings: Show up at homeowner meetings, ask questions about large expenditures or contract awards, and ensure your voice is heard.
Review governing documents: Read your community’s covenants, bylaws and articles of incorporation. Understand term limits, vendor procurement rules, and assessment processes.
Engage with other homeowners: Often issues gain traction when more than one homeowner participates. Consider forming a homeowners committee for oversight.
Seek legal advice: If you believe there is a breach of fiduciary duty or undisclosed vendor relationship, consult an attorney experienced in HOA law.
Monitor services and assessments: Watch for service reductions, large special assessments or unforeseen vendor cost increases. These could signal deeper problems.
Vote thoughtfully: When board elections occur, review candidate backgrounds, ask for statements, and aim to elect directors committed to transparency.
Stay informed on bankruptcy proceedings: If your association is in Chapter 11, attend creditor meetings if allowed, review disclosure statements, and monitor how your assessments and rights may change.
Document concerns: If you receive notices, letters, or have communications about vendor relationships or board actions, retain them and take note of dates and content.

By being proactive rather than reactive, homeowners can better protect their interests and help steer their community toward stability and trust.

Conclusion & Call to Action

The saga of the Todd Creek Farms homeowners association lawsuit presents a cautionary tale of how governance lapses, large vendor contracts, and financial opacity can lead an entire community down a path of legal and financial risk. For the homeowners involved, the dispute has meant uncertainty, cost, and disruption. For the board, it has meant scrutiny, risk, and in the end a bankruptcy filing.
If you live in this community or any homeowners association governed setting, now is the time to engage, to ask probing questions, to demand transparency, and to act while you still have influence. The health of an HOA isn’t just about landscaping and amenities Todd Creek Farms Homeowners Association Lawsuit—it’s about governance, accountability and the trust between homeowners and their board.

Frequently Asked Questions (FAQ)

Q1: What exactly is a derivative lawsuit in the context of an HOA?
A derivative lawsuit is where homeowners bring a claim on behalf of the homeowners association when the board has failed to act. In the Todd Creek Farms case homeowners allege the board breached fiduciary duty and so are suing on behalf of the HOA.

Q2: Does an HOA filing for Chapter 11 mean it is insolvent?
Not always. Filing for Chapter 11 can be a strategic decision to reorganise, delay creditor claims or limit liability. The board of Todd Creek Farms says the filing was due to uninsurable legal risk rather than unpaid bills.

Q3: Can homeowners still sue the board if the HOA is bankrupt?
Yes—but the bankruptcy triggers the automatic stay and may require claims to be filed in bankruptcy court. Homeowners should consult legal counsel to understand their options.

Q4: What happens to my monthly assessment if the HOA is in bankruptcy?
It depends. The association still needs funding to maintain services. The bankruptcy process may result in renegotiated contracts, deferred maintenance, or special assessments. Monitor your HOA’s disclosures and meetings.

Q5: How can I tell if my HOA board is acting responsibly?
Look for practices such as: transparent vendor bidding, open records and minutes, competitive contracts, proper term limits for board members, and clear communication with homeowners. If these are missing you’ll want to increase scrutiny.