Homeowner Association Sues Property Management Company

Case: 61CI1:19-cv-00272-a Document #: 9 Filed: 11/11/2019 Page 1 of 18
IN THE CIRCUIT COURT OF RANKIN COUNTY, MISSISSIPPI
BRIDGEWATER OWNER’S PLAINTIFF

ASSOCIATION, INC., A MISSISSIPPI
NON-PROFIT CORPORATION
V. CAUSE NO. 19-272
RIDGWAY, LANE & ASSOCIATES, INC.,

DAVID L. LANE, DAVID W. LANE AND JOHN DOE
DEFENDANTS NOS. 1 THROUGH 5 DEFENDANTS
FIRST AMENDED COMPLAINT
Bridgewater Owner’s Association, Inc., a Mississippi non-profit corporation (“BOA”),
files this First Amended Complaint (“Complaint”) against Ridgway, Lane & Associates, Inc.
(“Ridgway Lane”), David L. Lane (herein, “David Lane”), David W. Lane (herein, “David W.
Lane”) and John Doe Defendants 1 through 5 (collectively, “Defendants”), and in support hereof,
BOA states as follows:
Nature of Case
1. Ridgway Lane entered into a property management agreement with BOA and its
Board to manage the Bridgewater Subdivision in Ridgeland, Mississippi. David Lane was
Ridgway Lane’s primary contact with BOA who oversaw formation of the property management
agreement between Ridgway Lane and BOA and presided over periodic BOA meetings to
discuss financial status of BOA and other routine business. David W. Lane, David Lane’s son,
also worked at Ridgway Lane. Among Defendants’ duties were maintenance of operating and
other accounts owned by BOA, payment of ongoing operating expenses, and management and
control of such accounts in trust for the benefit of BOA. Instead of utilizing the accounts as
intended, Ridgway Lane and certain of its representatives transferred hundreds of thousands of
dollars of funds from the BOA-owned accounts to other accounts, including Ridgway Lane’s
own accounts that were unrelated to the BOA-owned accounts maintained by Ridgway Lane. In
other words, Ridgway Lane transferred BOA money into separate Ridgway Lane-owned
accounts without BOA’s knowledge, consent or authority, and has not returned the BOA’s
money to BOA-owned accounts. These transfers and theft of BOA funds in the accounts
constitute breach of contract, breach of fiduciary duty, conversion, fraud, fraudulent
concealment, negligence, gross negligence and other claims against Defendants for which BOA
is entitled to relief in this action in the form of a judgment for compensatory and punitive
damages, attorney fees, costs and other relief, including an accounting, against Ridgway Lane,
David Lane, David W. Lane and others as yet unidentified and as referred to herein as John Doe
Defendants 1 through 5.
Parties, Jurisdiction and Venue
2. BOA is a non-profit corporation organized and existing under the laws of
Mississippi with its principal place of business in Ridgeland, Mississippi.
3. Ridgway Lane is a corporation organized and existing under the laws of
Mississippi, with its principal place of business at 632 Lakeland Drive, Suite B, Flowood,
Mississippi. Ridgway Lane may be served with process by service upon its agent for service of
process, David L. Lane, at 632 Lakeland Drive, Suite B, Flowood, Mississippi.
4. David L. Lane is an adult resident citizen of Madison County, Mississippi, who
may be served with process at 632 Lakeland Drive, Suite B, Flowood, Mississippi, or at his
residence address at 106 Alicetown Cove, Ridgeland, Mississippi 39157.
5. David W. Lane is an adult resident citizen of Madison County, Mississippi, who
may be served with process at 632 Lakeland Drive, Suite B, Flowood, Mississippi, or at his
residence address at 408 Meadowgreen Lane, Canton, Mississippi 39046.
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6. John Doe Defendants 1 through 5 are persons and/or entities, whose identities are
unknown to BOA and who participated in, committed, aided in and abetted the fraud and other
misconduct described herein. These Defendants are hereby named as fictitious parties pursuant
to Miss. R. Civ. P. 9(h) until such time as their true names are discovered and can be substituted
in the place of John Doe Defendants.
7. This Court has jurisdiction of the parties and the subject matter of this action.
8. Venue is proper because Ridgway Lane is located in Rankin County, Mississippi.
Factual Allegations
9. For many years, Ridgway Lane has served as property manager for BOA. The
terms of Ridgway Lane’s service and its obligations to BOA are set forth in a Management
Agreement (the “Agreement”) (Ex. 1) which provides, among other things, the following:
a. “[Ridgway Lane] shall…maintain in a bank, approved by the Board, and
as the Association’s sole property, a separate bank account (“Operating Account”) as Agent for
the Association for the deposit of monies received by the Agent on behalf of the Association.
This account shall at all times be titled ‘Ridgway Lane & Associates in Trust for [BOA]’.” (Ex.
1, paragraph 4.b.).
b. “The Board may designate other parties in addition to Agent to be
signatory parties to such account.” (Ex. 1, paragraph 4.b.).
c. “[Ridgway Lane] shall keep and maintain complete and accurate records
on a ‘cash basis’…[Ridgway Lane] shall insure such control over accounting and financial
transactions to protect [BOA’s] assets from theft, error or fraudulent activities on the part of
[Ridgway Lane’s] employees, agents or managers.” (Ex. 1, paragraph 4.k.).
d. “[Ridgway Lane] shall prepare and render to the Board…a monthly
itemized report…of income and expenditures…Upon request, [Ridgway Lane] shall provide
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Board with such supporting documentation from the Monthly Operating Report as the Board
requires…” (Ex. 1, paragraph 4.l.).
e. “[Ridgway Lane] shall make all bank statements, copies of invoices, and
reconciliations available to [BOA] upon request and in accordance with the terms and conditions
of this Agreement.” (Ex. 1, paragraph 4.m.).
f. [Ridgway Lane] shall maintain at its expense…a fidelity bond in the
amount of $50,000 for any persons under [Ridgway Lane’s] control with access to Bank
accounts…” (Ex. 1, paragraph 6).
g. “Each party agrees that the other may at reasonable times inspect,
examine, and copy any such documents and records [all books and records relating to the
operation of the Property]” (Ex. 1, paragraph 7).
h. “[BOA] reserves the right for its members or representatives to conduct
reviews, examinations and audits at any time, without prior notice, during normal business hours
of the book and records maintained for [BOA] by [Ridgway Lane] regardless of where books
and records are located.” (Ex. 1, paragraph 7).
10. Events of default under the Agreement include the following:
a. “failure by [Ridgway Lane] to pay to the Association, or to account for
any money in bank accounts established herein” (Ex. 1, paragraph 8.a.).
b. “failure by [Ridgway Lane]…, after twenty (20) days written notice from
[BOA] to fully perform, fulfill or observe any representations, covenants or conditions set forth
[in the Agreement] required of such part [sic]” (Ex. 1, paragraph 8.b.).
c. Regarding events of default, the Agreement provides: “Upon the
occurrence of any event of default the non-defaulting party may, without prejudice to any other
rights which it may have at law or in equity, terminate this Agreement by giving written notice
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thereof to the defaulting party. This Agreement shall terminate upon actual delivery of said
notice.” (Ex. 1, paragraph 8 at p. 10).
11. On September 16, 2019, the BOA met with David Lane of Ridgway Lane at the
regularly-scheduled Board meeting. Just prior to the meeting, Ridgway Lane provided the
August 2019 financial reports to the Board.
12. By email of September 18, 2019, BOA Board Member and Treasurer, Cindy
Dunbar, presented David Lane with certain reasonable questions concerning Ridgway Lane’s
management practices, including questions about financial statements and reporting by Ridgway
Lane to BOA as compared with bank statement information, and related errors and missing
information in the reports. Ms. Dunbar questioned various protocols employed by Ridgway
Lane and missing Board minutes on the website maintained by Ridgway Lane for the BOA. Ms.
Dunbar provided David Lane/Ridgway Lane specific examples of financial report errors for
review.
13. By email of September 24, 2019, Ms. Dunbar/BOA presented David
Lane/Ridgway Lane with additional specific questions regarding material discrepancies between
financial reports generated by Ridgway Lane and purported bank statements of BOA’s accounts
with Community Bank that had been provided by David Lane/Ridgway Lane with the reports.
14. By email of October 14, 2019, Ms. Dunbar/BOA requested that David
Lane/Ridgway Lane respond to the BOA’s questions by Wednesday October 16, 2019. Also, on
October 14, 2019, Ms. Dunbar/BOA provided David Lane/Ridgway Lane with a Memorandum
detailing some of the apparent financial irregularities. These included, among others, a
purported $94,928.37 discrepancy regarding BOA’s Operating Account balance when comparing
Ridgway Lane’s financial reports with purported BOA bank statements at Community Bank.
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15. By email of October 15, 2019, David Lane/Ridgway Lane responded, “I just can’t
possibly meet your deadline!” and represented he was “spending every spare moment working
on Bridgewater.” In fact, and contrary to this representation and their obligations under the
Agreement, David Lane and Ridgway Lane were not doing anything to address BOA’s concerns,
but instead were delaying the provision of information needed for understanding and determining
the specifics of the financial irregularities in the reports generated by David Land/Ridgway Lane
which themselves misrepresented the true status of BOA’s finances and account balances. David
Lane/Ridgway Lane concealed from BOA and its representatives the true status of BOA’s
accounts and financial condition by affirmatively representing in reports account balances that
did not exist or significantly overstating in reports the true account balances.
16. By email of October 17, 2019, Ms. Dunbar/BOA demanded that Ridgway Lane
explain the financial discrepancies and that BOA would exercise its right under the Agreement to
“add at least two (2) officers as signators on all BOA financial accounts at the Monday October
21, 2019 Board continuance meeting.” BOA access to the accounts was limited because they
were established by David Lane/Ridgway Lane with, according to Community Bank, Ridgway
Lane as customer with the funds being held for the benefit of BOA.
17. As such, and since BOA was not the “customer” of Community Bank regarding
the accounts, BOA had no direct access to the accounts or related balance and transaction
information and required cooperation from David Lane/Ridgway Lane to access BOA’s own
account information at Community Bank. Yet David Lane/Ridgway Lane still refused to provide
BOA and its representatives immediate access to BOA accounts and related information.
Instead, David Lane/Ridgway Lane intentionally used Ridgway Lane’s status as “customer” on
the accounts to impede discovery of the true status of BOA’s accounts and to further conceal the
fraudulent misconduct by Defendants in siphoning funds from BOA accounts.

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18. On or about October 18, 2019, Community Bank provided David Lane/Ridgway
Lane with information needed to add BOA signatories to the BOA’s accounts with Community
Bank.
19. On October 21, 2019, the BOA met and authorized Ms. Dunbar, Board Treasurer,
and Erik Hearon, Board President, to become signatories on the BOA accounts at Community
Bank. At this meeting, David Lane/Ridgway Lane communicated his and Ridgway Lane’s
resignation as BOA’s property manager effective December 31, 2019, and David Lane/Ridgway
Lane failed and refused to go forward with the addition of certain BOA members as signatory to
the BOA accounts at Community Bank, so that immediate access to the accounts could be gained
by BOA.
20. From and after discovery of the financial irregularities associated with the
financial reports provided by David Lane/Ridgway Lane, BOA continuously and repeatedly
sought from David Lane/Ridgway Lane both access to its bank accounts and information related
to the financial irregularities noted in financial reports provided by David Lane/Ridgway Lane.
David Lane/Ridgway Lane refused to comply with BOA’s requests for access to their accounts
and information with which to both address apparent and observed financial irregularities and to
discover the extent of financial losses associated with David Lane’s/Ridgway Lane’s
management of Bridgewater. In this regard, David Lane/Ridgway Lane continued to conceal the
fraud and misconduct that had occurred concerning BOA’s accounts maintained by Ridgway
Lane in trust for BOA.
21. David Lane/David W. Lane/Ridgway Lane/John Doe Nos. 1-5:
a. Failed or refused to cooperate and follow BOA’s instructions regarding
addition of certain Board members to the BOA’s accounts as signatories;
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b. Failed or refused to provide account balance information on accounts
owned by BOA and maintained at Community Bank, including an operating account and a
reserve account;
c. Failed or refused to provide information concerning the balance, location
and transaction history of a certificate of deposit owned by BOA and maintained at Community
Bank.
d. Failed or refused to provide BOA and its representatives with access to,
and control over, BOA’s accounts at Community Bank, despite BOA’s repeated requests;
e. Failed or refused to provide access to BOA records held and maintained
by Ridgway Lane.
f. Failed or refused to explain the significant financial irregularities and
discrepancies in the financial reports that have been brought to Ridgway Lane’s attention.
g. Transferred (or allowed the transfer) and conversion of funds held in trust
for BOA’s benefit to Ridgway Lane-owned accounts and other accounts, persons or entities.
h. Failed to monitor BOA account activity Ridgway Lane personnel and
therefore permitted the conversion and transfer of BOA funds to other accounts, persons or
entities.
i. Provided false and misleading financial reports to BOA that concealed
conversion of funds from BOA accounts without BOA’s knowledge or consent or authority and
transfer of said funds to third-parties.
j. Failed to monitor the provision of financial reports to BOA which had the
effect of misleading BOA about the true status of its accounts and concealing the conversion of
funds from BOA accounts without BOA’s knowledge or consent or authority.
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22. David W. Lane wrote checks on BOA’s accounts at Community Bank that were
payable to the order of Ridgway Lane and BOA funds were thereby transferred to Ridgway
Lane-owned accounts, all without the knowledge or consent or authority of BOA. Other
transfers occurred without checks being written.
23. Ridgway Lane, David Lane and David W. Lane breached Ridgway Lane’s
obligations under the Agreement to BOA.
24. On October 29, 2019, given Defendants’ breach of the Agreement, their refusal to
provide desperately needed bank account information to BOA’s representatives, and their clear
obstruction of BOA’s efforts to discover the extent of apparent financial losses related to its
accounts at Community Bank, BOA terminated its Agreement with Ridgway Lane. (Ex. 2, Letter
from Roy Liddell/Wells Marble & Hurst, PLLC to David Lane/Ridgway Lane).
25. After termination of the Agreement, BOA and its representatives continued
pressing David Lane/Ridgway Lane for access to BOA accounts at Community Bank; and on
November 1, 2019, David Lane/Ridgway Lane finally agreed to meet with BOA and its
representatives at Community Bank to transfer access to, and control over, the BOA accounts to
BOA and its representatives. At that meeting, BOA obtained control over and access to its
accounts. By this time, however, significant financial damage to BOA and its membership had
occurred. BOA and its Board and representatives were at all times diligent in discovering the
fraud and other misconduct alleged herein, and they discovered same as soon as they were
reasonably able to do so.
26. Upon review of account information available, BOA and its representatives
discovered that, in 2019 alone, funds in its operating and reserve accounts in an amount
exceeding $100,000 that were held by David Lane/Ridgway Lane in trust for BOA and its
membership had been transferred to third-parties without BOA’s knowledge or consent. This
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was done by checks written on BOA accounts with signatures of Ridgway Lane representatives,
including that of David W. Lane, that were made payable the order of Ridgway Lane. BOA’s
investigation is ongoing as to additional losses arising from conversion of BOA account funds.
27. BOA and its representatives also discovered that a certificate of deposit it owned
in an amount of approximately $117,000 that was maintained at Community Bank by David
Lane/Ridgway Lane in trust for the benefit of BOA and its membership was no longer on deposit
at Community Bank as of November 1, 2019 and had disappeared. Efforts to track the certificate
of deposit and its transaction history and any related proceeds are under way, but neither the
certificate of deposit nor its proceeds have been located to date. David Lane represented to BOA
and its representatives that he is unable to locate the BOA’s certificate of deposit, but he has not
provided any other information regarding the transaction history, location or status of BOA’s
said certificate of deposit.
28. BOA’s financial losses arising from the conversion and unauthorized transfer of
funds out of its accounts at Community Bank and other misconduct set forth herein exceed
$500,000. Such losses were caused and/or contributed to by the actions and inactions of David
Lane, David W. Lane, and/or Ridgway Lane and John Does 1 through 5, all as set forth herein.
29. John Doe Defendants 1 through 5, who are as yet unidentified, either directly or
indirectly engaged in, or aided and abetted others in, the unauthorized removal and conversion of
BOA funds from its operating, reserve and certificate of deposit accounts maintained in trust by
Ridgway Lane for the benefit of BOA and its membership. They also directly or indirectly
engaged in, or aided and abetted others in, the affirmative fraudulent concealment of such
conduct by Defendants.
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Claims for Relief
Count I-Breach of Contract
30. BOA incorporates herein by reference each of the foregoing allegations of its
Complaint.
31. Ridgway Lane was obligated under the Agreement to:
 Hold BOA accounts in trust for the benefit of BOA and its membership;
 Protect BOA accounts from unauthorized transfers of account funds;
 Maintain accurate financial reports relating to BOA accounts and BOA’s
financial condition generally;
 Provide accurate financial reports relating to BOA accounts and BOA’s
financial condition generally on a timely and regular basis;
 Make BOA records available to BOA and its representatives on request;
 Pay to BOA on BOA’s or its representatives’ request all funds in BOA
accounts;
 Cure any defaults in BOA’s obligations under the Agreement within
twenty (20) days’ notice;
 Maintain a fidelity bond to protect against financial loss to BOA; and
 Other obligations set forth in the Agreement.
32. Defendants breached and failed to satisfy each of the said obligations of Ridgway
Lane under the Agreement.
33. As a direct and proximate result of Defendants’ breach of Ridgway Lane’s
obligations under the Agreement, BOA has been damaged financially in an amount in excess of
$500,000 and has incurred additional loss in the form of expenses, attorney fees and other losses
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for all of which Defendants are liable to BOA. BOA therefore seeks judgment for such breach
against Defendants, jointly and severally, in an amount in excess of $500,000.
Count II—Breach of Fiduciary Duty
Complaint.
35. Defendants occupied a relationship of trust with BOA, its Board and its
membership that was fiduciary in nature.
36. BOA, the Board and its membership justifiably reposed trust in Defendants to
look out for BOA’s, the Board’s and BOA membership’s interests and to place said interests
over and above the interests of Defendants in the handling of BOA’s financial accounts and other
business interests.
37. By their actions and omissions and misconduct as herein described, Defendants
breached their fiduciary duty to BOA, its Board and its membership.
38. As a proximate result of such breach of fiduciary duty, BOA has been damaged
financially and otherwise in an amount in excess of $500,000 and has incurred additional loss in
the form of expenses, attorney fees and other losses for all of which Defendants are liable to
BOA. BOA therefore seeks judgment against Defendants, jointly and severally, for such breach
of fiduciary duty in an amount in excess of $500,000.
Count III—Conversion
Complaint.
40. The funds in BOA’s accounts with Community Bank were owned solely by BOA
and not by Ridgway Lane. Ridgway Lane held such funds in trust for BOA and its members.
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41. Due to Defendants’ actions and omissions as set forth herein and those of others
as yet to be identified, BOA’s funds in the accounts were misappropriated and converted from
the BOA accounts, and BOA’s access to and use and possession of said funds has been displaced
and prevented by Defendants’ conduct as alleged herein.
42. As a direct and proximate result of such conversion, BOA has been damaged
financially and otherwise in an amount in excess of $500,000 and has incurred additional loss in
the form of expenses, attorney fees and other losses for all of which Defendants are liable to
BOA. BOA therefore seeks judgment against Defendants, jointly and severally, for such
conversion in an amount in excess of $500,000.
Count IV—Fraud
Complaint.
44. David Lane and Ridgway Lane represented to BOA, its Board and its membership
that they would protect and properly account for BOA’s funds in accounts maintained at
Community Bank and pay said funds to BOA on demand. David Lane and Ridgway Lane also
represented they would provide accurate financial statements to BOA and its Board, reflecting
the true financial condition of BOA on a regular basis.
45. These representations were false, and they were material or significant to the
relationship between BOA and Ridgway Lane/David Lane.
46. BOA, its Board and its membership justifiably relied on these false and material
misrepresentations by David Lane and Ridgway Lane in entering into the Agreement and
continuing to operate under the Agreement until it was terminated.
47. BOA, its Board and its membership relied to their detriment on these
representations in that the funds were converted or stolen or otherwise transferred from BOA’s
13
subject accounts and into, among others, separate accounts owned by Ridgway Lane and its
principals.
48. As a consequent and proximate result of Defendants’ fraud as alleged herein,
BOA has been damaged financially and otherwise in an amount in excess of $500,000 and has
incurred additional loss in the form of expenses, attorney fees and other losses for all of which
David Lane and Ridgway Lane are liable to BOA. BOA therefore seeks judgment against
Defendants, jointly and severally, for such fraud in an amount in excess of $500,000.
Defendants’ actions as alleged herein were intentional and were specifically designed and
intended to harm BOA and its membership. BOA therefore seeks judgment against Defendants,
jointly and severally, for punitive damages in connection with BOA’s fraud claim in the amount
of at least $500,000.
Count V—Fraud-in-the-Inducement
Complaint.
50. David Lane and Ridgway Lane represented to BOA, its Board and its membership
that they would protect and properly account for BOA’s funds in accounts maintained at
Community Bank and pay said funds to BOA on demand. David Lane and Ridgway Lane also
represented they would provide accurate financial statements to BOA and its Board, reflecting
the true financial condition of BOA on a regular basis.
51. David Lane and Ridgway Lane made these representations in order to induce
BOA to enter into the Agreement with Ridgway Lane.
52. These representations were false and David Lane and Ridgway Lane knew they
were false, but intended that BOA and its Board rely on them. BOA and its Board were ignorant
of the falsity of these representations.

14
53. These representations were material or significant to the relationship between
BOA and Ridgway Lane/David Lane and but for them having been made, BOA never would
have entered the Agreement with Ridgway Lane.
54. In justifiable reliance on the truth of these representations, BOA entered into the
Agreement with Ridgway Lane.
55. BOA and its Board relied to BOA’s detriment on these representations.
56. As a consequent and proximate result of Defendants’ fraud-in-the-inducement as
alleged herein, BOA has been damaged financially and otherwise in an amount in excess of
$500,000 and has incurred additional loss in the form of expenses, attorney fees and other losses
for all of which David Lane and Ridgway Lane are liable to BOA. BOA therefore seeks
judgment against Defendants, jointly and severally, for such fraud in an amount in excess of
$500,000. Defendants’ actions as alleged herein were intentional and were specifically designed
and intended to harm BOA and its membership. BOA therefore also seeks judgment against
Defendants, jointly and severally, for punitive damages in connection with BOA’s fraud claim in
an amount of at least $500,000.
Count VI—Negligence
Complaint.
58. Defendants had a duty to properly care for and maintain BOA funds held in trust
for the benefit of BOA, its Board and its membership.
59. Defendants breached this duty of care in failing to properly monitor the accounts
and detect account activity that was harmful to the interests of BOA, its Board and its members.
60. Defendants were negligent in their maintenance and oversight responsibilities
regarding BOA accounts at Community Bank.

15
61. As a direct and proximate result of Defendants’ negligence, BOA has been
damaged financially and otherwise in an amount in excess of $500,000 and has incurred
additional loss in the form of expenses, attorney fees and other losses for all of which Defendants
are liable to BOA. BOA therefore seeks judgment against Defendants for such negligence,
jointly and severally, in an amount in excess of $500,000.
Count VII—Gross Negligence
Complaint.
63. Defendants had a duty to properly care for and maintain BOA funds held in trust
for the benefit of BOA, its Board and its membership.
64. Defendants breached this duty of care in failing to properly monitor the accounts
and detect account activity that was harmful to the interests of BOA, its Board and its members.
65. Defendants were grossly negligent in their maintenance and oversight
responsibilities regarding BOA accounts at Community Bank and demonstrated such
carelessness and reckless disregard in the carrying out of such responsibilities as to constitute
gross negligence in the handling and management of BOA’s affairs.
66. As a direct and proximate result of Defendants’ gross negligence, BOA has been
damaged financially and otherwise in an amount in excess of $500,000 and has incurred
additional loss in the form of expenses, attorney fees and other losses for all of which Defendants
are liable to BOA. BOA therefore seeks judgment against Defendants, jointly and severally, for
such gross negligence in an amount in excess of $500,000 and related punitive damages in the
amount of $500,000 for such gross negligence and reckless misconduct as alleged herein.
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Count VIII—Unjust Enrichment/Imposition of Constructive Trust
Complaint.
68. As a result of their conduct as alleged herein, Defendants have been unjustly
enriched by the amount of BOA’s economic losses as alleged herein in an amount exceeding
$500,000.
69. As a remedy for such unjust enrichment, BOA seeks imposition of a constructive
trust on all proceeds of all Ridgway Lane accounts including those accounts into which BOA
account proceeds were transferred by Defendants and on all property, real and personal, held by
Defendants or any of them. BOA also seeks imposition of a constructive trust on all property,
real and personal, held by transferees from Defendants of BOA account proceeds. BOA seeks
any related equitable or legal relief to accomplish imposition of a constructive trust as sought
herein.
Count IX—Accounting
70. BOA re-alleges and incorporates by reference each of the foregoing allegations of
its Complaint.
71. The Defendants are in possession of funds that belong to BOA.
72. The Defendants have failed to respond from inquiries regarding financial
statements relating to BOA's accounts.
73. An accounting is necessary to determine Defendants' use or transfers of funds
belonging to BOA, as well as a complete transaction history relating to BOA's accounts held in
trust by Defendants and the extent of Defendants’ losses that occurred as a result of the
Defendants’ conduct.
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WHEREFORE, BOA requests that the Court enter judgment in its favor and against
Defendants, jointly and severally, on each of the foregoing claims in the amount of at least
$500,000 in compensatory damages, and at least $500,000 in punitive damages, and for attorney
fees, costs, pre-judgment interest and post judgment interest. BOA seeks any other relief to
which it may be entitled in the premises including all relief sought hereinabove.
Dated: November 11, 2019.
Respectfully submitted,
BRIDGEWATER OWNER’S ASSOCIATION,

INC.
By:s/Roy H. Liddell
Roy H. Liddell (MB # 1252)
Its Attorney
OF COUNSEL:
WELLS MARBLE & HURST, PLLC

300 Concourse Blvd., Suite 200
Ridgeland, MS 39157
P. O. Box 131
Jackson, MS 39205-0131
Telephone: 601-605-6900
Facsimile: 601-605-6901
E-mail: rliddell@wellsmarble.com
#271951
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Case: 61CI1:19-cv-00272-a Document #: 9-1 Filed: 11/11/2019 Page 1 of 12
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Case: 61CI1:19-cv-00272-a Document #: 9 Filed: 11/11/2019 Page 1 of 18

IN THE CIRCUIT COURT OF RANKIN COUNTY, MISSISSIPPI

BRIDGEWATER OWNER’S PLAINTIFF

V. CAUSE NO. 19-272

RIDGWAY, LANE & ASSOCIATES, INC.,

FIRST AMENDED COMPLAINT

Bridgewater Owner’s Association, Inc., a Mississippi non-profit corporation (“BOA”),

BOA states as follows:

constitute breach of contract, breach of fiduciary duty, conversion, fraud, fraudulent

Parties, Jurisdiction and Venue

2. BOA is a non-profit corporation organized and existing under the laws of

Mississippi with its principal place of business in Ridgeland, Mississippi.

3. Ridgway Lane is a corporation organized and existing under the laws of

process, David L. Lane, at 632 Lakeland Drive, Suite B, Flowood, Mississippi.

4. David L. Lane is an adult resident citizen of Madison County, Mississippi, who

residence address at 106 Alicetown Cove, Ridgeland, Mississippi 39157.

5. David W. Lane is an adult resident citizen of Madison County, Mississippi, who

residence address at 408 Meadowgreen Lane, Canton, Mississippi 39046.

in the place of John Doe Defendants.

8. Venue is proper because Ridgway Lane is located in Rankin County, Mississippi.

a. “[Ridgway Lane] shall…maintain in a bank, approved by the Board, and

b. “The Board may designate other parties in addition to Agent to be

signatory parties to such account.” (Ex. 1, paragraph 4.b.).

[Ridgway Lane’s] employees, agents or managers.” (Ex. 1, paragraph 4.k.).

d. “[Ridgway Lane] shall prepare and render to the Board…a monthly

requires…” (Ex. 1, paragraph 4.l.).

of this Agreement.” (Ex. 1, paragraph 4.m.).

f. [Ridgway Lane] shall maintain at its expense…a fidelity bond in the

accounts…” (Ex. 1, paragraph 6).

operation of the Property]” (Ex. 1, paragraph 7).

h. “[BOA] reserves the right for its members or representatives to conduct

and records are located.” (Ex. 1, paragraph 7).

10. Events of default under the Agreement include the following:

a. “failure by [Ridgway Lane] to pay to the Association, or to account for

any money in bank accounts established herein” (Ex. 1, paragraph 8.a.).

c. Regarding events of default, the Agreement provides: “Upon the

notice.” (Ex. 1, paragraph 8 at p. 10).

August 2019 financial reports to the Board.

13. By email of September 24, 2019, Ms. Dunbar/BOA presented David

fraudulent misconduct by Defendants in siphoning funds from BOA accounts.

Lane in trust for BOA.

21. David Lane/David W. Lane/Ridgway Lane/John Doe Nos. 1-5:

a. Failed or refused to cooperate and follow BOA’s instructions regarding

addition of certain Board members to the BOA’s accounts as signatories;

b. Failed or refused to provide account balance information on accounts

c. Failed or refused to provide information concerning the balance, location

e. Failed or refused to provide access to BOA records held and maintained

f. Failed or refused to explain the significant financial irregularities and

h. Failed to monitor BOA account activity Ridgway Lane personnel and

i. Provided false and misleading financial reports to BOA that concealed

transfer of said funds to third-parties.

funds from BOA accounts without BOA’s knowledge or consent or authority.

transfers occurred without checks being written.

obligations under the Agreement to BOA.

reasonably able to do so.

in an amount of approximately $117,000 that was maintained at Community Bank by David

said certificate of deposit.

Claims for Relief

Count I-Breach of Contract

31. Ridgway Lane was obligated under the Agreement to:

 Protect BOA accounts from unauthorized transfers of account funds;

 Maintain accurate financial reports relating to BOA accounts and BOA’s

financial condition generally;