Attorney bills $42,950 – but no written opinion/recommendations?
In December 2021, a legal firm (Thorndal) was retained by the Board of the Incline Village General Improvement District to deal with a subject of importance to Incline Village property owners: compliance with the beach deed. Thorndal’s engagement letter [below] stated:
This project will include the following:
• Reviewing any proposed changes to Ordinance No.7 and Policy 16.1.1 to ensure compliance with the beach deed and applicable law.
• Reviewing the existing practice of providing recreational privileges, including beach access, to non-resident employees, their paid guests, qualified retired employees and some former Trustees without regard to their residency, to ensure compliance with the beach deed and applicable law.
Initially, IVGID will seek the opinion and recommendations [“work product” – emphasis added] of special counsel on these matters.
It is now 13 months later – so where are the opinion and recommendations?
1. General Manager Winquest and District Clerk Susan Herron are saying there is no “work product” – only invoices [see redacted invoices below]. The invoices were the only public records provided when a resident made a public records request for the opinion. They were redacted by Ms. Herron under the direction of IVGID’s external general counsel, Josh Nelson of BB&K.
2. Nevada law states attorney-client privilege can be claimed by the client and the attorney providing services. [see NRS 49.0105 below]. In this case, the client would appear to be the Board; Steven Balkenbush of Thorndal would be the lawyer providing services. When the resident asked Ms. Herron for the specific Nevada statute making the record confidential, neither Mr. Winquest nor Ms. Herron responded. Nevada Public Records Act NRS 239.0107 specifically states a statute must be cited for confidentiality:
(d) If the governmental entity must deny the person’s request because the public book or record, or a part thereof, is confidential, provide to the person, in writing:
(1) Notice of that fact; and
(2) A citation to the specific statute or other legal authority that makes the public book or record, or a part thereof, confidential.
3. The Board authorized $25,000 for the services described in the Thorndal engagement letter; purchase order 22-0217 was issued for that amount.
4. Legal firm Thorndal was paid $42,950. These funds were paid from the General Fund, meaning even Crystal Bay residents, who have no beach privileges paid for these “services”.
5. Prior to the engagement letter, Thorndal had been providing services regarding the beaches totaling $6,209.50 (2015 to 2021).
6. The Trustees did not meet in closed session with the legal firm Thorndal, so there was no direct communication with the “client”: the IVGID Board of Trustees. This appears to be contrary to the professional code of conduct for attorneys which require they communicate with the client.
Rule 1.4. Communication states
(a) A lawyer shall:
(1) ….
(2) Reasonably consult with the client about the means by which the client’s objectives are to be accomplished;
(3) Keep the client reasonably informed about the status of the matter;
How did the engagement change so no written opinion or recommendations would be provided, when there was no communication with the client: the Board?
In 2002, Harvard Business School published an article “Can you trust your legal firm”.
“It’s all the more important that you get legal advice in writing, record any oral communications from your lawyers in contemporaneous private memos, demand in writing that your lawyers inform you of suspected illegality, take action to investigate and stop that illegality, and keep your board informed. If you don’t take those basic precautions, you’re asking for trouble.”
7. Below is a letter from Gayle Holderer. She is a lawyer, licensed in Nevada. It is clear from this letter what her opinion is. https://ourivcbvoice.com/wp-content/uploads/2022/12/0629_-_Part_2_p_147_Holderer.png
8. There is a letter from attorney Stephanie Rice demanding that IVGID cease its violations of the Beach Deed by giving employees access – see https://ourivcbvoice.com/wp-content/uploads/2022/04/20211001_letter_Rice.png
9. An agenda item has been placed on the January 11, 2023 IVGID Board meeting. The meeting can be watched either live or later via video recording: https://livestream.com/ivgid/events/
In conclusion, it appears public records have been concealed – at the direction of IVGID’s current general counsel, Josh Nelson. Will the IVGID Board meeting result in their discovery?
The author, J. Gumz, is a long-time resident and property owner of Incline Village and a registered voter. Cliff Dobler, also a long-time resident and property owner of Incline Village, and a registered voter, contributed to this article.
Related articles:.
Why are our Beaches so crowded https://ourivcbvoice.com/why-are-our-beaches-so-crowded/
REDACTED INVOICES
Invoice 0004 CLICK for a larger image
Invoice 160534 CLICK for a larger image
Invoice 161497 CLICK for a larger image
Invoice 161625 CLICK for a larger image
Invoice 163299 CLICK for a larger image
Invoice 163942 CLICK for a larger image
NRS 49.105 Who may claim privilege.
1. The privilege may be claimed by the client, the client’s guardian or conservator, the personal representative of a deceased client, or the successor, trustee or similar representative of a corporation, association or other organization, whether or not in existence.
2. The person who was the lawyer at the time of the communication may claim the privilege but only on behalf of the client.
Thank you both for your efforts to get to the bottom of this issue. As noted, as a resident and homeowner we have in part paid for the noted legal service, but regardless of the findings will not benefit as our home is in Crystal Bay and therefore not entitled to beach privileges. Our question is very simple, that being: “Why weren’t these legal services paid for out of the Beach Fund, not the General Fund?”
This question should most certainly be answered by GM Winquest and the Trustees. Prior to the contract of Dec 2021, one payment to Thorndal in August, 2018 was, in fact, paid for by the Beach Fund.
“Review of Beach Litigation with IVGID staff in preparation for Beaches 101 presentation”, $1,597.50
Clearly, there is more to be done. So we residents must keep digging.
As a long term home and business owner, who lives here full time, I’m shocked at the amount of people using our beaches. I can no longer park and enjoy our beaches during the summer as all parking is being used, there is no longer comfortable spaces to sit, our new pool is packed.
I would appreciate an answer to ‘why’ there are SO many more people using our ‘private’ beaches, as well as a solution.
There are two articles we have written on why our beaches are so crowded. Definitely read these.
https://ourivcbvoice.com/why-are-our-beaches-so-crowded/
https://ourivcbvoice.com/why-are-our-beaches-so-crowded-part-2/
An analysis of punch card data for 2021 showed that a small percentage (about 3% of parcels) purchase more than the “Rule of 5”. We have not yet posted an article on our analysis, but may do so in the future, especially if there is interest expressed. Thank you for expressing yours.