Case Study Seawest

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Seawest Services Association is a non-profit organization, which was incorporated in 1983 by a local real state developer John E. Grady III (Grady Sr.). Seawest "is organized solely to manage the affairs of the homeowners association of the development1 known as SEAWEST in Island County, Washington." Like in many situations, only the property owners living within the development were part of the homeowners’ association. In addition to manage the homeowners association, Seawest’s purpose was to "acquire, construct, maintain, and operate a domestic water system and distribute water therefrom to the development and other real property which the Association may elect to serve."

Seawest’s articles of incorporation establish two classes of members – full and limited. The former are homeowners living inside the development and the latter are the ones outside the associations’ boundaries. These limited members received water utility services from Seawest. In this case, the Copenhaver’s property was located outside the development; hence, they were considered limited members. Furthermore, under the Seawest’s articles of incorporation, each property serviced by the water system, including properties owned by full and limited members, is liable for assessments associated with the Seawest water system. The articles were originally filed with the secretary of state in 1983, but not recorded. They were re-filed in 1987 and 1991 with no material changes.
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The Gaudins kept the property that was later purchased by the Copenhavers. Additionally, they conveyed easements to Grady Sr. to build a well and install a water distribution system. Grady Sr. later, in 1984, assigned these easements to