Tonight’s Board meeting was supposed to focus on the issues that matter to homeowners: landscaping, security, lake safety, finances, upcoming community events, architectural applications, the golf course, and filling the vacant Board seat. Instead, a large portion of the evening was consumed by repeated disruption from Steven Lalliss related to his petition for a special membership meeting to vote on indemnifying both Director Lorenzo Harris and Steven himself in the recent lawsuit Steven filed. Before we get to the substantive community issues, here’s a brief description of the disruption caused by Steven.

The Petition, the Demand Letter, the Lawsuit, and the Chaos at the Meeting

Public court records show that on December 5, 2025, Steven sent Lorenzo a demand letter seeking $15,000 and stating that if payment was not made by December 20, 2025, he would file a lawsuit. In our opinion it principally involved Lorenzo’s attempt , in his official capacity as a Director, to remove Mr Lalliss as a Director for nonpayment of dues, however, it was sent to Lorenzo personally. When payment was not made, Steven followed through and filed suit on April 20, 2026.

Lorenzo has since filed a Special Motion to Strike the complaint under California’s Anti-SLAPP statute, arguing that the claims are meritless and that the statements at issue were protected speech made in a public forum on matters of public interest. A hearing on that motion is scheduled for August 27, 2026. Lorenzo has also filed a Cross-Complaint against Steven Lalliss. Details regarding the lawsuit are a matter of public record and can be found on the Placer County Superior Court website.

Steven also circulated a petition seeking a special membership meeting asking the HOA for indemnification for himself and Lorenzo regarding the lawsuit he filed. The Board invited a Senior Attorney with the Association’s new legal counsel, Tinnelly Law Group, to join via Zoom to explain the Bylaws and answer questions about the petition and indemnification process. She explained that once the vacant Board seat was filled, three disinterested directors could address indemnification internally under the Bylaws, making a special membership vote unnecessary.

Rather than allowing homeowners to hear that explanation, Steven repeatedly interrupted the attorney, argued with Board members, talked over other residents, and ignored repeated calls to order. He continually redirected the discussion back to his lawsuit and the indemnification issue, turning what should have been a straightforward explanation into prolonged chaos. Even after being told he was out of order multiple times, he continued the disruptions.

The Board then appointed Wes Owsley to fill the vacant director position. Steven immediately accused the Board of “stacking” the Board to influence the outcome. Several homeowners in the audience pointed out that Steven had previously been appointed to fill a vacant Board seat in a similar manner. The remaining directors rejected the claim and proceeded with the appointment as authorized by the Bylaws.

A Homeowner Speaks Directly

Significantly, one homeowner spoke directly to Steven about the ongoing obstruction and his personal agenda. He noted that 260 residents had voted to remove Steven from the Board during the recall effort. Although the recall did not succeed due to the questionable last minute change in the cumulative voting interpretation, he emphasized that hundreds of homeowners had already sent a clear message.

He stated that this should have been understood as a signal to stop obstructing the smooth operation of the Board and allow the Association to move forward. He expressed frustration that personal agendas and conflict continue to derail meetings, preventing the Board from focusing on the business that matters most to homeowners. His comments carried extra weight because they came from a fellow resident speaking from his own experience and disappointment.

Real Progress Was Still Made

Despite the repeated interruptions and the meeting being derailed for a significant amount of time, the Board still advanced important community business:

• New fishing rules were approved to proceed through the required 28-day homeowner review. The rules require a resident to be physically present when guests fish and limit fishing to dawn to dusk. This follows multiple reports of trespassing, vandalism, fireworks, and unsafe activity at the lake.

• Safety improvements are advancing, including upgraded gate cameras and license plate recognition technology.

• Removal of dead and hazardous trees, along with replacement landscaping, is scheduled.

• The Board approved the Social Committee’s Music in the Park event for October.

• The Golf Course Committee reported that an Environmental Impact Report is required from the owner to proceed. It is unknown if or when that will occur.

These are the kinds of issues most homeowners expect the Board to spend its time addressing.

Where Things Stand

With the vacant Board seat now filled and new legal counsel in place, the Board is positioned to consider the indemnification matter internally as outlined by the attorney.

The Association carries Director and Officer (D&O) insurance, which is intended to cover legal fees and defense costs for claims arising out of actions taken in a director’s official capacity. In our opinion, because the lawsuit lawsuit stemmed from statements made during an HOA meeting, it appear to be more closely related to Association business than purely personal matters. Homeowners have expressed concern that they do not want personal legal disputes to result in increased dues or special assessments. The Board will consider the indemnification request and insurance coverage in executive session and we assume will communicate its decision to the community once a determination has been made.

We hope going forward the focus should be on the day-to-day business of maintaining and improving our community.

Morgan Creek deserves productive meetings that prioritize the needs of all homeowners. We all want respectful conduct, transparent governance, and a neighborhood we’re proud to call home.

As always, comments are welcome.