Santa Clara, CA — In a groundbreaking ruling, a Santa Clara couple has been awarded $1.8 million in damages following a years-long battle against their homeowners association (HOA) over a concealed artesian well that wreaked havoc on their condominium. The case, which Judge JoAnne McCracken ruled on last month, is now the largest known HOA fraud and elder abuse award in California history.
The Uncovering of a Hidden Crisis
Doug Ridley, 85, and his wife Sherry Shen had long planned to use their rental income from their Santa Clara condo to fund their retirement travels. However, their dreams were derailed in 2018 when tenants discovered water pooling in the crawlspace beneath their home. What initially seemed like a minor issue soon unraveled into a massive legal battle exposing “extensive deception” by the Rancho Palma Grande HOA.
Investigations led to a shocking revelation: a forgotten, 400-foot-deep artesian well from Silicon Valley’s agricultural past lay hidden beneath their living room. The well, left uncapped for decades, was leaking thousands of gallons of water daily, causing mold infestation and structural damage. The problem escalated further in 2019 when a sinkhole emerged beneath the property.
HOA Negligence and Deception Exposed
Despite early warnings from the Santa Clara Valley Water District and the city, the HOA failed to take meaningful action. Instead, according to court documents, the association engaged in a pattern of “gross negligence, deception, and breach of duty.” Attorneys for the HOA were aware of the well but withheld critical information, even providing misleading statements to government agencies.
Steve Moritz, the former HOA president, falsely assured Ridley and Shen that their unit was habitable despite visible mold. Court records revealed that the HOA rejected a $7,104 proposal for water damage mitigation, claiming the cost was too high. Meanwhile, Ridley had to install a sump pump that extracted up to 17,000 gallons of water daily.
The HOA’s lawyer, Steve Barber, even wrote to local officials denying any evidence of an abandoned well—a claim described in court as “replete with falsehoods.”
A Hard-Fought Victory
By early 2020, the HOA finally authorized a long-overdue investigation, which confirmed the presence of the well. It was destroyed the following month. However, the damage was done—Ridley and Shen’s condo remains uninhabitable. With exposed subflooring, mold-infested walls, and unfinished repairs, their once-livable home stands as a symbol of their prolonged struggle.
Judge McCracken’s ruling highlighted that if the HOA had acted promptly, the well could have been located and sealed within months, sparing the couple years of financial and emotional distress. Instead, Ridley and Shen were forced to deplete their retirement savings, selling stocks and assets to fund investigations the HOA refused to conduct.
“This case is a David vs. Goliath fight,” said the couple’s attorney, Terry O’Hara. “We weren’t just battling an HOA—we were up against powerful lawyers and insurance companies determined to evade responsibility.”
What’s Next?
While the ruling is a major win for Ridley and Shen, their battle isn’t over yet. The HOA has 60 days to file an appeal, potentially delaying their access to the awarded funds. However, during this period, the $1.8 million will accrue interest.
The case underscores a growing issue with HOA accountability and transparency. “HOAs should protect homeowners, not deceive them,” Ridley stated. “This ordeal has cost us years of our lives and a significant fraction of our savings.”
For now, their condo remains a construction site, and their legal fight continues. But their landmark victory sends a clear message: HOAs cannot ignore their responsibilities without consequences.
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