Garden Oaks

GARDEN OAKS MAINTENANCE ORGANIZATION LIKELY TO FILE FOR BANKRUPTCY ON ACCOUNT OF ALL THAT MONEY IT HAS IN THE BANK The Garden Oaks Maintenance Organization has hired a law firm to handle an anticipated bankruptcy filing — which could come as soon as Monday, reports The Leader’s Jonathan McElvy. Two years ago, a lawsuit that the organization had filed to enforce its deed restrictions against a pair of homeowners backfired when the court ruled that GOMO itself had not been formed legally. (An appeals court has since ruled that it does still have power to enforce the neighborhood’s bylaws.) As a result, in the wake of the initial ruling, “every dollar GOMO spends now could be challenged in court,” writes McElvy. With close to $600,000 in its bank account, GOMO now appears to face 2 options, he notes: “Either the board disbands and lets a judge tell them how to disburse that money, or they try a legal maneuver that seeks a judge’s permission to reorganize, so they can continue operations as the gatekeeper of Garden Oaks.” If this story sounds vaguely familiar, it’s because it is. GOMO’s predecessor entity was disbanded before the current organization began in 2001 because it was, McElvy says, “formed illegally, as well.” [The Leader; previously on Swamplot] Photo: Swamplot inbox