Ed Lawson - The Treasure
Edward D. Lawson serves as Treasurer and a member of the Board of Directors of the Smoky Mountain Country Club Property Owners Association during the Association's bankruptcy litigation, the dispute over mandatory clubhouse dues, assessment proceedings, and foreclosure litigation.
As a member of the Board, Lawson participated in the March 31, 2021 Association hearing that concluded the Hedgepeths had engaged in negligence and misconduct, resulting in the assessment of $69,623 in attorneys' fees against their property and the subsequent filing of a claim of lien and foreclosure proceedings. Lawson later acknowledged in his deposition that, after learning from the federal bankruptcy proceedings that the validity of the individual homeowners' obligation to pay clubhouse dues remained an unresolved legal question, he took no action to seek further clarification. The Association nevertheless continued its collection efforts, and Lawson subsequently participated in filing foreclosure proceedings against Robinson and Elizabeth Myers to collect the disputed clubhouse dues.
Documents of Interest:
In a sworn affidavit, Lawson stated that he was the Treasurer of the Association, was familiar with its books and records, and had personal knowledge of the matters contained in his affidavit. Lawson Aff. ¶¶ 1, 3.
Accepted Office Without Learning His Duties
During his deposition, Lawson admitted that before becoming a director and Treasurer, he did no research regarding the responsibilities of serving on the Board.
When asked whether he researched or spoke with anyone about his responsibilities as a board member, Lawson answered:
"No, I did not." Deposition: 61:1–3.
Never Received Training on Fiduciary Duties
Lawson testified that no one ever explained his fiduciary duties as a director.
When asked:
"Has anyone ever talked to you about your fiduciary duties as a board member?"
Lawson answered:
"No."
He further admitted that he had never received any documents or emails discussing fiduciary duties and had only reviewed the Declaration. Deposition: 61:7–14.
Acknowledged His Duty Was Owed to the Homeowners
Lawson testified that his obligations as Treasurer were owed to the members of the Association.
When asked who he was obligated to, Lawson answered:
"The Association."
When asked who the Association was, Lawson answered:
"The members of the community." Deposition: 62:2–5.
Selected by Michael Cornblum to Serve on the Board
Lawson testified that he did not organize the new Board following the bankruptcy. Instead, Michael Cornblum personally asked him to become a Board member.
When asked who asked him to serve, Lawson testified:
"Michael Cornblum asked me." Deposition: 51:1–10.
Lawson also testified that he and Cornblum "worked together a lot."
Deposition: 51:18–52:6.
Longstanding Personal Relationship with Michael Cornblum
Lawson testified that he knew Michael Cornblum before purchasing property at Smoky Mountain Country Club.
He performed computer work for Cornblum, received complimentary golf in return, and described Cornblum as:
"A very good friend." Deposition: 25:1–29:11.
Purchased His Condominium Directly from Michael Cornblum
Lawson testified that he purchased his condominium directly from Michael Cornblum.
He further acknowledged that he discussed the purchase more with Cornblum than with his own closing attorney.Deposition: 33:1–14; 34:14–35:7.
Relied Upon Cornblum for Information About Clubhouse Dues
Lawson testified that Michael Cornblum informed him that clubhouse dues were required, told him the monthly amounts, and explained that the dues increased annually. Deposition: 34:11–13; 35:1–11.
Did Not Independently Research the Legal Issues
After joining the Board, Lawson admitted that he did not independently research whether homeowners were legally obligated to pay the disputed clubhouse dues.
When asked whether he should have researched the issue, Lawson testified that a judge had ruled and that he was "not going to research" the matter. Deposition: 72:13–73:2.
Did Not Know Significant Facts About the Appeal
Lawson testified that he did not know who filed the bankruptcy appeal until he arrived in court, did not remember reviewing the appeal documents, did not remember why the appeal had been dismissed, and recalled nothing significant from the dismissal order. Deposition: 73:11–74:12.
Took No Action After Learning Homeowner Liability Was Unresolved
After reviewing the federal court order, Lawson acknowledged that whether homeowners were legally obligated to pay clubhouse dues remained an open legal question.
When asked what he did for the benefit of Association members after learning that issue remained unresolved, Lawson answered:
"I didn't take any action." Deposition: 78:23–79:4.
When further asked whether he believed he had an obligation to do anything, Lawson answered:
"No." Deposition: 79:16–24.
Participated in the Board Hearing Against Homeowners
Lawson participated as a member of the Board that conducted the March 31, 2021 hearing to determine whether certain homeowners had committed negligence or misconduct and whether $69,623 in legal fees should be assessed against them. Board Decision: ¶¶ 2, 6–8.
The written decision states that only Marshall Cornblum and John Miller testified before the Board, after which the Board determined witness credibility and imposed liability. Board Decision: ¶¶ 6–7.
Authenticated the Assessment and Claim of Lien
As Treasurer, Lawson signed an affidavit authenticating the hearing notice, Board decision, and the March 21, 2022 claim of lien filed against the homeowners. Lawson Affidavit: ¶¶ 4–6.
Refused to Explain Why the Association Filed the Lien
During his deposition, Lawson acknowledged that the debt referenced in the bankruptcy order was owed to SMCC Clubhouse. When asked why the Association filed a lien for that debt, Lawson declined to answer.
His response was:
"I don't want to answer that question." Deposition: 111:1–15.
**The testimony and documents summarized above are part of the public court record. Unless otherwise indicated, they reflect sworn testimony or filed evidence and are not presented as findings of fact by any court. Readers are encouraged to review the cited materials in their entirety and draw their own conclusions based on the complete record. Although the Swain County Superior Court, the North Carolina Court of Appeals, and the Supreme Court of North Carolina have issued decisions favorable to the Association in the litigation discussed on this website, those decisions have also prompted broader questions concerning the scope of HOA authority, fiduciary accountability, due process, and the powers exercised by homeowners' associations. Those issues continue to be discussed by homeowners, attorneys, courts, and policymakers.
