The Todd Creek Farms subdivision near Brighton, Colorado, is a homeowners’ association governing approximately 370 lots. It became the subject of a derivative lawsuit alleging significant governance failures. Homeowners claimed the HOA board engaged in financial mismanagement and self-dealing, particularly concerning a landscaping contract with Method Landscaping Services. The contract was initially quoted at approximately $27,000, but records indicated payments totaling nearly $229,000 were made over 2020 and 2021 for work plaintiffs contended should have cost substantially less.
The lawsuit and landscaping allegations
Plaintiffs’ counsel alleged the HOA board president, Jason Pardikes, benefited to the tune of over $100,000—potentially exceeding $150,000—from HOA payments to the landscaping contractor, suggesting undisclosed ties that constituted self-dealing. An Adams County Sheriff’s investigation has been cited in connection with these allegations. The underlying case is Apke et al. v. Todd Creek Farms, filed in Adams County District Court. Homeowners also alleged board members engaged in entrenchment tactics by resigning and being re-appointed in late 2022 in a manner that extended terms beyond election cycles, bypassing proper accountability. The board was further accused of failing to respond to legitimate document and records requests concerning contracts and finances, raising transparency concerns under Colorado’s Common Interest Ownership Act.
Legal costs and Chapter 11
The HOA cited mounting legal defense costs exceeding $800,000 as the primary factor necessitating Chapter 11 protection. The association had expended approximately $900,000 defending against the lawsuit—filed by a group of roughly 31 homeowners representing about 5–10% of the community—before seeking bankruptcy relief. These legal costs were characterized as an unpredictable and uninsurable legal risk that threatened the association’s solvency given its operational budget scale. The HOA filed for Chapter 11 on July 15, 2025 (Case No. 25-bk-14385), not 2024. The bankruptcy filing is a rare example of an HOA seeking reorganization in the face of litigation.
Why HOA bankruptcies are rare
Chapter 11 filings by homeowners associations are exceedingly uncommon. Most HOAs are nonprofit entities with modest operating budgets funded by member assessments; they rarely carry debt that would justify reorganization. In Colorado, the HOA Information and Resource Center does not track HOA bankruptcies, and the state does not require associations to report them. The Todd Creek Farms filing therefore stands out as an unusual outcome driven primarily by litigation expense rather than operational insolvency. Board president Jason Pardikes stated the move was intended to “stop the bleeding” from legal fees that had averaged tens of thousands of dollars per month. Plaintiffs’ attorney Peter Towsky, whose firm Robinson & Henry represents the homeowner group, has questioned whether the HOA had genuine solvency issues or filed chiefly to pause the state-court case and avoid a scheduled jury trial.
Timeline and current status
The landscaping contract at issue was executed around 2020–2021; homeowners filed their verified complaint in Adams County District Court in April 2023. The HOA and board members filed motions to dismiss; financial audits and discovery proceeded. The plaintiffs sought documents and records under Colorado’s Common Interest Ownership Act to trace payments to Method Landscaping and to assess whether the board had followed competitive-bidding and conflict-of-interest policies. The board’s resistance to those requests became part of the derivative suit. Defenders of the board pointed to independent audits from 2020 onward that reported no financial irregularities; plaintiffs and their counsel maintained that the audits did not negate the need for full disclosure and that the sheriff’s investigation supported their allegations. Resolution now depends on the bankruptcy court’s view of the HOA’s finances and the good faith of its Chapter 11 filing. The Chapter 11 petition aimed to halt ongoing litigation costs and allow reorganization while maintaining essential services. As of mid-2025, the lawsuit remained active with dozens of homeowners represented, contingent upon bankruptcy court resolution of the reorganization plan and good-faith review of the filing. The state-court case is on hold until the bankruptcy court determines whether the filing is legitimate and how the association will reorganize.
What this case illustrates
The case illustrates how governance deficiencies—including inadequate competitive bidding, insufficient conflict-of-interest disclosures, and lack of response to records requests—can escalate into existential financial threats. Industry and legal observers note the importance of early intervention through mediation, internal audits, or recall proceedings to avert extraordinary legal costs and potential bankruptcy. The rare Chapter 11 filing by an HOA underscores the need for proactive governance, transparent operations, and engaged homeowner oversight to prevent isolated disputes from cascading into community-wide financial crises. For communities and boards, the Todd Creek Farms matter serves as a cautionary tale about the cost of prolonged litigation when governance and transparency break down. Colorado’s Common Interest Ownership Act and HOA best practices emphasize competitive bidding, disclosure of conflicts of interest, and timely responses to owner records requests; where those are neglected, disputes can quickly outstrip an association’s ability to pay and lead to outcomes that no one in the community sought.