By Bob Paterson A dispute over who controlled a Colorado homeowners association became a much larger fight about landscaping payments, access to financial records and the cost of defending its board. In April 2023, residents of Todd Creek Farms, a roughly 370-lot community near Brighton, sued their HOA and five directors, alleging violations of the association’s governing rules and duties to homeowners. A judge allowed most of the claims to proceed, but the conflict took an unexpected turn when the association sought Chapter 11 bankruptcy protection in 2025. The dispute remains unresolved, with new bankruptcy-court activity recorded in October 2026.
How the Todd Creek Farms Lawsuit Began
On April 14, 2023, Edie Apke and other residents filed a derivative complaint in Adams County District Court, Colorado, Case No. 2023CV30537. The defendants included Todd Creek Farms Homeowners Association and directors Jason Pardikes, Wendi Setchfield, Maryjo Montoya, Ben Cooper and Sean Holdren.
The residents sued on behalf of the association rather than seeking only individual compensation. They argued that decisions made by the board had damaged the HOA and undermined members’ rights under its bylaws and Colorado law.
What Did the Homeowners Allege?
The complaint focused on three connected disputes:
- Board elections: Plaintiffs alleged that Pardikes and Setchfield resigned on November 15, 2022, then were immediately appointed to each other’s unexpired terms. They said the arrangement extended Pardikes’s board service by two years without an ordinary membership election.
- Landscaping payments: The lawsuit questioned the HOA’s contract with Method Landscaping Services. The original complaint alleged that the disclosed contract called for $26,677.05 in 2020, while association records showed approximately $214,719.55 paid to the company that year. Plaintiffs also questioned whether Pardikes had an undisclosed connection to the contractor.
- Access to records: Homeowners alleged that requests for financial and governance documents were not properly answered, contrary to the association’s rules and Colorado’s Common Interest Ownership Act.
These were allegations in the pleadings, not findings that association funds were stolen or that a director improperly profited.
What Did the HOA Say, and What Did the Judge Decide?
The HOA rejected the accusations. In public statements, its board maintained that it acted lawfully and in the community’s interests. In August 2025 reporting by CBS Colorado, Pardikes pointed to independent financial audits, while the landscaping company’s principal denied that Pardikes had a financial interest in its HOA business.
On February 6, 2024, District Judge Sarah E. Stout denied the association’s motion to dismiss the amended complaint. The court found sufficient allegations to let the case move forward. It did dismiss one portion of the eighth claim under the Colorado Common Interest Ownership Act to prevent duplicative recovery. Allowing a claim to proceed was not a ruling that the alleged misconduct occurred.
Why Did the Association File for Bankruptcy?
On July 15, 2025, Todd Creek Farms Homeowners Association filed a Chapter 11 case in the U.S. Bankruptcy Court for the District of Colorado, No. 25-14385-KHT. The filing imposed bankruptcy protections that interrupted the pending litigation against the association.
The HOA said mounting legal costs drove the decision. In statements reported by CBS Colorado, the board estimated that defending the dispute had cost more than $800,000 and said bankruptcy was intended to preserve community resources, not address unpaid vendors or ordinary operating insolvency. The homeowners challenged the filing’s purpose, arguing that it obstructed their effort to examine the association’s finances.
The community’s finances are unusual because the HOA also receives oil-and-gas revenue. The board previously announced payments to homeowners from that revenue, making litigation spending a practical concern for residents. The existence of those payments does not establish that the royalties were misused.
Todd Creek Farms Lawsuit Status in October 2026
The federal bankruptcy docket identifies Andrew D. Johnson as trustee following a June 2026 change. Monthly operating reports continued into September. On October 5, 2026, the bankruptcy court granted a request for a Rule 2004 examination involving JPMorgan Chase Bank records; the docket records notice of that order on October 7.
Those filings show the bankruptcy process was still active. The bank-record examination is a tool for gathering information, not proof of financial wrongdoing. No final judgment establishing the homeowners’ central allegations or resolving the underlying dispute was verified in the records reviewed through October 14, 2026.
Frequently Asked Questions
Q. Can the HOA file for bankruptcy without affecting homeowners’ property ownership?
Yes. The association’s Chapter 11 case concerns its own finances and legal obligations. It does not, by itself, transfer residents’ home titles or make individual owners bankruptcy debtors.
Q. Does the HOA’s bankruptcy mean homeowners can stop paying dues?
No. A Chapter 11 filing does not automatically cancel assessments required by an HOA’s governing documents. Residents should distinguish the association’s bankruptcy obligations from their own assessment responsibilities.
Q. Could residents personally receive money if the derivative lawsuit succeeds?
Not necessarily. A derivative lawsuit seeks relief for the association itself. Any recovery and its distribution would depend on the court’s orders and the bankruptcy proceedings, rather than creating an automatic individual payout.
Q. Will homeowners continue receiving oil-and-gas revenue distributions?
Past distributions do not guarantee future payments. Any new distribution would depend on available funds, the association’s obligations and decisions made during bankruptcy administration. A confirmed payout schedule was not established in the records reviewed.