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The Courtyard Homeowners Association, Inc. (CHAI) was the governing corporation for a 315- home development in Austin, Texas. In early 2001 Earline Wakefield took over as president and resolved to “restore the spirit” of the neighborhood after a lengthy dispute.

Two of her directors, both lawyers, had a history of success in expanding neighborhood rights to so-called “Common Area,” especially that along picturesque Lake Austin. Among other past successes, the two lawyers had convinced a developer years earlier to donate land and money for an elaborate 20-acre park. But when they collaborated in 1998 to construct a walkway along the...

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