​Why a Receiver Might Request a Management Contract 

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A receiver is responsible for protecting the interests of property owners and ensuring that the HOA operates fairly and efficiently. Since 2023, the court-appointed Receiver for Deerfield Resort has requested a management contract from the developer, likely for the following reasons:

 

• Define Duties and Costs:  Establishing clear expectations for the developer’s role and associated costs

• Ensure Legal Compliance:  Ensuring the HOA operates in accordance with local regulations.

• Prevent Conflicts:  Safeguarding the HOA against potential mismanagement or biases that could arise from the developer's involvement.

 

What Should the Contract Include?

A management contract formalizes how the HOA is managed to ensure openness and accountability. It should define the manager’s responsibilities, including organizing meetings, handling finances, maintaining common areas, and enforcing HOA rules. The agreement should also specify costs, payment structures, and potential conflicts of interest.

 

Key Elements of the Contract:

• Regular Financial and Maintenance Updates: Ensuring property owners are kept informed about the financial and operational status of the HOA.

• Protections Against Liabilities: Safeguarding the HOA and owners from legal and financial risks.

• Compliance with Legal Requirements: Ensuring adherence to all relevant laws and regulations.

• Clear Procedures for Resolving Disputes: Establishing methods for addressing disagreements in a fair and structured manner.

• Terms for Terminating the Contract and Transitioning Responsibilities: Clearly defined terms for ending the contract and ensuring a smooth transition if needed.

 

Why This Matters to You

For nearly four decades, the developer has managed the HOA without direct oversight from property owners. A receiver-requested contract changes this dynamic by establishing accountability and providing owners with a clear framework for understanding how their dues are spent. In this new model, property owners will have rights, and the developer will be required to prioritize the interests of all residents, ensuring fair and transparent management of the community.

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 Unclear Terms and Risks in Proposed Management Agreement

 

The 2025 management agreement between Scott Fields, Deerfield Management, LLC, and the Deerfield Resort HOA is under review by a court-appointed receiver. Valued at $520,000, the contract aims to oversee community operations, but lacks crucial details, raising concerns about transparency, accountability, and risk exposure.

 

Key Areas of Concern

• Vague Responsibilities & Lack of Performance Standards: The contract outlines broad duties without clear expectations, accountability measures, or quality controls. This ambiguity increases the risk of disputes and inconsistent service delivery.

• Limited Termination Rights & Legal Protections: The agreement does not specify termination clauses, notice periods, or dispute resolution processes, limiting the HOA’s ability to address management failures effectively.

• Financial Transparency & Oversight Gaps: The budget structure combines past expenditures with projections without a detailed breakdown of expenses. There are no provisions for audits, regular financial reporting, or board-approved expenditures, raising concerns about fiduciary responsibility.

• Conflicts of Interest & Use of Private Property: The agreement allows Scott Fields to use his personal real estate office and storage areas for HOA operations without clear rental terms, liability protections, or adequate oversight. This could create financial and legal risks.

 

• Scott Fields’ Dual Role & Governance Risks: Fields, who is both a developer declarant and president of Fields Development Company, is a defendant in a lawsuit regarding HOA fund mismanagement. His efforts to control HOA finances and operations, coupled with his candidacy for the HOA board, present ethical and governance risks.

• Insurance & Liability Gaps: The contract fails to mandate essential insurance coverage (e.g., general liability, workers' compensation, professional liability), leaving the HOA vulnerable to financial exposure from potential claims or lawsuits.

• Lack of HOA Board Oversight Mechanisms: There are no requirements for board reporting, budget approvals, or operational oversight, reducing homeowner protections against potential financial mismanagement.

 

Receiver’s Follow-up

On January 27, 2025, the management agreement was submitted for review, but concerns regarding cost transparency and oversight quickly arose. On February 3, Scott Reams emailed Preston Hawkins, noting that the agreement had remained largely unchanged, except for an added $75,000 payment to Scott Fields for existing duties. Reams requested detailed financial documentation, including 2024 W-2s and 1099s, job descriptions, work logs, and employee compensation details. Despite multiple follow-ups and raising the issue during a February 13 court hearing, he has yet to receive a response.

 

What’s Next

The receiver has the authority to approve, reject, or request revisions to the agreement, or even consider alternative management providers. A more detailed contract with clearer terms would better secure Deerfield’s stability as it approaches its upcoming board election. For now, these deficiencies warrant thorough scrutiny.

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Analysis of the $520,000 Management Proposal: Budget, Staff, and Leadership

 

The court-appointed Receiver asked Fields Development Company to provide a management contract for Deerfield Resort HOA. With a management proposal from Scott Fields’ new company and an election underway, here’s what’s being considered for our dues and community.

 

Staff Sharing Across Multiple Companies

Depositions show that resort staff worked for Fields Development Company, Fields Real Estate, and Deerfield Water Company, with costs covered by HOA dues. Paula LeJeune Fields and Scott Fields stated that time for shared staff was tracked and that the HOA was reimbursed for time when staff members were not working for the HOA. However, no staff tracking documents or reimbursements were found in HOA records. Now, Scott Fields’ new company, Deerfield Management, LLC, formed on January 28, 2025, is proposing to manage the HOA, potentially using some of the same staff, funded by HOA dues.  Paula LeJeune Deposition 

 

Overview of the Budget Proposal

The proposal’s financial details raise questions for us:

 

• Budget from Dues: The $520,000 matches your total dues split over 12 months ($43,333 each), not a cost-based plan. This could mean spending reflects what’s collected, not what’s actually needed.

• Flat Costs, Seasonal Needs: As a vacation community, Deerfield experiences higher expenses (pools, landscaping, security) in the summer and lower expenses in the winter. However, the budget remains consistent throughout the year, which could lead to mismatches in cash flow or seasonal service levels.

• Management Salary: Scott Fields’ $75,000 salary is part of the $520,000 total. This raises questions about the balance between management costs and community needs.

• No Cost Details: The proposal lacks specifics about seasonal adjustments or savings, making it unclear where dues are allocated.

• Staff Expenses: Payroll makes up nearly half of the budget ($201,869), potentially limiting funds for other priorities.

• Tax Debt: There is an unpaid payroll tax liability of $44,183 from previous operations under Fields Development Company. This debt raises concerns about the company’s ability to meet future financial obligations. Property owners may worry that the same management team could pass on additional costs or risks to the HOA.​

• Considerations  for Property Owners: Fields Development Company owns all common areas at Deerfield Resort (roads, gatehouses, etc.), not the HOA. Tennessee law states HOA dues should cover community needs, not private company assets. Property owners may question if dues are being used properly.

 

Scott Fields’ Multiple Roles in the HOA and Development

Scott Fields holds leadership roles in Fields Development Company, Deerfield Water Company, Fields Real Estate, and Deerfield Management, LLC, the proposed management company. He is also running for the HOA board. If elected, he would hold multiple roles – board member, developer head, and manager – creating potential conflicts of interest.

 

Next Steps and How You Can Participate

The Receiver will ultimately decide whether the $520,000 management proposal moves forward. Simultaneously, your votes in the ongoing election will determine who will lead the HOA moving forward. 

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