KNOLLE & HOLCOMB
Attorney at Law

Calley D. Callahan

February 8, 2005


Certified Mail #7004 0750 0001 3611 9204

Re: Defamatory statements made by you pertaining to Terri Shea Giles


Dear Ms. Sun:

This Firm represents Terri Shea Giles (herein ?“Ms. Giles?”) in regard to certain false statements that you have made and posted on the Circle C Neighbors Discussions website (?“Website?”) at www.circlec.cc. Ms. Giles has become aware that you have posted numerous statements on the Website that contain falsehoods and unfounded rumors. These postings and the content therein are defamatory, libelous and actionable under the laws of the State of Texas.

As you know, Ms. Giles?’ profession and occupation is a professional bookkeeper. In your postings on the Website, you allege that Ms. Giles?’ has committed various crimes, including but not limited to tax fraud and misuse of funds. Moreover, you have made certain false statements that are damaging to Ms. Giles?’ in her profession and occupation, including your false statement that Ms. Giles has misused funds. For example, on January 17, 2005 you posted the following statements wherein you state that ?“you wanted to expose?…?…Terri Giles?’ wrongdoings,?” that you ?“?….wanted to help the Travis County District Attorney investigating the fraud?” and you ?“wanted to help Uncle Sam to catch tax cheaters.?” You further state that ?“Terri Giles?…?…..has been ripping all of us off for more than ten years!!!?” Additionally, on January 7, 2005 you posted on the Website a statement in regard to Ms. Giles that ?“renewing a contract with the Bookkeeper who we already now is misusing our funds is like hiring a known child molester to baby sit his/her children.?”

There is no factual basis for the claims that you have made in regard to Ms. Giles. As a result, your reckless transmission and publication of such false and defamatory statements amount to libel per se under Texas law.

In light of the foregoing, Ms. Giles demands that you immediately remove the posting threads that contain all such defamatory content and demands that you cease and desist from making any further defamatory statements in regard to her profession and occupation, as well as making any further statements falsely charging Ms. Giles with any crime, including but not limited to tax fraud and misuse of funds. Ms. Giles and this Firm will continue to monitor your postings on the Website for the content that contains similar or other defamatory statements.

Ms. Giles views this as a matter of the utmost gravity and is prepared to take all steps necessary and appropriate to protect her rights, including but not limited to filing suit against you for defamation. Given the seriousness of this matter, Ms. Giles looks forward to your prompt response and cooperation.

Very truly yours,
KNOLLE & HOLCOMB

Calley D. Callahan

My Response to Attorney Callahan




February 10, 2005

Dear Ms. Callahan,

With regard to your letter dated 2/8/2005, I feel sorry for you. As an attorney of Terri Giles, you, yourself, have been misled by your own client. Would you please get the facts straight before sending me a warning?

The only accusation against Terri Giles is her charging bookkeeping fee on the raw land ?– builders?’ lots. I have already provided the hard evidence to the President of CCHoA?’s Board. Please see the attached e-mail that I sent to the Board on 1/26/2005.

The rest of the accusations are against Steve Bartlett, CCHoA?’s former vice president, and Susan Hoover, CCHoA?’s former treasurer. Those items have nothing to do with Terri Giles.

Here is my advice to you ?– in order to become a competent lawyer, you should learn to get the facts straight before sending anyone a warning.

Sincerely,
Lisa Sun

How DoesTerri Giles Rip Us Off


Jan 26, 2005

Subj: Terri Giles/CCHoA Bookkeeping
Date: 1/26/2005 2:06:24 A.M. Central Standard Time
From: LS0909
To: qfennessy@circlecranch.info
CC: info@circlecranch.info, directors@circlecranch.info, committees@circlecranch.info, landscape@circlecranch.info, cdietz@circlecranch.info, mgoehring@circlecranch.info, aemartin@circlecranch.info, escruggs@circlecranch.info, surban@circlecranch.info


Dear Mr. Fennessy:

I am now presenting you three kinds of document as the hard evidence in accusing Terri Giles, our Bookkeeper, of charging bookkeeping service fee on the raw land ?– builders?’ lots with the full knowledge and approval of Steve Bartlett, CCHoA?’s former Vice-President.

- Annual agreements signed by Terri Giles and Steve Bartlett

- Monthly billings from January 1999 to December 2002

- Association?’s Annual Reports of the last three years indicating the number of homes and the builders?’ lots.



In the agreement, it was stated as follows:

Based on the outline above, Giles & Shea, Inc. will manage your Association for a fee of $1.45 per lot per month.


Here are two examples:

End of 2001

Number of Lots in the Association: 3063 (Builder lots & residences)

Number of Homes: 2625

Terri?’s December 2001 billing: Fee was calculated based on 2,991 lots.


End of 2002

Number of Lots in the Association: 3238 (Builder lots & residences)

Number of Homes: 2889

Terri?’s December 2002 billing: Fee was calculated based on 3,105 lots.

I also wanted to let you know that Terri Giles charged the Association for her Internet connection service which was not indicated in the agreements with the Association.

To my knowledge, Terri Giles has been the Association?’s Bookkeeper for at least ten years or longer. Terri was the Bookkeeper at the time when my house was built in the summer of 1994.

I had already mailed you a copy of the above documents to your home yesterday afternoon.


Gary Bradley?’s Utility Bills

I have learned just a couple days ago from Russ Hodes that the Association has inherited water meters and electricity meters which are originally owned by the Developer. Susan Hoover said that it saved us money by not converting the meters into Association?’s account. I now can put this piece of accusation to rest.

I will send you the next e-mail either on Friday or on Monday regarding the new contract with Terri Giles and the competitive bid.


Sincerely,
Lisa Sun
Circle C Homeowner