A lawsuit filed on December 2nd by Tri Counties Bank (TCB) alleges the Fire Safe Council of Nevada County (FSC) to be in breach of contract for multiple leases and a line of credit, for a total of $806,301.30. The bank entered a notice of default against the Fire Safe Council on January 17, 2025.
Promissory notes issued were for various trucks and equipment (chipper) and, according to court documents, the FSC failed to make monthly payments starting in July and August. The lawsuit also alleges non-payment of installments on a line of credit and a credit card. The Fire Safe Council acknowledges they “do not currently have the financial resources to meet our obligations.”
Eighteen causes of action are listed in the complaint, including:
Several trucks, repossessed by the bank, with outstanding/missed payments.
The complaint also alleges the 2021 Bandit Model 12XP Track Intimidator Chipper (with all standard equipment) was to be recovered by the bank by October 25, 2024 due to $65,147.34 in unpaid principal and interest. “The Security Agreement expressly provides that Defendant shall not sell, offer to sell, or otherwise transfer or dispose of the 2021 Bandit 12XP Track Intimidator Chipper,” according to the complaint. The bank alleges the chipper was transferred/sold in breach of those terms.
Some of the equipment the FSC owned was for sale on the Facebook Marketplace and a Bandit chipper shows as sold.
A business loan with an outstanding balance of $373,534.58 requires the FSC to provide “every item of Collateral,” including all inventory, equipment, accounts, chattel papers, instruments (including all promissory notes), letters-of-credit rights, letters of credit, documents, deposit accounts, investment property, money etc. Interest on the loan will continue to accrue at a rate of $175 a day.
A credit card with an outstanding amount of $25,901.08 is also listed in the complaint.
The complaint requests the court to award attorney’s fees, punitive and exemplary damages, expenses, costs and fees.
The Fire Safe Council’s Executive Director Jamie Jones provided the following comment on the lawsuit:
The Fire Safe Council has long been committed to wildfire resilience and community safety. Over the past few years, at the request of our primary agency partner, we expanded operations significantly, delivering more than $20 million in partner projects. However, in early 2024, this partnership ended abruptly, resulting in the loss of millions in contracts and leaving the organization with nearly $350,000 in unpaid services.
In response, our Board of Directors and staff took immediate steps to address these financial challenges, working closely with Tri-Counties Bank and other financial partners. While Tri-Counties has been instrumental in supporting our growth, the reality is that we do not currently have the financial resources to meet our obligations. We fully intend to repay our debts, but this will take time.
This financial strain stems from the sudden loss of grant-funded projects, which are the backbone of nonprofit operations. While we receive some funding through donations, memberships, and services like chipping, the largest source of income is grant funding. Without those funds, we were forced to dramatically cut back operations, reducing staff from over 25 employees—most assigned to large landscape projects—to just four employees today. These remaining staff members continue to support Defensible Space Assistance Visits (DSAVs), reflective signage programs, Firewise Community (FWC) initiatives, and new grant-funded projects, including the Deer Creek Shaded Fuel Break.
By November 2024, it became clear that retaining our fleet vehicles and field staff was no longer viable, and we voluntarily returned our fleet to all lenders. Despite these efforts, outstanding debts remain, primarily from a line of credit leveraged during COVID to cover payroll and unpaid invoices.
We acknowledge that legal action may be necessary for Tri-Counties to recover its financial interests. However, we remain committed to working with all financial institutions and vendors to find solutions—whether through legal proceedings or alternative agreements. Our focus remains on stabilizing the organization, securing new grants, and rebuilding our capacity to continue serving the community in wildfire mitigation and preparedness.
The default hearing is set to be heard in June in the Nevada County Superior Court.