Superior Court Judge Thomas J. Hutchins, in a ruling published late Tuesday, ordered the Le Parc Community Association to assume the $7.2 million debt incurred by a former association fired by homeowners last March.

The judge also upheld a ruling by Superior Court Judge John J. Hunter last month that allowed a court-appointed receiver to assess 264 Le Parc homeowners $2,000 a year to pay off a debt to ZM Corp.

The ruling forces condominium owners to pay combined assessments of more than $300 a month -- and not be guaranteed such basic services as water, gardening, trash pickup, electricity and other utilities.

Many who face assessments of $25,000 and up fear they might lose their homes.

"We lost the battle, but the war is not over," said Ferenc Gutai, president of the Le Parc Community Association. "Regardless of this setback, we fully intend to fight this thing until someone, somewhere, gets a grasp as to what is happening with these families."

The basis for Hutchins ruling is a 1998 judgment awarded by an arbitrator in favor of Darren Zuzow, president of ZM Corp. of Arcadia, for breach of contract and defamation by the Le Parc Homeowners Association related to repairs done after the 1994 earthquake.

Hutchins cited a corporate legal precedent saying the homeowners' swap amounted to a fraudulent attempt to avoid the debt.

"The members of Le Parc (Community Association) are the same as the judgment debtor," he wrote. "Transfer of management responsibilities E was done for the very purpose of avoiding the ZM judgment."

Attorneys for ZM were not available for comment Tuesday. Members of the Le Parc legal team were crestfallen by the judgment.

"There will be a certain appeal," said Darren Larsen, an attorney who represents about 80 Le Parc households. "It's not over yet."