The "let's not get the legal party involved" stuff is indeed shady. It smacks of an improper relationship (been there with similar issues with HOA, finally resolved in my favor, about illegal charges....oddly when I got the HOA board itself involved they found out the management company had been breaking the law and putting the HOA at substantial liability).

Anyhow, since you seem to have gotten this resolved on your terms, there's little more to worry about.