Article

By Robert Harris*

Club Dispute Goes Nuclear

Current economic pressures have created problems for golf course developers and members. The unfortunate events occurring at the Club at Cordillera indicate what can occur if events are permitted to spiral out of control

Against the backdrop of the Rocky Mountains near Vail, the Club at Cordillera offers its members amenities that include four golf courses. Since the current owner acquired the facility in 2009, the club has lost substantial sums. In an effort to save money, the owner has made cuts to services, the lender has announced intentions to auction its $12.5 million loan, and apparently a number of members have withheld their dues. The conflict reached a crescendo on May 24, when the owner filed a $96.5 million lawsuit against the property owners’ association and several of its board members, claiming that their dues withholding is designed to force him into bankruptcy so the association can acquire the property for itself. Shortly thereafter, the owner laid off golf course crews, and announced that only one of the four courses would open this season.

This dispute promises to be a doozy. In addition to the initial lawsuit filed this week, five members of the association have filed an action against the owner, obtaining a temporary restraining order that restricts the uses for which dues can be spent.

In addition, laid off workers may bring claims. And let’s not overlook the looming issue with the expected auction of the $12.7 million loan, with the prospect of a foreclosure action and/or possible lender liability claims.

The property owners’ association appears to be well organized.

This dispute cries out for an intensive mediation effort.

Additional information about this and other disputes can be found at Golf Dispute Resolution (http://www.golfdisputeresolution.com)

Legal Notice: This article may constitute Attorney Adverstising in some jurisdictions. It is for informational purposes only and does not constitute legal advice.

Credits

Originally posted by RobertHarris on 15 Jul 2011.
All contributors: MarleneStone, RobertHarris,
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