|Club Land’or faces legal action|
Guardian Business Editor
Published: Apr 03, 2012
Club Land'or is facing legal action from at least one U.S. investor, Guardian Business can confirm, with more than 100 others "waiting in the wings".
According to court documents obtained by this newspaper, filed in the Henrico County General District Court of Virginia, an investor in the Paradise Island property is demanding to be released from the lease agreement and awarded $25,000 in damages.
The defendant, who signed a 22-year lease with Club Land'or back in 1994, alleges that the resort has unjustifiably "denied plaintiff access to the use of the leased units per terms of the lease and subsequent promises".
Although all rent has been paid, the plaintiff claims it has been billed "for a series of charges not in the lease agreement". The allegation is a common grievance spreading among stakeholders in the property.
A spokesperson for investors, who spoke to Guardian Business on condition of anonymity, said a group of more than 100 people is now preparing to file litigation against Club Land'or.
"They keep imposing special assessment fees, and they keep going up, and there is no accountability," the source said. "They aren't putting that money into the resort and we think they are just taking the money. A lot of people are just very upset, many of whom have owned there for 20 or 25 years."
The spokesperson said momentum is growing, and this first legal action is expected to snowball if all goes well.
The hearing date is scheduled for May 14.
Disputed fees, the lease agreement, repossession of space, banked vacation weeks and the refusal to use vacation are all expected to be addressed on this day.
Last month, a top executive at Club Land'or told Guardian Business, on condition of anonymity, that the property just completed new carpeting in all the waterfront public areas, and more carpeting is en route.
He said the resort is also in the process of being updated, "and additional villas are to be renovated next week, as the occupancy lets up somewhat so that they may be renovated".
However, investors in the property remain concerned about how fees, adding up to nearly $6 million each year, are being spent by management, according to sources close to the matter.
Top executives insist that day-to-day operations at the resort remain normal.
In addition to the $25,000 in damages, the plaintiff is also seeking attorney costs and six percent interest for the defendant’s repossession of the weeks exchange program, as well as denial to use additional banked weeks and unused rent.
|Last Updated on Tuesday, 03 April 2012 22:45|