# Diamond Resorts just filed a second lawsuit against Tahoe Beach and Ski Resort.



## TUGBrian (Nov 21, 2016)

> Diamond questions the right of the Association Board to vote the deeds that the Association owns for specific candidates.
> 
> At the September 2016 Tahoe Beach and Ski Resort elections there were two vacating positions and two candidates.  Everyone that voted including Diamond with 22% ownership and the Association with 3% ownership voted for the only two candidates that were running for the 2 positions.  Now Diamond is suing because the Board voted Association Owned inventory for the 2 candidates.



another member asked me to post this...so here we go!

see attached complaint

http://tug2.net/resources/driattach.pdf


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## harveyhaddixfan (Nov 24, 2016)

Wait, isn't this exactly what Diamond does with all of the weeks "The Club" owns so that they can control a resort? And then in the filing it says the HOAs are "non-profit"? That's fine and dandy except for when you have a "for-profit" company controlling the HOA. Geez.


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## TUGBrian (Nov 24, 2016)

it does seem extremely hypocritical indeed.


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## fcarothers (Nov 26, 2016)

We would not own a Diamond managed resort under any circumstances.  In fact, we gave away our 2 units that were taken over by Diamond.  

It is our opinion that Diamond's strategy is to load the board with their people, then use owners maintenance fees to fund the promotion of their sales activities--the profits from which go into Diamond's pockets.


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## kc01075 (Nov 26, 2016)

fcarothers said:


> We would not own a Diamond managed resort under any circumstances.  In fact, we gave away our 2 units that were taken over by Diamond.
> 
> It is our opinion that Diamond's strategy is to load the board with their people, then use owners maintenance fees to fund the promotion of their sales activities--the profits from which go into Diamond's pockets.


Diamond strategy is similar to some other timeshare companies by maintaining 15-20% of the inventory themselves for rental purposes, pay minimal assessments, control the boards with their employees or targeted owners.


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## jbercu (Nov 27, 2016)

While Diamond strategy is the same, no other timeshare company has the predatory practices of Diamond. 

It is important to note that Diamond made sure to include the US Collection and the California Collection as plaintiffs.  The US Collection and the California Collection are not owners at Tahoe Beach and Ski, but share the cost of the lawsuits which is running in the millions of dollars.  In order to justify the inclusion of the collections, the lawsuit claims that the collections hold the power over the Trustee of First American Trust.  In all sales presentations Diamond claims that the Real Estate is held in an independent Trust, but we know better.

California Corporate Law 7610 to 7616 governs voting in Non-Profit Corporations and does not exclude voting for Directors.  

In addition, the California Bureau of Real Estate updated this year a document entitled “Living in a California Common Interest Development” in which the CBRE states:

“What is the board of directors and how are its members elected?

The board of directors governs the association. Its members are elected yearly or less frequently, depending upon the terms mandated in the governing documents of the association. The governing documents also determine the number of directors. Directors are elected by the members of the association (homeowners) who vote for vacancies as they occur. Normally, each lot or unit has one vote no matter how many people own it, with the notable exception that the subdivider may, for a time, have up to three votes for each lot or unit he/she owns.”

California Bureau of Real Estate governs all associations where the members own deeds.

This frivolous lawsuit is intended to justify an increase in dues for the collections, and Diamond takes a management fee for "bringing and defending lawsuits" as stated in the complaint.


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