This is true. Looks like there are a lot of legal issues to be found concerning this issue and some leases can be written such that they are included. However, I still strongly believe ours was not.
When reading the lease in regard to "replacement costs", it is always referenced in respect to the reserve fund for furniture and fixtures, not the whole building. However, looks like this was argued in court, and of course we lost. Hard for me to figure that one out. Bottom line, NEVER sign another contract, and especially those when you are on vacation and on weekends away from lawyers (not that it would have helped).
For all those who corrected me when I indicated that Fairmont went bankrupt because they knew they could not charge these fees, my apologies and thank you. Would it be correct to say that if Fairmont have been given the current court decisions, they would not have needed to pursue bankruptcy because they could have charged the renovation fee, or anything they want, and clearly paid any/all liabilities?
This brings me to the situation at hand today and maybe hinted to above. Many of us are now committed to pay a huge sum of money by court order and/or the workings of our lawyer. I suspect the rest will soon will be committed to paying extreme sums of money. It is my understanding this money was specifically billed (as presented to the court) for the renovation of the resort and would therefore be committed to stay at the resort for this purpose. Is this not true? If so, what happens if it is not used for renovation, would that be illegal and a criminal case to be made? With this forced settlement, it is estimated there will be 10's of millions of dollars flowing in. There are other posts speculating this money would flow elsewhere, but I would assume it will need to be accounted for on future audited financial statements, assuming they are made.
Is there any ability to figure out what has happened to what must be 10's of millions of dollars that have already been paid by the people who paid to stay or have settled. This money also, as specifically stated, should have been committed to the renovation/operation of the resort and must be on the current audited financial statements, correct? Can this be figured out, or has someone figured it out? There have been posts indicating much of the resort is still run down and boarded up. Again, if the money was not used for this purpose, would that not be illegal and criminal charges filed? Is a forensic audit required to figure this out? I know our lawyer determined that a forensic audit was not practical for cost reasons, but ironic where we are now. Is it legal for the buildings to be sold and the money pocketed even if the money is spent for operations and renovations, or does that also need to stay with the resort? Anyone with legal or accounting knowledge in this area that can say with confidence?