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.