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KBV Owners - check your email for an important letter

Aurelius

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I wouldn’t call it an overabundance of caution at all. Anyone who makes any points that don’t support the narrative are compared to “climate change deniers” and “flat-earthers”, referred to as “uneducated” and banned.
 
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magmue

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I was trying to frame it nicely. :shrug:

But as Joseph Heller said in Catch-22: "Just because you're paranoid doesn't mean they aren't after you". Given what has transpired in the last few weeks, leading Jack, who devoted enormous time and energy to trying to work within the system (as we were led to understand it) to say "Jeff Bellin has been correct all along", I get where it is coming from, even if I think that you and Eric have gotten caught in the blow back.
 

ecwinch

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I'm glad you brought up Jack: It was Jack who stated that there has been a hostile take over of KBV by Wyndham at the Election meeting, and then resigned from the BOD in protest. I'm not OK with that, but I understand why you are. Have a great night!

Denise - while I would like to think you are open-minded on the topic, I am doubtful that you understand much about my position.

Because I have clearly stated that I was disappointed that Jack resigned from the BoD.

And if I supported to Wyndham's efforts to seat their slate of directors as you speculate, why would I have assigned my proxy to Jack? I could be wrong - but I doubt he cast my proxy in that fashion.

For as much as the rhetoric of "hostile takeover" makes for a great tag line, as I have posted before - that takeover occurred under tenure of those same savekbv.org leaders who now want to sue over the decisions they made while on the BoD. Brian frames that as:

Directors, past and present, who are in breach of their fiduciary duty to the Association are liable for any damages caused by the breach.

Because Brian likewise seems to reject the defense those former BoD members have offered on these pages:

Generally, this duty is also understood to include informed decision-making and attentiveness. Informed decision-making means knowing the law and the corresponding requirements for the Association, keeping tabs on its daily activities, and then, basing decisions on that knowledge. Devoting the necessary attention to the Association requires the Directors to act in a competent manner and spend the time required to care for the Association as needed.

Do those facts not trouble you? That our dues will potentially be consumed defending the Association from a lawsuit brought by former BoD members against the decisions they made and their failure to properly discharge their fiduciary duties as Brian alleges?
 
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DeniseM

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I don't think you know what happened on election day, or directly leading up to it. It was primarily the actions of one person in collusion with Wyndham - not the entire BOD.

And, I'm happy to pay to keep Wyndham out - I intend to contribute to the owners' lawsuit. Yes, I understand that the BOD will have to defend itself, but that's how it works. What's the alternative - sit back and let Wyndham get away with criminal behavior and take over management again? Nope.
 
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ecwinch

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I don't think you know what happened on election day, or directly leading up to it. It was primarily the actions of one person in collusion with Wyndham - not the entire BOD.

And, I'm happy to pay to keep Wyndham out - I intend to contribute to the owners' lawsuit. Yes, I understand that the BOD will have to defend itself, but that's how it works. What's the alternative - sit back and let Wyndham get away with criminal behavior and take over management again? Nope.

Brian's lengthy Demand Letter makes numerous allegations regarding the actions of the incumbent BoD - not just one individual. Take for instance this statement:

The duty of obedience requires the Board to operate within the scope of the Association’s rules, policies, Declaration, articles of incorporation, and Bylaws. In addition, the Board must comply with state and federal laws. Directors are supposed to follow the rules of the Association as laid out in the various governing documents, as well as applicable state and federal laws (such as IRS non-profit record-keeping and meeting minutes requirements). Not only has the Board failed and refused to familiarize themselves adequately with the Association’s governing documents and applicable law, they have willfully ignored and violated them and the advice of the Association’s general counsel, putting the Association as a whole at risk of, among other things, insurance coverage denial for being out of compliance with applicable law and governing documents, and having the legal validity of its actions and agreements challenged.

Brian's demand does not limit itself to recent violations of the by-laws or the BoD's fiduciary duties.... it highlights the failure of the entire BoD over an extended period of time. If what Brian asserts is true, everyone who has served on the BoD bears responsibility for those breaches - not just one person.

One only need to go over the Canada forum to observe the adverse effects that occurs when owners bring action against the association.

As the saying goes.... anger is a good servant, but a poor master.
 

DeniseM

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Eric - Why are you avoiding the glaring actions of one BOD member in collusion with Wyndham that handed the election to Wyndham? Yes, there are other issues, but clearly, this is elephant in the room that lead us to this point, but it seems like you are avoiding it.

Regarding the ongoing issues with the failure of the BOD to fulfill their fiduciary duty - at this point, I don't know enough about that to discuss it. Brian's letter was the first time I heard of it, but I'm sure we haven't heard the last of it.
 

ecwinch

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Eric - Why are you avoiding the glaring actions of one BOD member in collusion with Wyndham that handed the election to Wyndham? Yes, there are other issues, but clearly, this is elephant in the room that lead us to this point, but it seems like you are avoiding it.

Regarding the ongoing issues with the failure of the BOD to fulfill their fiduciary duty - at this point, I don't know enough about that to discuss it. Brian's letter was the first time I heard of it, but I'm sure we haven't heard the last of it.

What allegations are you referring to? Can you point me to the post here on TUG that outlines said allegations and how I can substantiate whatever that post outlines?
 

magmue

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Aurelius

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From the letter:

On May 16, 2019, the Board voted 3-2 not to renew the Association’s management contract with Grand Pacific Resorts, without alleging any performance issues or contract breach by the Plan Manager. This was done without the Member vote required by the Declaration, and contrary to the advice of the Association’s general counsel.
I don’t recall a membership vote to terminate the Wyndham agreement when the change was made to GPR. Again, why is it a problem now if it wasn’t then?

Answer: Because it doesn’t suit the agenda of some folks that ran for the board and lost. These same folks are about to cost the owners a ton of money in legal fees. They’re not suggesting suing Wyndham. The association would be the one being sued which means owners are paying for the legal defense.
 

ecwinch

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Look at the bright side, at least owners will have a front row seat to this proceeding. Hopefully they will provide popcorn, because the price of admission will not be cheap. As to the central question:

Are the demands made in the demand letter reasonable and within the authority of the BoD?
By what authority can a newly elected BoD, invalidate the election conducted by a prior BoD?

For instance is this a reasonable demand?

- Pass a resolution authorizing Grand Pacific Resorts to retain independent legal counsel(s) on behalf of the Association to investigate and make recommendations to all Members about:
1. Any possible civil claims or criminal conduct regarding Wyndham Vacation Ownership, Inc. (including any of its subsidiaries, affiliates, agents and employees), and any past or present officer, director, attorney, accountant, employee or agent of KBVIOA;


- Now isn’t GPR - as Plan Manager - an employee or agent of the KBVIOA?
- If the investigation is to review the conduct of past directors, are the circumstances regarding the 2016 termination of the mgt contract something that might be within the scope of said investigation?
- Is it reasonable to believe that GPR might have an inherent conflict of interest given the BoD has voted to terminate their mgt contract?

And more importantly, who and heck is going to pay for this investigation and how do we manage that cost?


Or is the demand letter just legal theater and a waste of association resources? I think someone might just be playing to the crowd. It will be interesting to see what a court thinks.
 
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geist1223

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While I have no dog in this fight I have belonged to 2 timeshare organizations that had Owners initiate law suits against the Manager/Developer. The only ones to really get anything out of the fights were the Attorneys. These can be expensive propositions. Someone has to pony up money to get things started.
 

Aurelius

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I heard something went out by email but I didn't receive it, any updates?
 
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