VRI/Capital Resorts Lawsuit--FYI Copy of Email from resort

[5finny]

​ ​ ​ ​ WINNERS CIRCLE RESORT​ ​ ​ ​ ​ ​ Dear Member: Here are the results of the recent annual election at the Winners Circle Beach and Tennis Resort Condominium Owners Association (“Association” or “Winners Circle”). As you are likely aware, there was some delay in publishing these results due to irregularities and uncertainties associated with the manner in which the election was facilitated. Ultimately, three director seats were up for election. The results of the election are as follows: · Kevin Mulvey · Dan McGeorge · Richard Muller It is noted that Richard Muller will be occupying the single seat available to representatives of VRI/Capital Vacations (“VRI/Capital”) and its related entities. While VRI/Capital’s related entities (MROP and CRG Development) used their significant share of votes to attempt to seat three directors, all of whom are executives of VRI/Capital (which is also the Association’s current outside management company and which facilitated the election), the Association’s governing documents prohibit the same. Recall that in 2021, the Winners Circle membership voted to amend its Bylaws to prevent exactly this type of scenario where a corporate entity, and its related entities holding a large share of intervals, could use their votes to place multiple directors on the Board. If this happened, Winners Circle would potentially be perpetually under the control of those related entities. The membership voted to ensure this did not happen and the Bylaws were accordingly amended, consistent with the membership’s will. It is also worth noting that the two VRI/Capital affiliates, Multi Resort Ownership Platform, Inc., aka “MROP,” which has partnered with VRI/Capital for nearly two decades, per its website (see https://www.multi-resorts.com/) and CRG, Development, LLC, which shares the exact same address as VRI (the Association’s outside management company which facilitated the election), have filed suit against the Association in San Diego County Superior Court seeking to have its employees seated on the the Board of Winners Circle. Yes…related entities of the Association’s management vendor are suing the Association to try to force three of its executives to occupy a majority of the Board. A link to the lawsuit is provided here: https://odyroa.sdcourt.ca.gov/cases/CfDJ8GzIvBIU1nBAqaOiy3iA8khkntGiIZlOqayGjc5U57-fMuUv_gZsF-__yYgcWAMJuprAC9lv8u8gMPcoxnLFv5F19Oad_VK4tTMNFi6KTzGkdg4lnkQSS_4CwyNLrcvc9A Whether or not the VRI/Capital affiliates will continue to pursue said litigation, now that the results of the election have been released, is unknown. Irrespective of these hostile actions towards Winners Circle, the Association is prioritizing moving forward and focusing on making the resort the best place it can be for those who matter most: its members. Thank you for your attention to this communication and for your membership in Winners Circle. Sincerely, Winners Circle Resort Board of Directors​ 550 Via De La Valle, Solana Beach, CA 92075 (858) 755 - 6666​ ​ Time to look for a new management company ?​ ​

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[gravityrules]

Thanks for posting this. Wow, VRI was a respected manager of independent timeshares prior to being bought out by CV. Although they still exist in name, it seems they are effectively CV now.

 

[jackio]

Wow. I own 2 resorts that are/were VRI. Interesting to see what will happen.

 

[theo]

Capital Vacations seems to have something of a “reverse Midas touch” when they get their tentacles into an independent resort. The CV “touch” certainly does not turn anything into gold, but perhaps into…..something else.

We have long owned a few weeks at a place historically well managed by VRI. We have not yet seen evidence of the hand of Capital there, but only because the property has been entirely closed since sustaining severe damage from Hurricane Ian in September of 2022 and more recently, new damage from Hurricanes Helene and Milton in 2024. Capital took over VRI in or around May of 2022, if I recall correctly. I will certainly be watching for (and sniffing for) any evidence of the unwelcome “touch” of Capital Vacations once our VRI-managed property finally reopens.

I wish the folks at Winners Circle the best of luck in prevailing over the Capital vultures suing their Association. It is truly unfortunate that the Winners Circle HOA will now apparently have to incur unwelcome legal costs to successfully repel those Capital affiliated parasites from effecting a hostile takeover of their Board.

 

[Eric B]

We own a couple of weeks at Fort Lauderdale Beach Resort, an independent that was fairly well managed by VRI. Once Capital Vacations took over and started up sales presentations to all the owners, the resort board saw the writing on the wall and did not renew the expiring management contract with them. FLBR is now managed by Vacatia and seems somewhat better off than before.

 

[Eric B]

Duplicate posting - nothing to see here. Please move along.

 

[gotvacations]

​ ​ ​ ​ WINNERS CIRCLE RESORT​ ​ ​ ​ ​ ​ Dear Member: Here are the results of the recent annual election at the Winners Circle Beach and Tennis Resort Condominium Owners Association (“Association” or “Winners Circle”). As you are likely aware, there was some delay in publishing these results due to irregularities and uncertainties associated with the manner in which the election was facilitated. Ultimately, three director seats were up for election. The results of the election are as follows: · Kevin Mulvey · Dan McGeorge · Richard Muller It is noted that Richard Muller will be occupying the single seat available to representatives of VRI/Capital Vacations (“VRI/Capital”) and its related entities. While VRI/Capital’s related entities (MROP and CRG Development) used their significant share of votes to attempt to seat three directors, all of whom are executives of VRI/Capital (which is also the Association’s current outside management company and which facilitated the election), the Association’s governing documents prohibit the same. Recall that in 2021, the Winners Circle membership voted to amend its Bylaws to prevent exactly this type of scenario where a corporate entity, and its related entities holding a large share of intervals, could use their votes to place multiple directors on the Board. If this happened, Winners Circle would potentially be perpetually under the control of those related entities. The membership voted to ensure this did not happen and the Bylaws were accordingly amended, consistent with the membership’s will. It is also worth noting that the two VRI/Capital affiliates, Multi Resort Ownership Platform, Inc., aka “MROP,” which has partnered with VRI/Capital for nearly two decades, per its website (see https://www.multi-resorts.com/) and CRG, Development, LLC, which shares the exact same address as VRI (the Association’s outside management company which facilitated the election), have filed suit against the Association in San Diego County Superior Court seeking to have its employees seated on the the Board of Winners Circle. Yes…related entities of the Association’s management vendor are suing the Association to try to force three of its executives to occupy a majority of the Board. A link to the lawsuit is provided here: https://odyroa.sdcourt.ca.gov/cases/CfDJ8GzIvBIU1nBAqaOiy3iA8khkntGiIZlOqayGjc5U57-fMuUv_gZsF-__yYgcWAMJuprAC9lv8u8gMPcoxnLFv5F19Oad_VK4tTMNFi6KTzGkdg4lnkQSS_4CwyNLrcvc9A Whether or not the VRI/Capital affiliates will continue to pursue said litigation, now that the results of the election have been released, is unknown. Irrespective of these hostile actions towards Winners Circle, the Association is prioritizing moving forward and focusing on making the resort the best place it can be for those who matter most: its members. Thank you for your attention to this communication and for your membership in Winners Circle. Sincerely, Winners Circle Resort Board of Directors​ 550 Via De La Valle, Solana Beach, CA 92075 (858) 755 - 6666​ ​ Time to look for a new management company ?​ ​

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My CV managed resort is the most poorly managed timeshare I own. We went from SPM to CV. They charge more than a realtor or travel agent to rent a unit for an owner. 30% vs 10% plus a marketing fee.

 

[JohnnyO]

Wow. We dodged a couple of bullets. We used to own two deeded intervals a Winners Circle (which we bought one for cheap & one "free") but had a family health emergency and deeded them back to the HOA around 2015. VRI was a decent company to deal with and the deedback was fairly cheap at the time. Plus they traded well in RCI when one could "game" the system. Now I stumbled on the CV forum and wow what a nightmare. I also went to look at the Winners Circle website and boy the HOA is carrying a lot of inventory. Over 700 units. That's a lot of voting power for management as well. I hope the lawsuit turns out favorable for the WC owners. yikes.

https://www.winnerscircleresort.com/files/4027/Available_Inventory_8.2024.pdf