- Joined
- Feb 3, 2008
- Messages
- 1,726
- Reaction score
- 393
- Resorts Owned
- Westin Lagunamar, Westin Aventuras, Marriott Grande Vista, Sandos Caracol, Festiva, Diamond Resorts (Hawaii Collection)
We, and presumably other Virgin Grand owners, received this notice today. Are Bay Vista owners similarly affected?
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August 27, 2012
Dear Fellow Virgin Grand Villas Owner:
In our last message, in June, we notified you that about 200 owners (approximately 6% of owners) had sued Starwood in connection with our timeshare property, asking the court, among other things, to require refunding to owners the millions of dollars that have been spent on refurbishments. We also reported that Starwood had taken the position that since our owners association would be affected by an adverse outcome of the litigation, the suit could not go forward unless our owners’ association was included as a party. The judge agreed, which meant that the plaintiffs either had to drop the suit or sue the association. The plaintiffs chose to add the owners’ association as an additional defendant.
Because the association may have interests that conflict with those of Starwood, Starwood’s attorney advised us to seek separate legal representation. We must participate in the litigation, because if we were to default in the case instead of defending it, the court might award the damages that the plaintiffs seek, in which event we would have to increase maintenance by a large amount to recover the resulting deficit. The Board authorized an initial outlay of $25,000 for such counsel, although we expect that it may cost much more, requiring an increase in the annual maintenance fee to fund the defense of the lawsuit.
Also, because the interests of Starwood may conflict with those of the Association, the Board has decided that the two of us, as your owner-elected representatives on the Board, will select counsel to represent the Association and that we will direct the lawsuit. We are now in the process of interviewing law firms that have the appropriate expertise and that do not represent Starwood entities.
We think that this lawsuit is unlikely to succeed, and that defending it will involve unfortunate but necessary expenditures from the owners’ association budget. We will keep you posted as further developments occur.
Sincerely,
Philip G. Schrag
phil.schrag@gmail.com
Bob Werbel
robert.werbel@yahoo.com
- - - - - - -
August 27, 2012
Dear Fellow Virgin Grand Villas Owner:
In our last message, in June, we notified you that about 200 owners (approximately 6% of owners) had sued Starwood in connection with our timeshare property, asking the court, among other things, to require refunding to owners the millions of dollars that have been spent on refurbishments. We also reported that Starwood had taken the position that since our owners association would be affected by an adverse outcome of the litigation, the suit could not go forward unless our owners’ association was included as a party. The judge agreed, which meant that the plaintiffs either had to drop the suit or sue the association. The plaintiffs chose to add the owners’ association as an additional defendant.
Because the association may have interests that conflict with those of Starwood, Starwood’s attorney advised us to seek separate legal representation. We must participate in the litigation, because if we were to default in the case instead of defending it, the court might award the damages that the plaintiffs seek, in which event we would have to increase maintenance by a large amount to recover the resulting deficit. The Board authorized an initial outlay of $25,000 for such counsel, although we expect that it may cost much more, requiring an increase in the annual maintenance fee to fund the defense of the lawsuit.
Also, because the interests of Starwood may conflict with those of the Association, the Board has decided that the two of us, as your owner-elected representatives on the Board, will select counsel to represent the Association and that we will direct the lawsuit. We are now in the process of interviewing law firms that have the appropriate expertise and that do not represent Starwood entities.
We think that this lawsuit is unlikely to succeed, and that defending it will involve unfortunate but necessary expenditures from the owners’ association budget. We will keep you posted as further developments occur.
Sincerely,
Philip G. Schrag
phil.schrag@gmail.com
Bob Werbel
robert.werbel@yahoo.com
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