Wyndham dropped from whole owner lawsuit

[bnoble]

A few days ago, the Court entered a ruling granting T&L/Wyndham's summary judgement request. This means T&L/Wyndham is no longer a defendant to the lawsuit. The remaining entities are: Pahio, the AOAO, and the individual Board Directors. The IOA was already dismissed last year.

As far as I know, Pahio is a subsidiary of Wyndham, but a relatively small one, covering just the management company for the four Kauai Pahio resorts---KBV, plus the three in Princeville. This pretty much means the deep pockets of Wyndham are off limits. The AOAO is just the owners collecitvely---which essentially means the whole owners are suing themselves. The individual Directors aren't going to come up with anything, and if they are somehow found liable, they will presumably just declare bankruptcy.

I don't know if this kills the whole-owner lawsuit, but it sure does diminish their chances of a successful exit. Here's a link to the order, hot off the eKōkua presses:

011-Wyndham-MotSumJud.pdf

drive.google.com

 

[tango]

Thanks for the update.

 

[DeniseM]

Good! Let's get this over with!

 

[jacknsara]

Aloha,
The KBV IOA BOD meeting is tomorrow (4/10/25) and the annual meeting is Friday (4/11/25). I have schedule conflicts and am unlikely to dial into either. Hopefully someone can ask a question about this news which is apparently a handful of months old.
Jack

 

[jacknsara]

Aloha
Things changed and I was able to log into the meeting. My notes follow.
Incorporation of AOAO did pass
YTD occupancy is 90%
Budget performance is good
Delinquencies is 20.86 % as of end of February.
AOAO has approved contract to proceed with post tension cable repair in buildings G & H. Work should begin in 30 - 60 days depending on permit reviews. Current ECD is 9 months after start.
8 foot tall plywood fence will be built all around buildings G and H including some of the parking lot.
We have rhinoceros beetles in some / many of our coconut palm trees. The trees will be removed. This is happening in several places around Kauai.

 

[DeniseM]

So they ignored the elephant in the room? No discussion of the special assessment to repair the construction flaws of the entire resort or the partition action?

 

[schreff]

What were the actual results of the incorporation ballot? Did Wyndham control the outcome? These later day results including the court decision are very concerning.

In my opinion, this is catastrophic to we the owners. It appears that the BOD now will have more protection and we will have less power to challenge anything. The void of full and complete information from the BOD and Wyndham is deafening.

I just pity the folks who recently bought KBV not knowing the surprises yet to come.

 

[jacknsara]

More importantly, what happened to the non profit ballot? This could have changed any possible fiduciary negligence resource we have.

my previous post included "Incorporation of AOAO did pass""

 

[schreff]

my previous post included "Incorporation of AOAO did pass""

Yes, I know and appreciate your post very much but what I was interested in is the actual numerical results of the votes along with establishing the fact of " how much control does Wyndham have ". Does it really matter what we, the owners, vote on when Wyndham and the BOD can just decide that the the votes do not count like the owners' vote that previously disappeared?

 

[ecwinch]

The individual Directors aren't going to come up with anything, and if they are somehow found liable, they will presumably just declare bankruptcy.

I don't know if this kills the whole-owner lawsuit, but it sure does diminish their chances of a successful exit. Here's a link to the order, hot off the eKōkua presses:

The Directors are protected by a Directors and Officer (D&O) liability policy. That might yield a couple of million to pay off the plaintiff’s lawyers, something they certainly know about.