Category Archives: Court Cases

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Case Law Update: Golf Course Restrictive Covenant Upheld

Owners of unprofitable golf courses are increasingly wanting to redevelop their golf courses as residential property, especially in areas where land for residential development is at a premium. Some golf courses are subject to recorded covenants that require the property to be used for recreational purposes and therefore prohibit such redevelopment.  In Victorville West Limited … Continue Reading

Case Law Update: Club Liability Release

Clubs regularly require new members to sign liability releases, some of which are drafted quite broadly.   A recent decision from the New Jersey Appellate Division considered the enforceability of such a provision. Crossing-Lyons vs. Towns Sports International, N.J. Sup. Ct, App. Division (July 11, 2017). In Crossing-Lyons, a fitness club member sued the club after … Continue Reading

Case Law Update: Membership Deposit Refund Amendment Overturned

Verandah Development v. Gualtieri, Florida 2nd District Court of Appeals (February 17, 2016) This case provides insight to clubs with refundable memberships who want to amend a membership document provision related to refunds or resigned membership resale. The plaintiff member’s Membership Agreement provided that members who “resign their membership will be refunded their initiation … Continue Reading

Guest Privacy, Safety and Security

A jury’s decision to award sportscaster Erin Andrews $55 million as a result of a hotel’s failure to reasonably safeguard her privacy, safety and security is a forceful and important reminder to hotel owners and operators: A guest’s privacy and safety are paramount.  Certainly this jury saw it that way, and other juries might reach … Continue Reading

Case Law Update: Community Covenants’ Impact on Club Operations

Warrender vs. Gull Harbor Yacht Club, Court of Appeals of North Carolina (August 6, 2013) This decision illustrates the importance of reviewing and considering the impact of restrictive covenants on operations of a club or marina before acquiring or restructuring it.  The Court ruled on a number of issues related to the restrictive covenants in … Continue Reading

Condo Hotels: What’s the Reality? Sale of Real Estate or Security — Ninth Circuit Sheds Some Light

The Ninth Circuit Federal Court of Appeals in Salemeh, et al v. Tarsadia Hotels, et al, reviewed the question “Is it real estate or is it securities” de novo. This required the Court to thoroughly review the state and federal securities laws, as applied to condominium unit offerings. The Court held that a properly structured … Continue Reading

Stand Your Ground

Recently we have seen four situations where a hotel owner has taken matters into its own hands to remove the hotel manager from the hotel.  These cases are referred to as the Aviara, Marriott Waikiki, Fairmont Turnberry, and the Eden Rock.  Much has been already written and discussed about the “midnight raid” strategy where the … Continue Reading

2012 Hotel and Lodging Legal Summit – Hotel Business Continues to Excite

Perhaps “excite” is too strong a word, but the level of interest and excitement  was palpable and real at the inaugural  Georgetown  University Law  Center – American Hotel & Motel Lodging Association  Hotel and Lodging Legal Summit.  The event, hosted at the Georgetown  University Law  Center in Washington, D.C., drew over 150 hospitality, lodging and entertainment lawyers from both national and international locations, including … Continue Reading

Mortgage Holders Get a Boost

Author:  Michael J. Sullivan, Esq.  The Supreme Court’s opinion in Radlax Gateway Hotel LLC, et al. v. Amalgamated Bank, which requires that real estate mortgage holders be permitted to credit bid up to the amount of its claim, will no doubt heighten interest in the “loan-to-own” strategy of purchasing debt to acquire the hotel. Through … Continue Reading