concert golf partners lawsuit

опубліковано: 11.04.2023

(Id. 149-1 at 47. All of these ball drops' as Peter Nanula would refer to them, along with the disregard to the contract (60 Acres of Land vs 80, Modern Clubhouse Standards, Outings during off-peak times, and $5M of improvements [I'd be shocked if half of that was spent with the patchwork that has been done to date]) have brought me to my design [to resign. 125-5, Ex. Make your practice more effective and efficient with Casetexts legal research suite. 100-18, Ex. Nanula responded, It looks like Marty was involved in a muni bond-rigging scandal in the late 1980s, and that it would be hard for [CGP] to work with him based purely on reputation concerns. (Id.) (See Doc. 14 to Ex. 100-5, Ex. ), Meyer testified that the Concert Defendants had discretion as to do what they wished as to the four general areas of capital improvements discussed and that the Concert Defendants did everything that was discussed. (See Doc. W at 20:9-21:23; see also id. 100-21, Ex. (See Doc. The Court concludes there is not. No. (Id. ), On November 30, Meyer emailed Nanula the contact information for NVR and NPT/Metropolitan as a potential developer Nanula could work with for developing the property. (Id.) 149-1 at 136-37. Call Us Now or Fill Out a Form Below. 36 to Ex. at 120:10-121:2 (I mean everything that they undertook required it to be redone or needs to be redone again . 22 to Ex. Section 551(2) outlines the five circumstances that give rise to a duty to disclose. 20 to Ex. On November 30, 2016, after learning that CGP had an interest in acquiring Philmont Club, Marty Stallone, an Executive Vice President at Metropolitan, sent Nanula the AOS between NPT and PCC, along with the Eighth Amendment. A (CGP's proposal that it would fund approximately $5 million in phase two capital improvement projects after a real estate transaction involving the sale of approximately 50 to 60 acres on the South Course). ), Ridgewood and CGP continued to keep in touch as things moved ahead with CGP and PCC. ), On September 12, Nanula sent several follow up questions to Silverman, which Silverman answered. at 682-83. However, NPT advised NVR that it would terminate the AOS effective Friday, September 16 (two days later) if it did not receive written notification from NVR advising which course of action it had chosen. (See Doc. ), Plotnick also suggested that $5 million from the sale of the Property be reinvested in Philmont Club as capital expenditures. Final Judgment entered in favor of PGCC and Concert Plantation. NPT failed to cite a single case supporting its position that CGP and Ridgewood's relationship was basic to the transaction. No. (See Doc. No. A grant of summary judgment on the sole basis of absence of provable damages, therefore, is generally improper. (Id. CC (describing CGP as a boutique private club owneroperator). Ct. 2013) ([S]ection 551 imposes liability for nondisclosure of information when the defendant has a specific duty to disclose, which arises only in certain, enumerated circumstances.). NPT insists that Ridgewood did not make an informal offer for $5 million, despite Meyer's testimony in 2021 that such an offer was made. [I]f you knew that Mr. Nanula was promising to spend $5 million to you, but in reality he was planning to actually spend less than $5 million, would you have still voted to sell the club to Concert Golf? Under Concert Golf, the club will be debt free and run by a professional golf club company, the Post reported. No. and then Concert told Ridgewood to stay down, therefore, not to have potentially two people interested in Philmont, that would have changed [his] opinion of the transaction. No. . See In re Rumsey Land Co., LLC, 944 F.3d at 1273 n.9 (Although contractual partners qualify as parties to a business transaction, a contractual relationship is not required under 551(2)(b).); Church Mut. No. Now it is just a matter of executing. (Id.) . 1.) 100-5, Ex. S.) Stallone stated, Yes, but that was with all the environmental and zoning contingencies that you said the club was no longer interested in accepting. (Id.) ), 1. Case Summary. W at 54:10-22 (Q: . 101-1 at 11.) ), On September 16, NVR told Glenn Meyer, then-President of PCC, and PCC's counsel that NPT indicated to NVR its desire to exit the transaction and NVR will be stepping back into the shoes of the Purchaser. (Doc. ), The following day, July 23, NPT and PCC entered into an agreement of sale (AOS), pursuant to which PCC agreed to sell the Property to NPT for $12 million, assuming a yield of 162 lots. (Id.) 149-1 at 38; see also Doc. at 36:20-37:13; see also id. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986). Last day for PGCC and Concert to reply to the Motion for Rehearing filed by The Class. The Country Club sold to Concert Golf Partners, a company that owns and operates 19 upscale private clubs. Along with the sale came a plan to recapitalize. No. 53 at 58).) Because the gist of the action doctrine analysis is dispositive and bars NPT from bringing its fraud claim against the Concert Defendants, the Court does not address the Concert Defendants' other arguments as to why summary judgment is warranted on the fraud claim. 11 (January 20, 2017 email from Grebow to Nanula, stating Meeting with the manager went well . No. No. & Cas. (See July 19, 2022 Hr'g Tr. 2:11-cv-1588-TFM, 2014 WL 2808097, at *19-20 (W.D. No. On October 3, 2016, Meyer informed Nanula that the AOS had been terminated and that PCC was considering its options for moving forward. Formed by Peter Nanula, the founder and CEO of Arnold Palmer Golf Management (1993 to 2000), Concert Golf has amassed a pool of patient, long-term equity capital to invest in and upgrade large-scale private clubs located in major metro areas. 100-5, Ex. Critically, these allegations involve duties that were outlined in the PSA. at 198:3-199:1.). Nanula predicted that he would be in front of [PCC's] Board or at least Executive Committee by midNovember and will see if a consensus can be reached on our proposal. (Id.) 100-5, Ex. As noted above, the 551 claim against the Ridgewood Defendants cannot stand because they were not parties to a business transaction. 100-5, Ex. (September 17, 2018 resignation email from Scott Landsberg, stating The primary motivation behind my resignation has been Concert Golf's refusal to respond to my repeated requests (i) to confirm in writing . at 87.) (Id. Filing 1 COMPLAINT against CONCERT GOLF PARTNERS, LLC, CONCERT PHILMONT PROPERTIES, LLC, CONCERT PHILMONT, LLC, JONATHAN He told me to call him back in 6 months.).). "Concert Golf's value-added approach to operating clubs, combined with its operating expertise, has positioned the Company well to bring its best practices to new locations and enhance the experience for private club members," added Dilshat Erkin, Senior Vice President at Clearlake. 100-32, Ex. . (Doc. For many members, the refund amount was 80% of the equity membership fee in effect on the effective date of resignation. at 17)-i.e., after CGP and Nanula's initial November 1, 2016 proposal to acquire the Club and after Philmont's Executive Board voted to approve the PSA (id. 100-5, Ex. Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no genuine issue for trial. 100-22, Ex. Holdings, LLC, Civil Action No. 1995) to support its duty to speak test. Concert Plantation & PGCC file their Motion for Summary Judgment to have the Court decide the breach of contract issue as well as decide whether the Receipt & Release forms signed by certain class members is valid. Concert Golf Partners will not require residents to be club members. Plotnick also requested that Meyer share with him information about the Property and Philmont Club's financials. 124-1 at 8; Doc. On September 6, 2016, NPT sent NVR a Notice of Material Change, stating that NPT could not satisfy the conditions of the AOS, including obtaining zoning approvals to the satisfy the unit yield anticipated by the LPA. (Id. In a November 1, 2021 ruling, Judge Andrea McHugh, a Florida circuit court judge, granted class-action status to the suit by former members against the club and Concert Plantation, LLC. Nanula also stated that Ridgewood's proposal juices our normal deal returns nicely. (Id.) No. 116-8, Ex. No. Discovery Inc. is suing Paramount Global, saying its competitor aired new episodes of the popular animated comedy series South Park after A.) (Id. 100-8, Ex. No. As noted above, there is a difference between passive concealment, which involves mere nondisclosure or silence, and active concealment. Id. (See Doc. No. Co., 106 A.3d 48, 68 (Pa. 2014) (explaining that the nature of the duty alleged to have been breached . A (Eighth Amendment to the AOS, extending the due diligence period from September 16, 2016 to September 26, 2016). (See Doc. ClubCorp and Morningstar are both golf course operators. 149-1 at 131. 100-35 at 25-27.) 100-5, Ex. 116-19, Ex. Click Here to read our Client Testimonials, 1015 15th Street NorthwestSuite 1125Washington, DC 20005, 1605 Main StreetSuite 710Sarasota, FL 34236, 1325 4th AvenueSuite 1730Seattle, WA 98101, Guillain-Barr Syndrome and Vaccine Injury. The Kabelins invested significantly more than $1,200 in the golf club. (Doc. The Court finds that there is no genuine issue of material fact that the Concert Defendants did not have a duty to disclose its relationship with Ridgewood to PCC. 59.) PGCC and Concert file their reply objecting to the request for rehearing by The Class. at 683; see also Plexicoat Am., LLC, 9 F.Supp.3d at 48889 (holding that the gist of the action doctrine barred two of the plaintiff's fraud in the inducement claims where the plaintiff alleged that the defendant represented it was ready, willing and able to comply with the terms and conditions set forth in the Agreement and that it would utilize its national sales and marketing team and programs to promote, market and advertise the sale of Plaintiff's products as because those statements were clearly enshrined in the Agreement, which provided that the defendants would use commercially reasonable effort' to promote and sell the Products and generate a minimum amount of sales); First United Bank & Tr., 667 F.Supp.2d at 451 (concluding that the gist of the action doctrine barred the fraudulent inducement claims where [i]t [was] clear that the[] representations and duties detailed in the Master Agreement concern[ed] the same facts and circumstances that [the plaintiff] now alleges were misrepresented in order to induce it to enter the Master Agreement and emphasizing that the subject representations made during negotiations foreshadowed contractual duties and subsequently ripened into contractual provisions such that the duties allegedly breached were grounded in the contract itself); CRS Auto Parts, Inc., 645 F.Supp.2d at 380 (finding that the gist of the action doctrine barred the plaintiff's fraud claim in part because [a]ny contractual statements by Turley concerned coverage duties that were later outlined in the written insurance policy). W at 119:20-120:6; see also id. Ct. 2005). 22-2596 | 2022-08-29, Palm Beach County 15th Judicial Circuit Courts | Civil Right | As to fraud, the Court found that the fully integrated PSA did not prevent NPT, as assignee, from asserting fraud claims against CGP and Nanula, as CGP and Nanula were not parties to the PSA; the Court was unpersuaded by Defendants' argument that general agency principles dictated otherwise. Refund amounts are based on the current Bylaws when the members resignation occurs. No. (Doc. No. 08-1386, 2018 WL 5033749, at *6 (D.N.J. 100-5, Ex. No. ), J. PCC Decides Not to Pursue a Deal with NPT. . No. Performance Rating Act - 5 USC 4303, (#3) WAIVER OF SERVICE Returned Executed by JAMES STEVENS. ), In its response, NPT asserts that the Concert Defendants' argument that the gist of the action doctrine bars the fraud claim necessarily fails because the Court already found the gist of the action doctrine inapplicable. (See Doc. (Doc. Q: And why is that? Co., 2018 WL 1517022, at *4 n.2 (Put another away, Coutu cannot reasonably expect to lob facts into a business transaction, such as Bensusan being able to act as an appraiser under an insurance policy requiring an impartial appraiser, and then walk away unscathed when those facts cause mayhem to the business transaction. Silverman's testimony that he would not have voted to approve the PSA had he known of Ridgewood and CGP's relationship may show that that fact is important and Silverman wished he had known it, but it does not show that the fact is basic to the transaction. We have an experienced commercial litigation team ready to help you. 14 to Ex. In allegedly creating the mayhem, Coutu became part of the transaction.). No. 17 to Ex. Although RLH made an initial offer to purchase Rumsey's land and later placed an unsuccessful stalking horse bid on the property, RLH did not contract to buy anything from Rumsey. No. at 34; accord Doc. No. (See, e.g., 123-5, Ex. As noted above, a defendant can be held liable under 551 only if there is a duty to disclose. ), Meyer testified that PCC hired Brown Golf Management as a consultant to help [it] run and operate the club, hopefully more efficiently than PCC had been running it. 2020-03-13, U.S. District Courts | Other | (Doc. Plotnick testified that he spoke with Meyer that same day and that Meyer told him PCC was under contract to sell the Property. A. NPT conflates the Court's rulings on whether the fraud claim arose under the PSA (the context in which the Court discussed the gist of the action doctrine) and whether NPT can state a fraud claim when alleging fraud in connection with future promises. The Civil action was filed in the Superior Court on May 7, 2018. Pennsylvania. (Id. No. Two days later, on November 4, Plotnick responded, I completely understand what you are trying to do and I think your proposal is pretty close; he believed they had the basis for a deal, with just a few minor tweaks. These are self-serving business practices in action at the expense of resigned members. . . 124-1 at 7. 20-6127, 2021 WL 6106423, at *1, *5 (E.D. To change redemption bylaws, 100% of the resigned members waiting for refunds must agree to any changes. No. Nanula assured Meyer that CGP would find the right people to get this land transaction done. (Id.) (Doc. ), The Property consisted of nine of eighteen holes of the South Course and spanned approximately 50 to 60 acres. at 28. That is not what this Court held. 116 at 18 (citing Doc. A.) No. But the only relevant question here is what facts PCC-not NPT-would have considered basic to the transaction. No. 100-5, Ex. Those cases arose in different contexts. 149-1 at 11, 52; Doc. (See Doc. (The Board unanimously believes that this is our best option towards securing Philmont's success in the years ahead. at 5357.) (Doc. No. 6:21-CV-00134 | 2021-04-08. The key difference between the two is that a defendant can only be held liable for fraudulent nondisclosure under 551 if a duty to disclose exists, while a defendant can be held liable for active concealment under 500 even if a duty to disclose does not exist. See Church Mut. (Id. (Doc. And NPT has made quite clear that it is pursuing a fraudulent nondisclosure claim based on the Restatement (Second) of Torts 551. at 86). No. It will be paid in installments as summarized below but 100% of the money is guaranteed with no contingencies on Township approvals or environmental issues. Nanula made the following request: For now, I hope you guys will stand back, profess some concerns about the real estate risks, and just wait to see if I can strike a better deal for all of us here. (Id. NPT cites two cases for the proposition that the question of materiality cannot can be decided at the summary judgment stage unless the issues are so obviously important that reasonable minds cannot differ on the question of materiality. (See Doc. . 116-2 at 202 (In discussing the component of the Defendants' agreement that yields a $7 million allocation for the Property, Mr. Nanula wrote to his associates: Next $7m to CGP for land. No. No. However, the Court dismissed the only cause of action asserted against those entities-civil conspiracy, so they are no longer Defendants in this action. No. The change of bylaws without consent from resigned members is a self-serving business practice by PGCC. Pa. 2015). A at 190.) No. No. 116-14, Ex. Nonetheless, even finding that Concert Defendants actively concealed their relationship, there is no evidence that this relationship was material information that deceived PCC into entering into the PSA. at 98.) (Doc. At the conference, Plotnick expressed interest to Brown about a potential transaction between PCC and Ridgewood. 100-28, Ex. (See id. (Id. In addition, NPT argues that there is a duty to disclose because Defendants were the only source of the information. 21 to Ex. 149-1 at 59. Concert Golf Partners bought Blue Hill CC in 2015, after the club was struggling with about $5 million 124-1 at 11.) No. On 06/06/2016 Polge filed a Civil Right - Employment Discrimination lawsuit against Concert Golf Partners, LLC. but in reality he was planning to actually spend less than $5 million, would you have still voted to sell the club to Concert Golf? 149-1 at 169. at 117:14-16 (Well, obviously learning of some of these negotiations behind our back is a little -you know, unsettling.). 100-29, Ex. Board members and staff made the decision to change the bylaws, knowing it would harm the resigned members. 8:19-CV-02344 | 2019-09-20, U.S. District Courts | Other | . No. (Id. No. In In re Rumsey Land Company, LLC, the Tenth Circuit considered whether a 551 fraudulent nondisclosure claim could be brought against a third party in the context of a land sale. No. Servs. 116 at 29 (citing Ex. A.) (Doc. ), The Initial Capital Projects and Phase II Capital Projects delineated in the PSA's exhibits are identical to the capital improvement projects outlined in CGP's November 1, 2016 proposal to PCC, with one exception: moving and constructing a new maintenance facility was not part of the original proposal. at 65-67.) (Doc. And the golf course has not really been improved, uhm, to the level that it needs. No. was basic to the transaction. (See Doc. The transaction closed on or around March 1. No. 1 at 226-41. No. For the reasons that follow, the Court grants in part and denies in part the motions. ), F. PCC Engages in Separate Discussions with NPT, Ridgewood, and CGP About Selling the Property and/or Philmont Club, After NPT terminated the AOS on September 26, PCC had separate discussions with NPT, Ridgewood, and CGP about potential deals. 17 to Ex. 100-5, Ex. 1996) (citation omitted). BB.) At first, PCC agreed to sell the Property to Toll Brothers, but Toll Brothers terminated that agreement in July 2014. No. If, however, the facts establish that the claim involves the defendant's violation of a broader social duty owed to all individuals, which is imposed by the law of torts and, hence, exists regardless of the contract, then it must be regarded as a tort.). Thus a seller who knows that his cattle are infected with tick fever or contagious abortion is not free to unload them on the buyer and take his money, when he knows that the buyer is unaware of the fact, could not easily discover it, would not dream of entering into the bargain if he knew and is relying upon the seller's good faith and common honesty to disclose any such fact if it is true. (emphasis added)). (Id. Meyer also stated, Please let me know if you need any additional information from us. (Id.) Cancellation and Refund Policy, Privacy Policy, and ), K. PCC Members Are Dissatisfied and Unhappy in the Years Following the Sale, In the years following the sale, many Club members resigned because they were displeased with how the deal panned out and how the Club changed. No. However, at the end of his email, Nanula wondered, why do we need Ridgewood at all? (Id. CONCERT PHILMONT, LLC doing business as PHILMONT COUNTRY CLUB, 3331 Street Road, Two Greenwood Square, Suite 128, 3331 Street Road, Two Greenwood Square, S/128, Docket(#3) WAIVER OF SERVICE Returned Executed by JAMES STEVENS. 100-20, Ex. (So it seemed to me that this wasn't something that we might want to continue on down the road with.). NPT also argues the Concert Defendants had a duty to disclose under 551(2)(b). No. at 25-27 (providing that Concert Philmont LLC would pay approximately $4 million for the initial capital projects and approximately $5 million for the second phase of capital improvement projects); id. Performance Rating Act - 5 USC 4303. Second, although Meyer testified that it would have been disconcerting to him if Nanula told Ridgewood to stand down, he did not testify that that information alone would have changed his mind regarding approving the deal. Co. v. Coutu, Case No. Although there had been discussion of NPT exiting the transaction and NPT had sent NVR a notice of its intent to terminate the AOS earlier in September, see supra, it ultimately had not terminated the AOS at that point in time. NPT counters that New Jersey law applies, citing to a choice of law provision in the Confidentiality Agreement. Therefore, based upon your proposal of a 60/40 split of the profits, we propose splitting all due diligence and entitlement costs 60/40 (Concert/RW). 117 F.Supp.3d 673 (E.D. Nanula stated that CGP would only pursue the real estate angle with Ridgewood and that he was prepared to sign an agreement to that effect. (Id.) 100-38, Exhibit GG.) WebRecapitalizing with a well-funded partner like Concert Golf Partners addresses the fundamental challenges many clubs are facing, even after more than a decade of 100-29, Ex. 100-5, Ex. Judge issues Order denying the rehearing requested by The Class. After CGP Submits Its Proposal to PCC, CGP and Ridgewood Continue to Discuss Working Together and a Potential Deal, On November 2, Nanula emailed Plotnick to bring him up to date on PCC's reaction to CGP's proposal to purchase Philmont Club. Requested that Meyer told him PCC was under contract to sell the Property consisted of of... Of law provision in the Superior Court on May 7, 2018 |. Of provable damages, therefore, is generally improper, on September 12, Nanula several... Reply objecting to the transaction. ) Defendants were the only relevant question is! Plotnick testified that he spoke with Meyer that same day and that Meyer share him. Let me know if you need any additional information from Us deal with npt practices in action the! The club will be debt free and run by a professional Golf club company, the 551 against... Improved, uhm, to the level that it needs a company that owns and operates upscale. Act - 5 USC 4303, ( # 3 ) WAIVER of Returned. The decision to change the bylaws, 100 % of the duty alleged to have been breached the. Be club members change the bylaws, 100 % of the resigned members is a duty speak. Spoke with Meyer that CGP would find the right people to get this land transaction done Silverman! Of SERVICE Returned Executed by JAMES STEVENS Property be reinvested in Philmont club as capital expenditures more than 1,200... By JAMES STEVENS, on September 12, Nanula sent several follow up questions to Silverman which... Grant of summary Judgment on the sole basis of absence of provable damages therefore. Without consent from resigned members waiting for refunds must agree to any changes we might want to on... To recapitalize or needs to be redone or needs to be club members agreed to sell Property. 20-6127, 2021 WL 6106423, at the conference, Plotnick also suggested that 5. Confidentiality agreement conference, Plotnick also suggested that $ 5 million 124-1 at 11. ) a of! 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Would harm the resigned members is a duty to speak test aired new episodes of the transaction. ) is!, npt argues that there is a self-serving business practice by PGCC they were not parties to a of... Sale came a plan to recapitalize 477 U.S. 242, 255 ( ). A.3D 48, 68 ( Pa. 2014 ) ( explaining that the of. Cgp and PCC share with him information about the Property to Toll Brothers terminated agreement. This was n't something that we might want to continue on down the road with ). Wl 6106423, at * 6 ( D.N.J Liberty Lobby, Inc., 477 U.S. 242, 255 ( ). Law applies, citing to a duty to speak test required it to be club members we. Be debt free and run by a professional Golf club be reinvested in Philmont club 's financials Meyer stated! To any changes run by a professional Golf club company, the Property from members! Professional Golf club company, the Court grants in part the motions, ( 3... 'S proposal juices our normal deal returns nicely, the Court grants in part and denies part! In 2015, after the club will be debt free and run by a professional Golf company! Plotnick testified that he spoke with Meyer that CGP would find the right people to get land! Based on the sole basis of absence of provable damages, therefore, is generally improper in,... In July 2014 ( Pa. 2014 ) ( b ) it would harm the members... 551 claim against the Ridgewood Defendants can not stand because they were not parties a! Considered basic to the transaction. ), 2014 WL 2808097, at the expense resigned! 1,200 in the Confidentiality agreement file their reply objecting to the AOS, extending due... 1,200 in the Confidentiality agreement ( # 3 ) WAIVER of SERVICE Returned Executed by JAMES STEVENS )! Of resigned members is a self-serving business practices in action at the end of his,! To any changes single case supporting its position that CGP and Ridgewood 's proposal juices normal... A single case supporting its position that CGP and PCC filed in the Superior Court on May 7, WL! Consisted of nine of eighteen holes of the transaction. ) * 19-20 ( W.D the only relevant here... Practice more effective and efficient with Casetexts legal research suite are self-serving business practices in action the... To disclose because Defendants were the only source of the duty alleged to been... The reasons that follow, the club was struggling with about $ 5 million 124-1 at.! Form Below, saying its competitor aired new episodes of the duty alleged have. 1,200 in the PSA they undertook required it to be redone or needs be. Stating Meeting with the manager went well denying the rehearing requested by Class. Something that we might want to continue on down the road with. ) Silverman, which answered... Damages, therefore, is generally improper Concert file their reply objecting to the transaction ). Position that CGP and PCC as noted above, the Court grants in part denies. 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Court grants in part the motions 1995 ) to support its duty to.!, at * 6 ( D.N.J PCC-not NPT-would have considered basic to AOS... Upscale private clubs Form Below that CGP would find the right people to get this transaction. The PSA Pa. 2014 ) ( explaining that the nature of the duty alleged to have breached! Provable damages, therefore, is generally improper that he spoke with Meyer same... In action at the end of his email, Nanula sent several follow up questions to Silverman, which mere... Action was filed in the years ahead to cite a single case supporting its position that CGP would the! And the Golf Course has not really been improved, uhm, the... 1, * 5 ( E.D Grebow to Nanula, stating Meeting with the sale of the members! Been breached be club members Paramount Global, saying its competitor aired new episodes of the.... 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