Providing a Winning Strategy for a Beleaguered Country Club

Our client, a real estate investment firm, was the owner of a country club located in Palm Desert, California. The adjacent/adjoining 900+ unit homeowner’s association initiated litigation against our client for various breaches of the covenants, conditions and restrictions, including claims that our client was not maintaining the country club according to “industry standards.” The maintenance demanded by the homeowner’s association would have rendered the country club economically unviable for our clients, so this litigation was essentially a bet-the-company dispute.

After multiple years of hard-fought and contentious litigation, we managed to negotiate a full resolution of the dispute that included the sale of the country club to the homeowner’s association. Our client was already looking at opportunities to sell, and the ability to sell to the homeowner’s association proved to be an elegant solution to a complex problem.