March 28, 2024

7-Count Lawsuit Filed by Members Against Metacomet Owners

Breach of Contract, Fraud, Contract Interference Alleged...

Posted

The EP Reporter has been told that several members of the Metacomet Golf Club have filed a 7-count lawsuit against the Metacomet Golf Course. Plaintiffs listed in the lawsuit are Plaintiff, Joseph J. Rodgers III, Kekin A. Shah, William G. Cioffi, Dean E. Martins and Mark P. Welch, Louis Freselone, Scott Desilets and Jason Kalin.

The suit was filed in Rhode Island Superior Court. Defendants are listed as Metacomet Property Company, LLCROPERTY COMPANY, LLC, doing business as Metacomet Golf Club; and J.L. Marshall & Sons, INC.

Part of the lawsuit states in part, “On or about November 18, 2019, MPC convened, and conducted a so-called “town hall” style meeting of the dues paying members of the Club, which included the Members, in order to “unveil”, describe and/or delineate and otherwise set forth MPC’s operational plans, parameters and amenities relative to the Club for the 2020 golf year, which commenced in or about January, 2020 (the “Meeting”). At the Meeting, the five (5) Members of MPC, to wit, Steve Napoli, Karl Augenstein, Brad Faxon, Jr., Tim Fay, and Brandon VanDeventer (the “Principals”) were present and participated either in person or via telephone conference.”

The claim further stated that, “The Principals undertook, and gave a visual and audio presentation to the dues paying members of the Club, including the Members, describing in detail the intended golf operations for the Club for the 2020 golf year, which included, among other things, the costs and expenses to be incurred by the Members and other dues paying members should any remain at the Club beyond January 1, 2020, the golf course and tournament schedule for the Club, specific improvements to be made to the Property, including the golf course, and other operation intentions, plans and/or parameters for the Club for the 2020 golf year.”

Even more, the November 27th Correspondence expressly stated that should any dues paying member of the Club, including the Members, desire to remain a member in good standing at the Club through December 31, 2020, then he or she would be required to remit and pay to the Club the annual fee or assessment of Three Thousand Eight Hundred and 00/100 Dollars ($3,800.00) pursuant to the payment terms set forth at the Meeting, and as prescribed in the November 27th Correspondence.

In reasonable reliance, and based upon MPC’s presentation at the Meeting, as well as its November 27th Correspondence, none of the Members resigned from the Club, and, in fact, each paid in full the required Three Thousand Eight Hundred and 00/100 Dollars ($3,800.00) 2020 annual dues for their continued Club memberships.

Without any prior notice, on or about February 20, 2020, MPC advised the Members, as well as the other dues paying members of the Club that it was engaged in negotiations to sell the Property to a third party. At that time, MPC failed and/or refused to advise the Club members that it intended to sell the Property for a proposed mixed-use development, and, further, that it would be ceasing operations at some point early into the 2020 golf season...”

On or about February 27, 2020, MPC provided notice to the Members, as well as the other dues paying members of the Club that it had entered into a purchase and sale agreement with Marshall for the sale of the Property. Further, as part of said notification, MPC advised the Members, as well as the other members of the Club that it anticipated the winding down and ceasing operations at the golf course following the closing upon the purchase and sale of the Property, which was anticipated to occur in or about June, 2020.

At or about the same time, Marshall released a media statement confirming that it was the prospective acquiring party of the Property, that it had, in fact, entered into a purchase and sale agreement for the Property with MPC, and that it intended to develop the Property as a mixed-use development, and did not intend to operate the Club.

The 7 counts listed are:

Count I - Declaratory Judgment & Injunctive Relief
Count II - Breach of Contract
Count III - Breach of Duty of Good Faith & Fair Dealing
Count IV – Misrepresentation
Count V - Fraud
Count VI - Unjust Enrichment
Count VII - Tortious Interference with Contract

The members are represented by the law office of Christopher M. Mulhearn, Inc. of West Warwick.

Read the complaint here

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  • ShirleyBGohner

    This whole thing stinks! The scenario sounds very much like a golf club I was a member at in Orange County, California.

    The land was zoned "Open Space" and a developer bought it. The developer threatened to close the club if he was not allowed to build homes & condos on 9 holes of the 27 hole private club.

    Members fought back and we were able to block the development and the club exists today as it was.

    Anyone interested can connect with me for further details. Pretty amazing story!

    ShirleyB

    Friday, March 20, 2020 Report this

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