When a Condo Hotel Implosion Appears Imminent, What Can be Done?
By Irvin W. Sandman
September 1, 2007
In February 2006, we warned that some borderline and even ill-advised condo hotel projects were being pursued. We asked, if a borderline project is built, how can the owners’ association or the developer (if he is still in the game) help avert an implosion? See “Condo Hotels: How Developers and Owners’ Associations Can Avert a Hotel Implosion,” Condominium-Hotel Development: Beware the Securities Law Minefield”.
The warnings from February 2006 now appear to have been warranted. Several significant condo hotel projects are in danger of devolving into litigation. A very recent, prominent example is the Signature at MGM Grand in Las Vegas. On August 27, 2007, thirty-three owners of units in that condo hotel filed a complaint in Clark County Nevada against Turnberry/MGM Grand Towers, LLC. The complaint alleges causes of action for State securities laws violations, fraudulent misrepresentation, negligent misrepresentation, fraud in the inducement, and fraudulent concealment. The complaint seeks rescission, as well as other remedies.
The content of our earlier “Implosion” article now finds a more urgent context. Our analysis is reprinted below and applies today with continuing force.
To continue reading the full article, please view the attached document; When a Condo Hotel Implosion Appears Imminent, What Can be Done?
