MGM failed to act in good faith and misled the purchasers to believe that by the terms of the Purchase Agreement they would be buying units that were part of a democratically run Common-Interest Community
Las Vegas (PRWEB) February 07, 2012
On February 3, 2012, the law firms of Blumenthal, Nordrehaug & Bhowmik and Gerard & Associates filed a second amended complaint in arbitration alleging that MGM defrauded investors into purchasing units in the MGM Signature Suites at the MGM Grand in Las Vegas. Sussex v. Turnberry/MGM, Case No. 1115185809 is currently pending in the United States District Court for the District of Nevada along with Abraham v. Turnberry/MGM, Case No. 2:11-CV-01007.
The new documents filed allege MGM failed to act in good faith and misled the purchasers to believe that by the terms of the Purchase Agreement they would be buying units that were part of a democratically run Common-Interest Community where the unit owners had a say in the costs and expenses they would be charged and the use of the pool area. Allegedly, MGM has denied the purchasers these unique real property rights that should be specifically enforceable as part of the Purchase Agreement. The complaint further states MGM relied on the CC&Rs which gave MGM the right to operate the Common-Interest Community as an autocracy with absolute control over the budget, costs, expenses, common area revenues and use of the pool area. The recently filed complaint further proffers that as a result the unit owners have been ordered to pay all the cost of the Common-Interest Community including taxes and receive none of the benefits from the income derived therefrom. The complaint asks the arbitrator to declare in accordance with Nevada law that the CC&Rs are unenforceable as unconscionable and enjoin further enforcement of the CC&Rs in a manner inconsistent with the terms contained in the four corners of the Purchase Agreement.
Specifically, the complaint seeks an accounting and damages as to past acts and to enjoin any further operation of the “Wet Republic” without the affirmative vote of a majority of the unit owners, and the removal of parts of the “Wet Republic” constructed on the hotel’s easement. The complaint alleges noise from the music at the “Wet Republic” is so loud that the windows of the units rattle and the floors shake further driving down room rates.
The new complaint also charges that when members of the MGM sales force discovered that the projected 60/40 revenue split of profits derived from the investment in favor of unit owners, that they were telling the unit owners they would receive, was more like 30/70 in favor of MGM, the sales force was told by MGM not to tell anyone the true facts.
For more information, visit the MGM Signature lawsuit website or call (866) 811-2122.
The employment lawyers at Blumenthal, Nordrehaug & Bhowmik focus on representing employees, consumers and investors on a contingency fee basis in actions against public companies for unlawful, unfair and deceptive business practices and policies. For a free consultation call (800) 568-8020.