Plantation Golf and Country Club Equity Membership Lawsuits
Refund Checks Fraction of Original Amounts Due
Plantation Golf and Country Club is governed through bylaws established when the club first opened. When resigning from a PGCC membership, members go on a waiting list to get refunds. However, it may take years before a resigned member actually gets their check. Refund amounts are a percentage of the original price paid for the membership, determined at the time a member resigns. In the bylaws, up until recently, it stated that this refund amount was 80% of the original amount paid for the membership.
MCT Law’s Lead Case Complaint Against Plantation Golf and Country Club.
Recently paid refunds are NOWHERE NEAR the originally promised 80%. The change of bylaws without consent from resigned members is a self-serving business practice by PGCC.
Concert Golf Partners Buys Plantation Golf and Country Club
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. Tom Kubik, the president of Plantation Golf and Country Club, told the Venice Gondolier Sun that “in addition to the reinvestment program, CGP will immediately redeem all resigned member equity, exchanging current member equity redemption rights for those improvements.” The full article about the sale of PGCC is available here.
In other words, refund plans for resigned members are moving forward even with the sale of the country club. However, the amounts of the refunds are not discussed in the article.
Are You on the PGCC Equity Membership Refund Waiting List? Did You Get the Wrong Refund Amount?
Self Serving Business Practices and Harm to Resigned Members
According to the June 4th, 2013 PGCC legal committee meeting minutes, board and staff members question attorneys about the equity membership refunds. A copy of the meeting notes is available by clicking on the document to the right.
At the time of the meeting, the country club listed over 500 pending resigned members awaiting redemptions. So, this means that over 500 people are affected by the decision to change equity membership refund amounts, without giving proper notice or the opportunity to be heard.
To change redemption bylaws, 100% of the resigned members waiting on refunds must agree to any changes. However, board members changed the redemption ‘formula’ in the bylaws against attorney advice. The new amount is a fraction of the refund resigned members are entitled to at the time of resignation. Even more, this change came with no consent from resigned members waiting on their redemption.
Board members and staff made the decision to change the bylaws, knowing it would harm the resigned members. However, the amount of money the club saves from lowering refund amounts greatly outweighs the amount they have to pay in a few lawsuits over the refunds. So, the country club chose profit over people. These are self-serving business practices in action at the expense of resigned members.
Consequently, the minutes of this meeting prove the board members and legal committee were aware of the Self Serving Business Practices in use when changing redemption bylaws without consent.
PGCC Changes Refund Amount – Against Attorney Advice
There are 6 ‘classes’ of equity memberships at PGCC. In terms of voting rights, class-1 members receive 6 votes while class-6 members receive just 1 vote, respectively. Memberships are also broken down into types – golf, tennis, and social memberships. There are varying costs to each of these types and classes; for example, a class-1 membership costs $30,000.
An equity membership, explained by a PGCC attorney, is similar to stock. “Once one owns the stock, its value is subject to daily fluctuation with the market. Similarly, the value of an equity golf share is driven by market factors.”
“If an obligation does exist to resigned members, can existing members change the bylaws to eliminate the obligation that exists to resigned members? Or declare bankruptcy to recapitalize? Or renegotiate?” These questions asked during the PGCC legal committee meeting are due to market fluctuation that changes the value of equity memberships in the club.
Lawyers advise that changing the bylaws would only affect the current holders of equity memberships, who haven’t resigned. The only way the changes affect current resigned members that are waiting on their refund is if there is 100% consent from these resigned members. However, if the members do not receive consent from the current resigned members, it leads to the risk of legal action against the club. PGCC did NOT receive 100% consent from resigned members. In fact, the majority, if not all, NEVER received any communication from the club.
mctlaw is Actively Litigating Resigned Equity Membership Cases on Behalf of Our Clients
MCT Law fights for you to get the correct refund amount from Plantation Golf and Country Club. Talk to our attorneys about your refund even if you already received a redemption check for an incorrect amount, or you’re awaiting a redemption check,
Attorneys at MCT Law believe you deserve the amount originally and contractually promised when you purchased an equity membership. We have an experienced commercial litigation team ready to help you. To get in contact, fill out a form below, or call 888.952.5242.
Plantation Golf And Country Club
PGCC is a private country club located in Venice, Florida. Private clubs allow only members and their guests to use club facilities and are not open to the general public. Limited numbers of golf and social memberships are available at PGCC, and these memberships come with equity, or ownership, in the club. In turn, this allows the club members to take part in the club’s short and long term decisions.
Members purchase different types of membership at different costs, dependent on which type of membership they desire. Each membership has a different level of equity attached. However, if a member decides to cancel their membership, or ‘resign,’ they are placed at the bottom of a waiting list to receive refunds. Refunds are an amount of money given back to them after canceling a membership. According to a ‘formula’ in the bylaws, this amounts to 80% of the original purchase price of the equity membership. As the country club gains sufficient profit to accomplish a redemption, they pay the member who is at the top of the waiting list. Resigned members expect to wait years to move to the top of the waiting list to receive redemption. This information is outlined in the bylaws of PGCC.