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During the transition period, VCI, not VRI, was responsible
for decisions and costs of any further improvements made to the
Golf Course and to the Clubhouse.
Up until July 19, 1996, the day the Golf Course and the
Clubhouse opened, all property-related insurance relating to the
Golf Course and the Clubhouse was paid by VRI. After July 19,
1996, VCI paid all property-related insurance relating to the
Golf Course and the Clubhouse.
Under the Contract, any increase or decrease in the
underlying fair market value of the Golf Course and the Clubhouse
that occurred during the transition period, would accrue, not to
VRI, but to VCI.
In 1997, because of potential conflicts of interest between
VRI and the board of directors of VRI, some members of the Club,
individually and on behalf of VCI, filed a lawsuit against VRI
and the individual owners of VRI (namely, petitioners). One of
the issues in the lawsuit involved the validity of the Contract.
On April 21, 1999, VRI, petitioners, VCI, and members of VCI
arrived at a comprehensive settlement of the above lawsuit.
Pursuant to the settlement, on April 21, 1999, VRI turned over to
VCI operation and management of the Golf Course and the
Clubhouse, and the deed and legal title to the Golf Course and
the Clubhouse were transferred out of escrow to VCI.
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Last modified: May 25, 2011