Judge Richard Boulware gave Desert Lifestyles LLC until December 30 to turn over all communication related to its recent sale of the Las Vegas property or face daily fines of $10,000. Homeowners filed a lawsuit against Desert Lifestyles after it purchased the property on September 1, shut down the club and course and turned off the water. Desert Lifestyles said it sold the club to Stoneridge Parkway LLC near the end of December, but Stoneridge Parkway then filed for bankruptcy two days later.
A federal judge held the former owner of Silverstone Golf Club in Las Vegas, Nev. in contempt of court on December 28, the Las Vegas Review-Journal reported, for failing to turn over all communication related to its recent sale of the property.
U.S. District Judge Richard Boulware gave the former owner, Desert Lifestyles LLC, until Wednesday, December 30, to comply with his order or face daily fines of $10,000, the Review-Journal reported.
“They will comply, and they’ll have two days to do it, or they’ll be sanctioned for it,” the judge told attorney Ross Goodman, who represents the company.
Homeowners filed a lawsuit against Desert Lifestyles after the California-based company, which purchased the property on September 1, shut down the golf club and turned off the water, the Review-Journal reported.
C&RB reported on the clashes between the residents and owners of Silverstone GC in September (http://clubandresortbusiness.com/2015/09/09/rowdy-residents-stand-up-to-silverstone-gc-sale/) and on a subsequent legal ruling in November, when Boulware issued a preliminary injunction that forced Desert Lifestyles to restore the property to the condition it was in when it was sold and shuttered. (http://clubandresortbusiness.com/2015/11/05/nevada-california-judges-mandate-care-for-idle-golf-courses/),
In the week before Judge Boulware’s order, the Review-Journal reported, the company notified the plaintiffs in the lawsuit that it had sold the golf course to Stoneridge Parkway LLC. Judge Boulware then ordered Desert Lifestyles, as the defendants in the lawsuit, to produce all communication with Stoneridge, which filed for bankruptcy later that week, or any other prospective buyers regarding the sale of the golf course property. He allowed the defendants to produce the material under seal.
At the hearing on December 28, which drew about three dozen spectators, the judge told Goodman to emphasize to his client that “the court is not satisfied with the current production,” the Review-Journal reported.
“Your client appears to have engaged at times in a regular disregard of the court’s orders,” Boulware said.
If no other correspondence is produced by December 30, the judge said, another Desert Lifestyles attorney, Ronald Richards, should be prepared to testify under oath that none exists. Boulware denied a request by Goodman to allow Richards, who practices in California, to give such testimony privately.
“He’s going to take the stand publicly, and he’s going to say what he does or doesn’t have,” the judge said.
On December 28, Boulware said his November injunction is no longer enforceable against Desert Lifestyles, the Review-Journal reported. And Stoneridge’s decision to seek Chapter 11 protection placed an automatic stay on actions related to the golf course property.
Boulware said it is unusual for an entity to make a large purchase and then immediately file for bankruptcy, the Review-Journal reported.
Attorney Richard Haskin, who represents the Silverstone Ranch Community Association, told the Review-Journal that his clients believe the bankruptcy filing is fraudulent. Timothy Elson, another attorney for the association, said the association plans to pursue remedies in bankruptcy court, the Review-Journal reported.
Elson also said that he does not know whether the course is currently being watered.
The Review-Journal reported that its attempts to reach Stoneridge attorney Matthew Abbasi for comment were unsuccessful.
Boulware has scheduled a hearing for January 7 on a motion for sanctions against Desert Lifestyles for failing to comply with his injunction, the Review-Journal reported. Haskin said the judge should award sanctions equal to the cost of restoring the golf course.