HLP attorneys (Kevin Hudson and Zack Hall) secured a summary judgment victory for client Grand Harbor Golf & Beach Club, LLC, resulting in dismissal of the case on the eve of trial.
Grand Harbor is a non-profit company that owns and operates a golf and beach club in Vero Beach Florida on behalf of the club’s members. The members have run the club since 2020, when the club’s developer decided to turn over the club’s facilities and other assets to the members. Following that transfer, two companies who claimed that they were creditors of the developer—Icahn Enterprise Holdings and American Entertainment Properties— sued Grand Harbor, claiming that the transfer was fraudulent because the developer was insolvent at the time it transferred its assets to the club, and was thus unable to pay its debts to Plaintiffs. Plaintiffs sought to recover $28 million in damages from Grand Harbor, which they claimed was the amount the developer owed to them.
At the close of discovery, HLP moved for summary judgment on behalf of the Club, arguing among other things that Plaintiffs were aware of and consented to the transfer at the time, and were thus estopped from arguing that it was fraudulent. On the eve of trial, the Court granted Grand Harbor’s motion in full and dismissed Plaintiffs’ claims with prejudice. This was a complete victory for HLP’s client, which avoided a potential $28 million judgment.
