Parent company of Big Sky Resort to pay almost $25 million in class-action lawsuit settlement
Boyne USA, the company that is the owner of Big Sky Resort among several other ski areas in North America, recently agreed to settle a class-action lawsuit by paying an amount of almost $25 million. The lawsuit was initiated by condominium owners in three different Big Sky properties that were developed and managed by Boyne. The dispute primarily centered around the propriety of condo rental programs and the stipulation that rentals must exclusively be managed by Boyne.
The legal proceedings started over three years ago in the U.S. District Court in Butte. However, a preliminary settlement agreement was recently approved by Chief District Judge Brian Morris on February 27, just ahead of the scheduled trial on March 10. The final approval for this agreement is expected to be granted in June. The condo owners involved in the lawsuit are from the Shoshone Condominium Hotel, the Summit Hotel, and the Village Center Condominium, who were part of Boyne’s rental management program.
The settlement amount agreed to by Boyne does not imply any acceptance of the allegations made against them. The agreement stipulates that a settlement fund of around $18.79 million needs to be established by Boyne before April 1, which will be distributed among the plaintiffs and other class members. Any objections to the settlement must be filed by May 2, with a hearing scheduled in June at the Butte courthouse to address these objections and finalize the settlement.
The number of approximately 377 class members, including Lawrence Anderson, Robert and Nora Erhard, and Tjarda Clagett, along with others who have been involved in these particular property holdings. The distribution of the settlement funds to the class members will be done based on a formula determined by the plaintiffs’ legal representation and approved by the court, depending on their interactions and transaction history with Boyne.
Apart from these cash settlements, Boyne is also obligated to pay a total of $6.2 million to the three homeowners’ associations involved, with payments staggered in two equal installments. Additionally, the settlement eliminates the exclusivity agreement that mandated Boyne as the sole rental management company and hotel manager for the condo-hotels due to aunderstanding that exclusivity does not hold under Montana law.
Spokesperson Stacie Harris from Boyne has not provided any additional comments concerning the case. The settlement will not only have financial implications for Boyne and the condo owners but also change the relationship dynamics between them and the operating agreements for the properties in question.