Parent company of Big Sky Resort to pay almost $25 million to settle class-action lawsuit

Boyne USA, the governing company of Big Sky Resort and various other ski resorts across North America, has recently settled a class-action lawsuit by agreeing to pay nearly $25 million. The lawsuit was initiated by condo owners at three Big Sky properties who raised apprehensions about the condo rental programs and the mandatory requirement that rentals be managed solely through Boyne.

The legal battle commenced over three years ago in the U.S. District Court in Butte and is now on the brink of conclusion, with Chief District Judge Brian Morris granting preliminary approval for the settlement agreement on Feb. 27. However, the final approval is anticipated in June of this year.

The plaintiffs in this case consist of current or previous owners of condo units at the Shoshone Condominium Hotel, the Summit Hotel, and the Village Center Condominium who participated in Boyne’s rental management scheme. In a condo hotel, a segment of the rooms is transformed into condominiums that are then sold to property owners. Owners retain the right to rent out the units to the public while benefiting from a portion of the rental proceeds. However, in this instance, owners were required to exclusively use Boyne for rental management and remit 50% of the net rental revenue to Boyne for these services.

Allegations in the original complaint contended that selling condo units under a mandatory management program is illegal and that the 50% management fee significantly exceeds the typical rates observed at similar resorts. Additionally, concerns regarding maintenance and repair fees, owners’ rental revenue, and mandatory unit availability for Boyne business partners were raised.

Despite not admitting to the claims, Boyne has proposed what it believes to be an amicable resolution to the lawsuit. According to Ben Alke, who represents the plaintiffs, the proposed settlement is met with satisfaction by both the plaintiffs and their legal advocates.

As per the terms of the settlement agreement, Boyne is obliged to establish a fund of $18.79 million by April 1 and make payments to the plaintiffs and class members, which encompasses the unidentified individuals who joined the lawsuit. Objections to the settlement must be submitted before May 2, after which a hearing will be conducted in June to finalize the agreement.

The formula for determining payments to class members will be based on their previous transactions with Boyne and is subject to court approval. While payouts will differ based on the duration of ownership and interaction with Boyne, it is projected that some class members will receive significant sums of money.

Apart from the compensation, Boyne must discontinue its exclusivity as the rental management company for the condo-hotels as mandated by the settlement. Stacie Harris, representing Boyne, expressed that the settlement aligns with their goal of maintaining the high standards of guest experience at Big Sky Resort.

Despite the persistent objections to the accusations, Boyne views the settlement as a pragmatic approach to avoid prolonged litigation costs and inconvenience. The financial compensation to the plaintiffs and class members as well as the homeowners’ associations of the properties involved is part of a resolution to bring closure to this protracted legal dispute.