Big Sky Resort’s parent company, Boyne USA, has agreed to pay nearly $25 million to settle a class-action lawsuit. The lawsuit was filed by condominium owners in three Big Sky properties: the Shoshone Condominium Hotel, the Summit Hotel, and the Village Center Condominium.
These owners disputed the mandatory rental management program run by Boyne, which required them to pay 50% of net rental revenue for management services.
The lawsuit was originally filed in the U.S. District Court in Butte over three years ago. Chief District Judge Brian Morris approved the preliminary settlement on February 27, just before the trial was set to begin on March 10. The agreement needs final approval from the judge in June.
The plaintiffs are current or former owners of condo units in these properties who participated in Boyne’s rental program. They alleged that the mandatory management program and high fees were illegal under state and federal laws. The settlement does not admit to these allegations.
Ben Alke, a lawyer for the plaintiffs, expressed satisfaction with the proposed agreement. The settlement requires Boyne to pay $18.79 million by April 1 to establish a fund for plaintiffs and cover attorney fees. Any objections must be filed by May 2, with a hearing scheduled for June 12.
There are about 377 class members, including named plaintiffs Lawrence Anderson, Robert and Nora Erhard, and Tjarda Clagett. Payments will vary based on past transactions with Boyne, with some expected to receive tens of thousands of dollars. The named plaintiffs can also request up to $10,000 in service fees.
Boyne must also pay $6.2 million to homeowners associations over two years. This money will be used for improvements in common areas. The settlement removes Boyne’s exclusive management rights, as this was deemed unenforceable under Montana law.
Stacie Harris, a Boyne spokesperson, said the resolution maintains Big Sky Resort’s standards while allowing them to move forward without further litigation. Boyne disputes the allegations but views the settlement as the most cost-effective resolution.
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