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Re: Manhattan Club Lawsuit (by James W.):

beryla3 wrote:

We have been owners since 2002 and have 7 consecutive or non-consecutive nights per year. In our occupancy rights it states under " Bulk Bank" with exchange company The Management Company's right to remove from inventory available for reservation by Owners, and deposit with RCI, that number of seven (7) consecutive night occupancy periods which the Management Company reasonably believes will be necessary to accommodate the number of owners will use their Ownership Interests for exchange purpose each Use Year.

From the number of RCI guests one meets in the lobby, we all know that they have exceeded this level a long time ago. Does anyone know if the AG is aware of the written promise from 2002

Beryl

Reply:

I have been in touch with the AG regarding a letter from Salvatore Reale (in 2007) concerning unavailability of rooms. His response referred me to the Mangement Company Priorities.

In my letter to the AG, I cited the RCI provision -- removal from inventory of occupancy periods "the Mangement Company reasonably believes will be necessary to accommodate owners who will use their interests for exchange purposes with RCI."

I commented: "An audit of the periods so removed and actually used by owners under the RCI program would shed light on the reasonableness of any such removal."

I also commented: " Paragraph (c) authorized the Management Company to rent to the general public periods which remain unreserved 72 hours prior to the first day thereof. The implication here is that there would be no right to remove from inventory and rent to others any units until that 72 hour period commences."