Hermitage Club a no-show for condo court hearing
NEWFANE- For the second time on Tuesday, Windham Superior Court Judge John Treadwell granted a plaintiff's motion for summary judgment after the Hermitage failed to present any defense or even send a representative to the court.
Tyler and Rose Dickson filed their suit against the Hermitage in November 2017, after they paid more than $900,000 for a Garmisch Court condominium at the Hermitage. In a supporting affidavit filed with their complaint, Tyler Dickson said the couple signed a purchase and sale agreement with the Hermitage Inn Real Estate Holding Company and James Barnes in October 2015. Dickson said the construction of the townhouse took a year longer than the deadline of December 24, 2015 under the agreement. “But by January 2017, the townhouse was substantially completed and a certificate of occupancy was issued, a certificate of substantial completion was issued, and the Dicksons were provided with keys and were able to access the townhouse.”
But the Hermitage and Barnes were unable to close on the property, despite the Dicksons' requests. “By the last week of March 2017, Barnes personally represented to me that (Barnes and the Hermitage) would close on the transaction that week,” Dickson said in the affidavit. “Eventually it became clear that the defendants did not wish to, or felt themselves unable to, pay contractors or suppliers to ensure a title clear of mechanics' liens, notwithstanding that (the Dicksons) had already paid progress payments amounting to over 90% of the purchase price.”
At a motion hearing in Windham Superior Court on Tuesday, May 15, the Dicksons' attorney, Evan Chadwick, told Judge Treadwell his clients' story was not unique. “Unfortunately, this is not the first case similar to this involving the Hermitage,” he said. “My clients are one of many wronged significantly by this company.”
Chadwick said his clients followed their requirements under the purchase and sale agreement, including making required progress payments deposited “in an operating account controlled by Barnes and the Hermitage. But they can't close on this property. The property is encumbered by more liens than I can count, and now it's part of an active foreclosure. This is one big mess, and we're asking the court to give us some relief.”
Judge Treadwell granted the motion on the spot, entering a judgment for $982,955, plus $323.16 per diem. In his signed order, the judge ordered Barnes and the Hermitage to close on the property within 15 days of the order and provide the Dicksons a clear title to the property or pay the judgment. The order also requires the Hermitage and Barnes to provide “an accounting of all funds paid by (the Dicksons) under the purchase and sale agreement and all transfers or expenditures of such funds and all funds expended on the construction of the (townhouse)” within 30 days.
Outside the courtroom, Chadwick said the outlook for his clients' collection on the judgment appears slim, given the Hermitage Club's current financial and legal troubles. In the event of a court-ordered auction of Hermitage properties under Berkshire Bank's foreclosure, however, creditors such as the Dicksons may be able to collect some or all of the money they are owed from auction proceeds over and above the debt to Berkshire Bank.