President of Grand Summit Hotel’s Homeowner’s Association faces lawsuit
Condo owner claims $15 million renovation not up to par
October 1, 2017
George Fleming considers himself one of the original homeowners at the Grand Summit Hotel in the Canyons Village base area at Park City Mountain Resort.
Fleming said he has owned two units for nearly 12 years and has been a member of the homeowner's association for just as long. He and another owner admitted to The Park Record that the hotel was due for a renovation.
The Grand Summit Homeowner's Association, which owns the hotel located at 4000 Canyons Resort Drive, authorized a $15 million remodel of 212 suites. The renovations, which included updating communal spaces such as the lobby, front desk area, spa and café, were completed over the summer.
But now, homeowners are claiming the work was not up to par with their expectations and that the Grand Summit Homeowner's Association, particularly President Jim Dullanty, was not transparent with financial and design information.
In July, Fleming filed a lawsuit in Summit County's 3rd District Court against Dullanty alleging "his acts and omissions constitute willful misconduct and gross negligence." No other defendants were listed in the lawsuit. A lawyer hired to represent Dullanty said he is unable to comment on pending litigation.
Vail Resorts has managed the hotel since 2013, but is not involved in the lawsuit.
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The 10-page complaint alleges Dullanty purposely withheld information about the contractor hired to complete the renovations from board members and individual owners, in addition to letting workers sleep in units without permission from owners.
"What I want to do in this lawsuit is let some sunshine in on the transactions that have been made that add up to $15 million," Fleming said in an interview with The Park Record from Houston. "They didn't perform quality workmanship. It is hard for me to believe, based upon the quality of the work and materials, that you could spend that much money. How do you take a place that was just about to be a four-star hotel and make it a two-star?"
The lawsuit alleges the contractor, identified in court documents as a New Jersey-based company, violated its contract by starting the renovations without a valid Utah license and building permit from Summit County.
"Dullanty is in obvious violation of the contract," Fleming said. "He didn't replace them (contractor). He continued with him and as he is bringing in out-of-state employees, he let them house them and has them sleep in the owners' units. This whole thing was done despite the fact that you have good contractors and good designers in Park City."
Fleming said an audit has been requested, but claims Dullanty has stalled the results by withholding payment for the service. He added, "I'm suing him, in part, to get information to see where the $15 million went."
Jeff Dunham, who has owned a unit in the Grand Summit Hotel since 2003, echoed Fleming's complaints. Dunham is not involved in the lawsuit, but made similar claims against Dullanty.
"In the beginning, many grandiose statements were made that, 'This will be done and that will be done and it will be fabulous and transparent and everyone will be happy at the end,'" Dunham said in an interview with The Park Record from Orange, California. "I have to point a finger at someone so I'm going to do it. The renovation was spearheaded by the HOA President Jim Dullanty."
Dunham said he feels "angry and violated." He visited his unit recently and claims there is substantial damage from "shoddy work and things don't work."
"He (Dullanty) promised the hotel would open July 1 and, yes, a few rooms were open," he said. "But, he was months late. There was a lot of debris that was left behind. Furniture, fixtures and equipment was piled up in the parking lot and it was all very poorly handled.
"What I would like to see happen is all the damages and all the shortcomings in the renovation that are currently sitting there, all need to be fixed at the expense of the people who caused the damage," he added.
Last month, a motion was filed by Dullanty's attorneys to dismiss the case. The motion claims Fleming has improperly sued Dullanty because a "corporate officer is not personally liable for actions taken as a representative of the corporation, even if the officer's actions are allegedly wrongful," according to court documents.
"Indeed, each of the statutes Plaintiff cites specifies that an action brought for nondisclosure of documents must be brought against the governing entity—whether that entity is a homeowners' association, an association of unit owners, or a corporation—and not against any representative thereof," court documents state. "Even taking Plaintiff's allegations as true, Defendant cannot be held personally liable for failing to produce documents."
Fleming filed a motion to dismiss the request. It is currently awaiting a judge's decision.
Editor’s note: A previous version of this article incorrectly referred to the president of the Grand Summit Hotel’s Homeowner’s Association as Jeff Dullanty. His name is Jim.