SALT LAKE CITY—A Colorado couple has sued golf legend Jack Nicklaus over their purchase of a plot and membership in a $3.5 billion southern Utah luxury golf resort that fell into bankruptcy.
E. Jeffrey Donner, a Fort Collins orthopedic surgeon, and his wife, Judee, sued Nicklaus and his company, Jack Nicklaus Golf Club, claiming he “solicited” them in 2007 to spend $1.5 million to live in the proposed Mount Holly Club development, which was to include an 18-hole course designed by Nicklaus.
However, the primary developer, Mount Holly Partners LLC, filed for bankruptcy in July 2009, and New York-based AMDS Holdings obtained the property, which has since reopened as a ski resort, The Deseret News of Salt Lake City reports.
The Donners claim that when the project fell through, Nicklaus and his company took no responsibility for the debts and obligations. The suit claims Nicklaus knew the company had serious financial and legal problems but failed to disclose them. The Donners are hoping for the return of their initial investment plus punitive damages.
Nicklaus attorney Jacque Ramos said the only involvement her client had was in the design of the golf course.
“We believe the case has no merit,” Ramos said.
In addition, court documents show the Donners signed a membership agreement with Mount Holly Club in 2007 that included a clause relieving the developer of liability if the project wasn’t completed, the newspaper reports. Mount Holly Partners is not named in the lawsuit.
Doug Owens, an attorney for the Donners, declined to comment on the case, which was filed May 31 in Salt Lake City federal court.
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Information from: Deseret News,
