A Canadian man, Mark Schacter, doing business as Design Motivation, sued Tom Stewart, Robert “Bobby” Blanche and Little River Golf Club, accusing them of breach of contract and fraud in connection with an alleged deal to lease the property during the U.S. Open next June.
Schacter wants treble damages according to court documents filed in the case.
At issue is whether or not a letter of intent constitutes a contract and whether or not Little River concealed some facts, as well as whether Schacter made false representations.
A letter from Schacter’s attorney, Jerry D. “Dusty” Rhoades of Aberdeen, filed in the suit, alleges direct, consequential damages that “could easily exceed $150,000.”
Schacter’s suit claims that he and Little River contracted with the property to lease the entire premises of Little River Farm for the U.S. Open.
The defendants deny “that any one of them entered into a contract with the plaintiff,” admitting only that they expressed a mutual intent last June, according to a reply filed by Southern Pines attorney Douglas R. Gill, who represents them.
A copy of a letter Schacter and Stewart signed is attached to the suit, a document that Schacter contends is a contract.
“Little River will lease to Design Motivation, the entire premises … and the exclusive use of the property, i.e. restaurants, bars, golf course and range during the week of the 2005 USGA Open …” the letter says.
The cost for the week, according to the letter, would have been at least $400,000 and would include rooms, golf, carts, breakfast, lunch and dinner, range balls, 200 U.S. Open weekly tickets, and shuttle service to the Championship.
Alcohol would not be included, and additional charges for every occupant over 144 of $1,000 each would accrue.
A $100,000 deposit was to have been paid on or before July 5.
Little River and the other defendants deny that the letter constituted a contract. They say it expressed an intent only.
“Any communication that the plaintiff asserts is a contract is, at best, an agreement to agree and is unenforceable as a contract,” court documents say.
While Stewart had actual authority to sign that letter of intent, he did not have the authority to enter into an actual contract unless terms and other requirements had been determined, the defendants said.
Some of those requirements, according to court documents, would have been eliminating other claims on the property Schacter sought to lease.
Only in that case would Stewart have been given the actual authority to enter a contract on behalf of Little River Golf.
“We had a lot of details that were never completely worked out,” Stewart said. “That’s one reason we contend there never was a contract.”
Schacter claims in the suit that the defendants knew they had prior commitments for some of the property, that they led him to believe they were able to lease him the entire property, and that their behavior constitutes fraud, misrepresentation, and was an illegal unfair and deceptive trade practice.
“I am surprised that this happened,” Schacter said. “Obviously we don’t agree about the contract question. I guess that’s what courts are for.”
Gill denies most of Schacter’s claim in a reply filed with in Moore County Superior Court.
Schacter is accused of making false representations and intending to deceive.
The main issue before a court is whether or not there ever was an enforceable contract, according to both Stewart and Schacter.
In an offer made to settle the case, the defendants offered in August to allow a judgment against them for $7,500 together with costs, but not including any attorney fees.
Attorneys in the case took depositions Wednesday.
The next stage will be a mandatory mediation conference.
