Is Mr. Foster totally to blame?
I have commented before and I have sat back and read others comments and this hasn’t been said, or asked before – who is really to blame?
Yes, Mr. Foster sent the members a letter on 17 October, 2001.
I have a copy of this letter in my files in case Mr. Foster’s copy has been destroyed.
It reads: ‘We regret to inform you that our annual maintenance fees have to be increased from January 2002. Over the years they have tried to keep the costs down, but the increase is unfortunately due to the rising cost in our insurance, labor and government fees. At this point we have no other options. This increase is less than the 10 per cent annual cap allowed by the Club by Laws or $30 per year. Multiple week owners will still receive the benefits of a discount.
Failure to pay yearly dues will result in loss of your Club Membership at the Indies Suites and Exchange privileges through R.C.I.
‘Thank you for your continued support and understanding.’
It is then signed by Mr. Foster.
This letter indicates that Mr. Foster asked for more money to cover the insurance costs and the members held up their end of the contract by paying the increased dues.
Now if Brac Construction is the only shareholder of the Indies Suites, and the directors of the Indies Suites and Brac Construction are Alberga and Myers, are they responsible for this? Can the directors be held at all responsible for any part of this? Is Mr. Foster totally to blame here?
Mr. Foster said he insured the Indies for what the bank required him to be insured at. Does that make the bank partially to blame? Were the directors aware that the dues had increased to help cover the increase in insurance costs? Were they aware of the building being underinsured? Or were Alberga and Myers in the dark about the running of the Indies Suites by Mr. Foster? What exactly is the job of the directors? Are there meetings held to keep them informed of the daily operations of the Indies Suites and Brac Construction?
Mr. Foster made a comment previously in the paper that the Indies Suites had been losing money for some time. Why? Was it going into Brac Construction? If money is moved from one company to another does the law allow this without documentation of some kind? Or is this a criminal act?
If money is moved from one company to another, are the directors required to know about this?
Mr. Foster, Brac Construction or the directors – who is to blame? I know it isn’t the fault of any members. So if Cayman law requires a claim be filed before a creditor can be named, what does the Cayman law say in explanation of all of these questions? Again, who is to blame? Can the law just ignore a contract?