Oak Hill members could be on the hook for $160K legal costs after insurance denial
The insurers for Oak Hill Country Club are refusing to pay the club’s legal fees for an ongoing legal scuffle — costs that now exceed $160,000.
Oak Hill’s governing board informed members this week of the increasing legal costs and the possibility that member fees could end up as the source for payment. Those costs are sure to escalate: There have been a bevy of legal filings in recent weeks, a memo to members about bearing the costs and a trial is scheduled for February.
“The Club’s insurance carrier has denied coverage for legal fees on the basis that this suit involves a governor suing governors,” the memorandum to members said. “The (club’s) Board of Governors is assessing whether to challenge the denial of coverage. The Board regrettably will need to assess members to pay for the costs associated with this matter.”
Attorneys for the club declined to comment.
State Supreme Court Justice Daniel Doyle, who is presiding over the case, recently ordered a stay in the election of a new board of governors.
Finger pointing continues
Official merchandise from the 2023 PGA Championship Merchandise Center being held at the Oak Hill Country Club in Rochester, NY.
The news that members could be on the hook for the legal fees sparked responses illustrative of the finger-pointing similarly sparked by the lawsuit.
The memo from the governors highlighted that Eugene Baldino, who is at the center of the lawsuit against the club, is also seeking from the club the cost of his own legal fees. And Baldino and others suing the club — the petitioners in legal parlance — said in a statement Thursday that the club had ample opportunity to resolve the litigation with a less costly settlement.
The petitioners said in the statement through their attorney, Kelly Foss, that they “have attempted to settle these issues many times, both before and after the commencement of the litigation.”
The petitioners “have nothing to gain financially from this lawsuit,” the statement said.
“They are disappointed that a majority of the Governors instead opted to take the case to trial, apparently despite knowing the Club lacks insurance coverage and that the legal costs would ultimately be borne by the members.”
Baldino, who was on the governing board, and others sued the club, alleging that Baldino was illegally kicked off the board last year. Baldino was accused of a boorish verbal attack on a club worker last spring, the second such incident, club leaders said. An internal investigation led to his removal.
Baldino and other members maintain that he was removed because he was demanding fiscal transparency from the club and was questioning its finances. For instance, he and others at the club have alleged mismanagement of an annual holiday fund meant to provide extra money to club workers.
That money, from donations from club members, has been disproportionately doled out to better-paid club workers at the expense of those most in need of financial help, the lawsuit and subsequent court papers have alleged.
A growing rift at the club
The statement from Baldino and the petitioners also said that the memo from the club to its members has caused an internal rift.
“Members have shared that the ensuing flurry of emails and text messages reflects significant member backlash against the Board, including a number of members calling upon the entire Board to resign,” the statement said.
Those suing the club aren’t seeking the removal of any governors, the statement said.
“To continue as a pillar and respected institution in our community, the Club must put the interests of its members first, have strong leaders who are accountable for and transparent about the decisions they make, and be governed democratically and pursuant to the results of elections,” the statement said. “The purpose of this lawsuit is to secure such accountability and transparency.”
A trial is scheduled to begin Feb. 10.
— Gary Craig is a veteran reporter at the Democrat and Chronicle. Apparently his past coverage of this story led some to think he dislikes golf. He does not. He is indifferent toward the sport, much as he is with bowling.
This article originally appeared on Rochester Democrat and Chronicle: Oak Hill members could be on hook for legal costs after insurance denial
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