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Members Behaving Badly How to Handle Member Discipline Vail, Colorado August 2008

Members Behaving Badly How to Handle Member Discipline Vail, Colorado August 2008. Robyn Nordin Stowell Partner Holme Roberts & Owen LLP Phoenix, Arizona T: 480-624-4550 E: robyn.stowell@hro.com www.hro.com. Ted M. Benn Partner Thompson & Knight, LLP Dallas, Texas T: 214-969-1423

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Members Behaving Badly How to Handle Member Discipline Vail, Colorado August 2008

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  1. Members Behaving Badly How to Handle Member Discipline Vail, ColoradoAugust 2008

  2. Robyn Nordin Stowell Partner Holme Roberts & Owen LLP Phoenix, Arizona T: 480-624-4550 E: robyn.stowell@hro.com www.hro.com Ted M. Benn Partner Thompson & Knight, LLP Dallas, Texas T: 214-969-1423 E: ted.benn@tklaw.com www.tklaw.com

  3. Examples of members behaving badly…

  4. A member uses cocaine by the club’s pool at a family event, but when we initiate the discipline process we find that her membership file is nearly empty.

  5. Member becomes extremely drunk at a member-guest tournament and makes lewd sexual comments to various members and guests, including utilizing a “sex meter” that allegedly reports various facts about the member’s or guest’s sex life and which he announces to the crowd.

  6. Member emails most of the club’s membership criticizing various employees and falsely suggest that one employee received “kickbacks” from vendors.

  7. Club caters private party at a member’s house. Another member corners a club waitress and makes harassing and sexual comments to her.

  8. The club offers a member the opportunity to resign rather than be disciplined, and the member’s lawyer calls the club’s lawyer to negotiate the possible discipline scenarios.

  9. A grown son of a member is found at dawn by the grounds crew asleep and naked on the club’s 18th tee box.

  10. Shoves and punches were exchanged at the men’s golf day between two members who were opposing one another in a lawsuit.

  11. A member receiving a massage at the club’s spa requests the masseuse to massage certain additional body parts.

  12. The past president is having an affair with the dining room hostess, and it is discovered by both the president’s wife and the hostess’ husband.

  13. Member’s son and his date are caught “making whoopee” on the 14th green at 2:00 am.

  14. Male/female members (married, but not to each other), playing a reciprocal club rather than their home club are observed by the Club Manager “making whoopee” in a golf cart at dusk. Manager yelled from a distance that it was almost dark and carts needed to be returned to the clubhouse. Male member waved, said he would be there shortly, and finished what he was doing.

  15. Member’s son, age 21, attends New Year’s Eve party at club where he and friends are “dirty dancing” and underage friends are using his fake ID.

  16. So what is the law with respect to member discipline?

  17. What laws and rules govern the process? • State law – statutes regarding non-profit corporations for Equity Club • Common law • The Club’s Bylaws or Membership Plan • Contact between Club and Member • Club Rules

  18. What is the legal framework relating to member discipline in a private club setting?

  19. The Club as: • Rule Maker (legislature) • Rule Enforcer (police) • Judge and jury

  20. Planning Ahead • New member documents • Written policies • Publish the requirements • Document Infractions and Enforcement

  21. Other Requirements • Consistency • Empowering the staff • Follow up each complaint

  22. What is the general process for member discipline? • Investigation • Board Action • Notice • Opportunity to be heard and/or appeal • Appropriate consequences

  23. When should client call the lawyer? • Illegal activity • Employee involvement • Liability concern • Lawsuit threatened or filed • Bylaw and membership plan interpretations

  24. Investigation • By the general manager • By the lawyer • By the president • By the grievance committee

  25. Board/Owner Action • Board: • By written consent? • At regular meeting • At special meeting • Owner: • with or without input from grievance committee

  26. Notice • Timing: • Bylaws or rules • Statutes (for equity club) • Usually 10-30 days • Notice: • Written letter • (Proposed) discipline stated

  27. Hearing • Can the member have counsel? • Who presides? • Do you present witnesses?

  28. Appropriate Consequences • Censure • Fine • Suspension • Term? • “Request resignation” • Expulsion/Termination

  29. So how did these stories end?

  30. The cocaine lady…

  31. The sex meter guy…

  32. Emailing slander guy…

  33. Harassing the waitress at the member party guy…

  34. The lawyer negotiated the discipline…

  35. The naked member on the 18th tee box…

  36. The fist-fight at men’s golf day…

  37. The massage guy…

  38. The president who had the affair with the hostess…

  39. Member’s son having sex on the green…

  40. The whoopee in the golf cart couple…

  41. The “dirty dancing” son is…

  42. Members Behaving Badly How to Handle Member Discipline Presented by: Robyn Nordin Stowell & Ted M. Benn

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