CS Ventures and Terradyne Residential are suing other part-owners of the Andover, Kan., club, claiming the others have not paid their part of cash calls. A 10-person partnership bought the club out of bankruptcy in 2006.
A financial dispute among the partners of Terradyne Country Club in Andover, Kan., and Terradyne Residential has resulted in a lawsuit. A Wichita Eagle blog, “Have You Heard?” reported that Craig and Christy Smith, who make up CS Ventures, and Terradyne Residential have filed a lawsuit against partners Jerry Slack, Earle Evans and Wichita-based BGS Cos., claiming their partners have not paid their part of the cash calls.
Evans and Slack deny the allegation, arguing they are not getting full credit for their work, the blog reported.
Evans said he only heard about the lawsuit when a reporter mentioned it to him. “I’m amazed because I talked to Craig Smith … yesterday. He never said anything,” Evans said. Though Smith said Evans signed the receipt of the suit papers, Evans alluded to the possibility of a countersuit.
In 2006, a 10-person partnership formed to buy the bankrupt Terradyne. Harvey Sorensen, Smith’s lawyer, said the partnership initially went well, the blog reported.
“They had a positive cash flow excluding capital expenditures,” Sorensen said. “They invested a lot of money in redeveloping the course and redeveloping the clubhouse and getting the residential development ready to go, and then the world collapsed.
“There are several people who wanted to ride the elevator up, but wanted to get off when it started to go down,” Sorensen added.
Sorensen said only half the owners contributed funding during the club and residential development’s losses. As a result, he predicted more lawsuits to come to obtain the noncontributing members’ financial obligations, the blog reported.
Evans said he would be willing to pay more under certain circumstances, to prove that he has not been given proper credit. He added that he is disappointed the issue has become a public matter.
“It’s one of those situations where this doesn’t do any good for our membership or anything along that line,” Evans said. “They’re kind of cutting their own throats on it. It doesn’t help people wanting to join Terradyne.”
Smith said the club is doing well now that Irwin Golf Management is handling operations. Sorensen said the lawsuit is not a reaction to difficult times for the club, the blog reported.
“The club has never suffered because the people who were behind it put the money in and made sure the club didn’t suffer,” Sorensen said. “As long as they pay their share, we’re happy to let them play the game. I don’t think anyone is willing to let them let all their chips ride and never place a bet.”