Ogunquit’s Complaint

On September 15, 2005, we filed a complaint in the Circuit Court for Frederick County. The complaint names as defendants LHCC, LHEUC, and certain past and current directors. These directors are being sued personally.

Our complaint is a lengthy legal document. Unfortunately, some sources have misunderstood the issue of damages, an important aspect of our case. For example, on 9/26/05, the Winchester Star erroneously reported that we are seeking “4 million for lost profits….” We think that’s just an honest mistake. But some of the directors being sued – who are represented by competent counsel and should know better – have made a significant misrepresentation about the damages we are claiming. As a company, we have not been damaged by $4 million, and we have never made that claim. Rather, we claim that the directors being sued damaged LHCC, and these directors will pay over 99% of the judgment directly to the Association, not to us. That is a very important distinction.

We suspect that these directors have made this misrepresentation in a self-serving effort to discredit our complaint and draw attention away from their actions.

We can’t spend the time responding to every lie. We’d getting nothing done. As Mark Twain observed:

One of the most striking differences between a cat and a lie is that a cat has only nine lives.

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