Originally Posted by litterbug
Fraud or not, nobody relied on that letter, which was dated two months late, anyway. Zero harm equals zero liability equals zero chance of prosecution.
Actually both Pwder and Talisker relied on the fraudulent letter. It is entirely Pwder's claim that the lease should have been renewed based on the letter.
With Pwder's fraud at the heart of the issue, Pwder's asking for consideration from the court is not likely.
Even if one were to give Pwder the benefit, at BEST its claim of $7M in improvements, less two years depreciation with a fair market value (likely none to Vail since the improvements involve connection to Pwder's base area) a $3M+/- claim.
The revised balance sheet for mediation.
Vail/Talisker liability $3M
Pwder liability $50-$150M plus criminal mail fraud.
No matter how you slice it, Pwder owes more than its base areas asset is worth.
Shutting down Park City is a big deal for township, county, state and local Federal authorities. They have a lot of financial and legal levers to apply to Pwder. I think that has been made known to Cummings and the mediation will likely be Vail having complete access and control of the base area lifts, ticket offices and parking for 10 years for no cost. Pwder gets to sell access to the ski area to its property tenants.
If Cummings is unreasonable does not strike a deal in mediation and insists on shutting down Park City, he will pay a heavy price for his hubris.