Evergreen Lodge developers ask judge to dismiss claims in civil suit
Hearing set for Oct. 30
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The group behind a proposed redevelopment of the Evergreen Lodge property in Vail has asked a judge to lift a court order that has put the project on hold, calling a recently filed lawsuit by a handful of condominium owners a “shakedown.”
The Solaris Group acquired the property in 2012 under the name HCT Development and received approvals in 2023 for a redevelopment plan, which could include 109 residential condominiums ranging from one- to four-bedroom units; a minimum of 100 attached accommodation units; amenities such as a lobby with a front desk and concierge, workout facilities, an exterior pool, hot tubs, fire pits, space for an eating and drinking establishment, and space for a retail shop; and 20 on-site employee housing units.
Fifteen of the 19 unit owners voted in favor the plan, and the four remaining owners — George and Mary Cavanaugh, Peter Sallerson, Kenneth Maloney, and Barbara Lynn Scott Palermo — filed suit on August 21, alleging conflicts of interest, bad-faith dealings and unlawful contract terms. On August 27, Judge Reed Owens issued a temporary restraining order halting a scheduled vote on termination. That order was extended on Sept. 5, to last through Oct. 30.
On Tuesday, the condo association and its board members filed a motion to dissolve or modify the order, arguing it improperly restrains all unit owners — not just the parties in the case — from exercising their voting rights under Colorado law.
In court documents filed Wednesday, HCT also opposed a motion by plaintiffs to convert a temporary restraining order into a preliminary injunction, saying the plaintiffs’ claims are “groundless and frivolous.” The developer argued that plaintiffs are improperly using the lawsuit “to try to extract more money for their units than the law allows.”
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HCT, in its Oct. 1 opposition, asked the court to deny the injunction outright. The company said it has already spent millions of dollars on planning and intends to begin construction in early 2026. It also stressed that the redevelopment plan “is not a board-driven scheme,” but an owner-driven effort backed by more than three-quarters of the association.
The developer noted that several plaintiffs — including Maloney, Palermo, and Sallerson — signed reconstruction agreements earlier this year that gave HCT “the unambiguous right to terminate the agreement for any reason.” When the project’s design and economics shifted during Vail’s review process, HCT exercised that clause, prompting claims of breach of contract. The developer says those claims cannot stand given the plain language of the agreements.
The plaintiffs, in earlier filings, argued the contracts were void or unconscionable and that the association and developer acted in bad faith in pursuing termination.
The case is scheduled for an Oct. 30 hearing in Eagle County District Court, where Owens will consider whether to lift, extend, or convert the restraining order.
