Vail Resorts sues East West Partners
October 27, 2009
DENVER – Vail Resorts has sued East West Partners over the sale of Colorado Mountain Express last year.
Vail Resorts closed on the $38.5 million sale of the regional transportation company in November of last year. In May of this year, Vail Resorts announced it had fired five senior managers at the company.
In a statement at the time, Vail Resorts said “The terminations were prompted in part by the existence of ongoing bonus, severance and contingent payment arrangements totaling $4 million for the five employees.”
Vail Resorts alleges that the payments to the executives weren’t disclosed at the time of the sale, and that’s the basis of the lawsuit, which was filed last week in state district court in Denver.
Harry Frampton, a partner in East West Transportation, said the company has done nothing wrong.
“Our company vehemently denies what Vail Resorts has claimed,” Frampton said. “I don’t think we’ve conducted our business in any way improperly.”
Recommended Stories For You
Frampton added that this is the first time in East West Partners’ 25-year history that the company has been sued.
In a statement Monday afternoon, Vail Resorts spokesperson Kelly Ladyga defended the company’s actions.”
“We have tremendous respect for the years of great work Harry Frampton has contributed to the entire Vail Valley and we intend to continue to work closely with him on the Vail Valley Foundation, the town of Vail and all of Eagle County, where our interests are completely aligned. At the same time, we believe that certain actions of East West in connection with their sale to us of CME were completely inappropriate, violating both the contract between us and good faith business dealings. Our lawsuit is about holding East West accountable for those actions,” Ladyga wrote.
Frampton said he and his partners look forward to being vindicated in court, a process he acknowledged could take a year or two.
“We absolutely didn’t do anything improper,” he said.