UPDATED — The partners in Terradyne Country Club and Terradyne Residential are in a financial dispute that has led to a lawsuit against one another.
CS Ventures, which is Craig and Christy Smith, and Terradyne Residential have filed a lawsuit in Sedgwick County District Court against partners Jerry Slack, Earle Evans and Wichita-based BGS Cos.
“It’s just that some of the partners … have not paid their part of the cash calls,” Craig Smith says. “We’ve been patiently waiting and waiting.”
Evans says he and Slack have paid.
“We feel like we’re not getting full credit on it for what we did,” he says.
Evans says the first he heard of the suit is when a reporter told him about it.
“I’m amazed because I talked to Craig Smith … yesterday. He never said anything,” Evans says.
“That can’t be true because he’s signed receipt of it,” Smith says.
Regardless, Evans says he’s not pleased.
“There probably will be some repercussions on that.”
Meaning a possible countersuit?
“Could be. I don’t know.”
A 10-person partnership formed in 2006 to buy Terradyne out of bankruptcy, and Smith and his lawyer, Harvey Sorensen, say initially it did well.
“They had a positive cash flow excluding capital expenditures,” Sorensen says.
“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.”
He says, “There are several people who wanted to ride the elevator up but wanted to get off when it started to go down.”
During the difficult times, Sorensen says the club and residential development’s losses were funded through only about half of the owners.
“We have started a campaign to remind the noncontributing members of their obligations. We expect to be in contact with several prominent members of the community who have not paid their fair share.”