Judge holds former Silverstone golf course owner in contempt

A federal judge held the former owner of Silverstone golf course in contempt of court Monday for failing to turn over all communication related to its recent sale of the property.

U.S. District Judge Richard Boulware gave the former owner, Desert Lifestyles LLC, until Wednesday to comply with his order or face daily fines of $10,000.

"They will comply, and they'll have two days to do it, or they'll be sanctioned for it," the judge told attorney Ross Goodman, who represents the company.

Homeowners filed a lawsuit against Desert Lifestyles after the California-based company, which purchased the property on Sept. 1, shut down the golf club and turned off the water. On Wednesday, the company notified the plaintiffs that it had sold the golf course the previous day to Stoneridge Parkway LLC.

On Thursday, Boulware ordered the defendants to produce all communication with Stoneridge, which filed for bankruptcy on Friday, or any other prospective buyers regarding the sale of the golf course property. He allowed the defendants to produce the material under seal.

At Monday's hearing, which drew about three dozen spectators, the judge told Goodman to emphasize to his client that "the court is not satisfied with the current production."

"Your client appears to have engaged at times in a regular disregard of the court's orders," Boulware said.

If no other correspondence is produced by Wednesday, the judge said, Desert Lifestyles attorney Ronald Richards should be prepared to testify under oath that none exists. Boulware denied a request by Goodman to allow Richards, who practices in California, to give such testimony privately.

"He's going to take the stand publicly, and he's going to say what he does or doesn't have," the judge said.

In November, Boulware issued a preliminary injunction that forced Desert Lifestyles to restore the property to the condition it was in when it was sold and shuttered.

On Monday, Boulware said the injunction is no longer enforceable against Desert Lifestyles. And Stoneridge's decision to seek Chapter 11 protection placed an automatic stay on actions related to the golf course property.

Boulware said it is unusual for an entity to make a large purchase and then immediately file for bankruptcy.

Attorney Richard Haskin, who represents the Silverstone Ranch Community Association, said his clients believe the bankruptcy filing is fraudulent.

Timothy Elson, another attorney for the association, said they plan to pursue remedies in bankruptcy court.

Elson said he does not know whether the course, which is in the northwest valley, is currently being watered. Attempts to reach Stoneridge attorney Matthew Abbasi for comment were unsuccessful.

Boulware has scheduled a Jan. 7 hearing on a motion for sanctions against Desert Lifestyles for failing to comply with his injunction. Haskin said the judge should award sanctions equal to the cost of restoring the golf course.

Contact reporter Carri Geer Thevenot at cgeer@reviewjournal.com or 702-384-8710. Find her on Twitter: @CarriGeer