Foundation has 90 days to purchase Verkhovyna (03/18/01)

Foundation has 90 days to purchase Verkhovyna

MONTICELLO, N.Y. - Following daylong conferences of attorneys and a judge of the New York State Supreme Court in Sullivan County, the Ukrainian American Cultural Foundation has been given 90 days to close on the purchase of the Ukrainian Fraternal Association's resort in Glen Spey, N.Y.

The UFA had been planning to go ahead with the sale of Verkhovyna to a buyer from Monticello, N.Y., until the settlement was reached on March 12.

A hearing had been scheduled for that day for oral arguments before Judge Burton Ledina of the New York State Supreme Court in Sullivan County, based in Monticello, to determine certain preliminary issues in the case of Ukrainian American Cultural Foundation et al vs. the Ukrainian Fraternal Association.

The primary issue was whether the plaintiffs, the UACF and others, were entitled to maintain the preliminary injunction granted them on February 15 that restrained the UFA from selling its resort to David Willner.

The UACF argued that UFA executive officers, in agreeing to sell Verkhovyna to Mr. Willner, had acted in violation of the resolutions adopted at the 1998 UFA Convention as well as the 2000 annual meeting of the UFA Supreme Council. Both bodies, which supersede the authority of the Executive Committee, had voted to sell the resort to the UACF.

The defendants, including the UFA and its president, Ivan Oleksyn, cross-moved for dismissal of the lawsuit, removal of the temporary restraining order and removal of the lien placed on the Glen Spey, N.Y., property by the plaintiffs. They argued that the UFA By-Laws give the Executive Committee the authority to sell the resort.

The plaintiffs were represented by Oleh N. Dekajlo. The defendants appeared with the proposed purchaser, Mr. Willner, and were represented by Gerald Orsek, Andrew Hailstone and L. Viglotti.

The plaintiffs were supported in court by the appearance of over 20 members of the Ukrainian and non-Ukrainian community.

After a full day of conferences involving the attorneys, the presiding justice and his legal staff, at the final hour a resolution was reached and incorporated into the court's order.

The two sides sought a settlement without going to trial as resolution of the case would have been prolonged and its outcome would have been uncertain. Mr. Dekajlo explained that Mr. Willner, a camp operator, had already made arrangements for summer camps on the Verkhovyna property, having hired counselors and staff for the campers, and wanted to proceed with the camps, while the UACF preferred not to take the risk of an extended court trial and further legal wrangling that might have resulted in the Ukrainian community's loss of Verkhovyna.

Among the provisions of the decision are the following points:

The contract between the UFA and Mr. Willner dated December 5, 2000, is terminated and deemed null and void; thus, the property will not be sold to Mr. Willner.
A new contract from the UFA to the Ukrainian American Cultural Foundation is to be prepared by the UFA and signed before the end of this week.
In order to prevent Mr. Willner from suing Mr. Oleksyn and the UFA for monetary damages based on the alleged breach of their contract of sale and Mr. Oleksyn and the UFA board for allegedly acting outside the scope of their authority (in contravention of previous decisions by higher bodies, i.e., the UFA Convention and Supreme Council), Mr. Willner will be allowed to lease the Verkhovyna resort for the summer of 2001 only. (The Barka residence will not be affected by the lease and is to be respected as having cultural significance to the Ukrainian community.) He is to vacate the resort no later than August 25.
As Mr. Willner will operate a 2001 summer camp at the Verkhovyna resort, he will cure all violations at the resort, obtain all necessary municipal and governmental certificates and licenses, will keep the resort insured for this summer period for the benefit of the UFA and the UACF, and will make a security lease deposit to guarantee his obligations under the lease. In addition, he will repair and/or replace, as necessary, the refrigeration and cooking facilities, as well as the water supply and septic system of the resort.
The Ukrainian American Cultural Foundation must close title on the purchase of the Verkhovyna resort within three months and pay the balance of the purchase price, which is $1,075,000 - the same price that Mr. Willner was to pay. (Included in the purchase price is a one-family residence outside of the resort in the Glen Spey community.)

According to Mr. Dekajlo, the Ukrainian American Cultural Foundation must now undertake an immediate fund-raising campaign to raise the balance of the money necessary to buy and operate the resort.

A contract for the sale of Verkhovyna was faxed to Dr. Stephan Woroch, president of the UACF, on March 14, and the signed document was to be delivered to Scranton, Pa., to the home office of the UFA on March 15. A deposit of $107,000 was sent by overnight courier to the UFA. Mr. Dekajlo explained that the parties were to complete the contract by March 16. If all goes as planned, the closing will take place in mid-June.

A community meeting has been scheduled for this weekend in Glen Spey to discuss the latest developments in the Verkhovyna case.

UFA statement on settlement

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