We have been sharing information in the dispute relating to the charging of “fractional fees” by FPSL and FPS Corporate Services over the past months. Many fractional Owners have been providing information to us regarding the demands for payment and these have been shared with the legal team working on this matter. Thank you to the many who have provided this assistance.
We have now been informed that one of the LBG Companies has taken the lead in moving this matter forward and has initiated an action in the High Court against FPS Corporate Services, FPSL and their Directors being David and Nick Hannah. David Hannah was removed from this LBG Company by its Members last month and now the remaining Directors have taken the step to initiate this legal action. TRG/Sua Casa is not involved but the Directors of the LBG Company have kept us informed. They explained that as High Court proceedings are available to the public it is possible that there will be comment in the media and social media. They have promised to keep us up to date and have explained that they will also try to communicate directly with as many members as they have details for. We have offered our assistance in making sure that Owners are kept informed.
There are a few key messages that should be explained:
- While the action makes serious allegations, they cannot be considered proven until the Court process has concluded, and that may take some time
- The action primarily concerns the charging of ‘fractional fees’ by FPSL/FPS and has no impact on rental performance or the underlying properties.
- The costs of the legal action are not falling on the Members or TRG and there is no reason for Members to become directly involved.
- The action seeks that the alleged overcharging for ‘fractional fees’ stops immediately
Based on this development we continue our recommendation to all Members that until the legal process is concluded they refrain from paying fees to FPS or FPSL, and retain records of any amount that has already been paid. Although the action is taken by one LBG Company, we understand that the eventual ruling may potentially be of benefit to all LBG Companies and their Members.
There is no other action for Owners to take at this stage, and we will attempt to keep you updated with developments as they are shared with us.