Supreme Court Denies Certiorari in Securities Case Relating to Ownership Interests in Condominium-Hotels
By JOSHUA HAMILTON, MICHAEL BRADFORD & JENIFER DOAN
Without any discussion or rationale, the U.S. Supreme Court denied certiorari in the case _Tamer Salmeh, et al. v. Tarsadia Hotel, et al._0F, perhaps signaling finality to the issue of whether interests in condominium-hotels, combined with the opportunity for rental income, are governed by the federal securities laws. The case has been followed closely by real estate developers, purchasers, and attorneys since it was first filed in December 2009. The Supreme Court’s refusal amounts to a significant win for hotel-condominium developers who have faced an onslaught of litigation since the beginning of the economic downturn involving financially- hotel-condo and time share projects that declined in value following the collapse of the real estate market. However, the ruling is limited to securities laws issues, and does not address broader legal claims that purchasers had made relying on the Interstate Land Sales Full Disclosure Act.