Paul Hastings Wins Victory for Intrawest in Far Reaching Napa Valley Real Estate Suit

February 11, 2014

San Francisco - Paul Hastings LLP, a leading global law firm, announced today that it won an important trial on behalf of Intrawest Napa Development Company, LLC (INDC), an affiliate of the Intrawest group of companies, regarding the company’s development and sale of the Westin Verasa Napa, a multi-million dollar hotel-condominium project located in Napa, California.
The plaintiffs made no claims challenging the quality of the development or the units at the Verasa. Rather the plaintiffs’ claims focused on allegations that the disclosure documents INDC provided to prospective purchasers did not satisfy the Interstate Land Sales Full Disclosure Act (ILSA). ILSA is a federal statute modeled after the federal securities laws created in 1968 to regulate the sale of subdivided lands. Since the collapse of the real estate market in 2007 and subsequent economic recession beginning around 2008, ILSA has been invoked by plaintiffs’ firms across the country as a means for buyers to combat buyer’s remorse relating to their purchases of units in projects and developments that were marketed and sold just prior to the real estate collapse.

INDC vigorously defended itself in the matter and maintained throughout the case that the Plaintiffs’ claims lacked merit. In July 2013, Paul Hastings won a partial summary judgment for INDC on two of the seven causes of action alleged by plaintiffs. Following a six-day trial in October 2013, the Judicial Referee ordered judgment in favor of INDC on every claim—a complete victory for the company.

While ILSA has been widely litigated in Florida state and federal courts, this case is one of the first of its kind to reach a trial decision in California.
The case, Jon J. Levin and Colleen Levin v. Intrawest Napa Development Company, LLC, Case No. 30-2009-00120021, was pending in Orange County Superior Court.
The Paul Hastings trial team included

, a partner and vice-chair of the firm's Los Angeles Litigation department; as well as , an associate in the Los Angeles office.

Paul Hastings LLP is a leading global law firm with offices in Asia, Europe, and the United States. We provide innovative legal solutions to financial institutions and Fortune 500 companies. Please visit www.paulhastings.com for more information.

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