Polo Towers owners allege bad-mouthing from a Las Vegas timeshare competitor

David Strow

Thursday, Dec. 16, 1999 | 10:55 a.m.

The owners of Polo Towers on the Las Vegas Strip sued an Orlando competitor, accusing its Las Vegas employees of using false and misleading statements to scare customers and employees away -- and claiming that the competitor is on the verge of acquiring Polo Towers.

The lawsuit, filed against Fairfield Communities Inc., seeks monetary damages for defamation and unfair competition. Polo Towers is also seeking a judge's order barring Fairfield from continuing to make the allegedly defamatory remarks.

Fairfield is currently preparing to open Fairfield Grand Desert Resort, a Las Vegas timeshare property.

The suit says Polo Towers' management first learned of the damaging remarks through its customers. On Nov. 10, Richard Cloobeck, general counsel of Polo Towers, demanded a halt to the practice.

"I am informed that individuals with whom we have business relationships have been told by your company's representatives that, among other things, Polo Towers is financially bankrupt, Polo Tower's management is inept and conducts its business through motivation by intimidation and that Polo Towers is being sold to Fairfield," Cloobeck wrote to Fairfield.

Two weeks later, Fairfield flatly denied the charges.

"Fairfield has reviewed the allegations contained in your letter with our personnel in Las Vegas, who have denied that the defamatory conduct occurred, although there is clearly competition between our two companies," wrote Fairfield general counsel Marcel Dumeny, who said the company had issued a memo to Las Vegas employees warning them against disparaging competitors.

Nevertheless, Polo Towers claims the defamatory statements have continued since then. Fairfield representatives are still referring to Polo Towers as an "affiliate," the lawsuit claims, and are making "threatening and intimidating remarks" to Polo Tower employees.

The lawsuit revealed that Polo Towers and Fairfield have been engaged in talks to form a business alliance or joint venture since at least 1997, though Polo Towers says no deals have been signed. It has presented some financial information to Fairfield, but said a confidentiality agreement prohibits Fairfield from disclosing any information from these documents.