Desert Inn resident fails to block meeting of Wynn’s new homeowner board

Grace Leong

Wednesday, Nov. 1, 2000 | 11:09 a.m.

A member of the Desert Inn Estates Homeowners Association failed in her bid to obtain a court order to block a meeting Tuesday of a newly elected association board that she claims was "illegally constituted."

Stephanie Swain, who owns a home at 36 Country Club Lane on the Desert Inn golf course, sued the association's new board members including Steve Wynn and his wife Elaine and Desert Inn attorney Mark Rubenstein in a Clark County District Court suit. Wynn's company, Valvino Lamore LLC, and a subsidiary, Desert Inn Improvement Co., were also named.

Swain, who sued to invalidate the new board, alleged Rubenstein violated Nevada law and the association's governing documents when he allegedly held a meeting of homeowners on Oct. 6 at the Desert Inn to oust the old board, elect a new board and amend the bylaws of the association. The suit said none of the homeowners appeared at the Oct. 6 meeting.

Swain said she feared her homeowner's rights and entitlements would be lost if the new board held a meeting on Tuesday allegedly to "elect officials, amend bylaws, ratify or terminate the property management contract ... terminate the 24-hour guard service and terminate the liability insurance for the legitimate board."

Swain, who said she is a secretary of a board that she claims was legally elected on Sep. 20 at an association annual meeting, alleged none of the homeowners voted for Wynn to be on that executive board.

John Netzorg, Swain's attorney, said: "The (court) order wasn't granted because Valvino said it wasn't going to do anything to adversely affect the homeowners at the Tuesday meeting."

But he said a preliminary injunction hearing is scheduled to be held on Nov. 13 to resolve a dispute over which board is legitimate.

"The defendants failed to properly notice the purported special meeting of the members of the association ... by not giving at least a 30-day notice to all unit owners of their entitlement and eligibility to be both placed on a ballot and serve on the board. The majority of members of an executive board must be unit owners ... and the defendants do not qualify," the lawsuit said.

"Every homeowner has the right to nominate themselves," Netzorg said. "But for the special meeting where the second board was elected, the (defendants) gave only 10-15 days notice. None of the homeowners had a chance to put their choice of candidates on ballot and yet the board was elected."

Valvino Lamore, which is Wynn's holding company, bought the Desert Inn Hotel and Golf Course in June and about 35 residences at the golf course. Wynn named his company after his grandfather who came to the United States in 1914. The Desert Inn closed in August.

Wynn has bought out several Desert Inn homeowners to make room for his new project -- converting the Desert Inn hotel-casino and much of its country club golf course community into a giant casino resort. Swain is one of the homeowners who refused to sell to Wynn.

Swain, who also said the Desert Inn has failed to correct code violations at its residences, alleged vagrants were "frequently present, pools have been left partially filled or empty and water has been turned off, presenting potential fire hazards."

Desert Inn homeowners have received their water supply from the hotel since its opening in 1952.

"Wynn has shut off the water supply to some of the homes he had already acquired. But there are 12 lots he doesn't own and we're getting water from (Wynn's Desert Inn water company.) We're suing that company to ensure that we continue to get water from them," Swain said.

The defendants could not be reached for comment on Swain's allegations.