Third Party/Negligent Misrepresentation
A member of an upscale golf club in Houston filed a lawsuit against the club claiming fraud, negligent misrepresentation and defamation. He was a social member whose golf play was limited to just two days a week. He attempted to upgrade to a resident member with unlimited golf privileges. He claimed he was approved by the membership committee but was then told there were objections to his recommendation to resident member. The member claimed he was being “blackballed” and that it was against the by-laws. The club approved his membership upgrade and the case settled. Defense costs totaled $10,000.