Lawsuit Dismissed

The Summit County District Court has granted the Motions to Dismiss filed by the Keystone Neighbourhood Company (the “Neighbourhood Company”) and Defendants Vail Summit Resorts, Inc. and Keystone/Intrawest L.L.C. (collectively, “Vail Defendants”) against the complaint filed by Dissolve-KNC.org (“Dissolve KNC”).

The Court has ordered that Dissolve KNC’s complaint is dismissed with prejudice, stating that Dissolve KNC does not have standing to challenge the Neighbourhood Company’s Declaration of Covenants (“KNC Declaration”) because it is not a member of the Neighbourhood Company and also that the Declaration’s allocation of voting rights between the various classes of Neighbourhood Company members, including the Resort Parcel, does not violate Colorado law.

The Court previously dismissed Dissolve KNC’s original complaint, but allowed Dissolve KNC an opportunity to correct the deficiencies the Court found in the initial Complaint. In response to that Order, Dissolve KNC filed its First Amended Complaint in April, 2026.

The Neighbourhood Company and Vail Defendants then each filed separate motions to dismiss arguing that the First Amended Complaint did not resolve the deficiencies in Dissolve KNC’s legal arguments.

On August 13, 2026, the Court entered its Order granting both Motions to Dismiss and dismissing the Dissolve KNC litigation with prejudice. Generally, the Court ruled that Dissolve KNC does not possess legal standing to challenge the provisions of the KNC Declaration because Dissolve KNC is not an owner within the Neighbourhoods at Keystone, is not a member of the Neighbourhood Company, and has no contractual or legal connection to the KNC Declaration.

The Court also found that voting allocations between the various classes of Neighbourhood Company members established by the KNC Declaration, including the 1,000 votes allocated to the Resort Parcel, are proper under Colorado law and not discriminatory in favor of the Declarant or Vail Summit Resorts, Inc.

Finally, the Court authorized an award of attorneys’ fees in favor of the Neighbourhood Company and the Vail Defendants arising from the litigation.

The Neighbourhood Company is glad to have the Dissolve KNC litigation resolved and clear determination by the Court that the provisions of the KNC Declaration comply with Colorado law.