PARSIPPANY — The Rainbow Lakes Community Club has announced the successful resolution of a multi-year lawsuit, marking what officials describe as a significant victory for the Club and its membership.
According to the Board of Trustees, the settlement brings closure to a long-standing legal dispute involving 19 named plaintiff properties.
Key Settlement Terms
As part of the agreement:
• The 19 plaintiff property owners have withdrawn from the Club.
• As non-members, they will not be permitted to use community amenities, including the lakes, beaches, clubhouse, volleyball court, tennis court, horseshoe areas, and Bow Bar.
• These property owners will no longer be required to pay annual dues.
• The settlement applies only to the 19 named plaintiffs. All other Rainbow Lakes property owners must continue to pay dues under the existing Fair Share Plan (2016).
• The restrictions will also apply to any future purchasers of those properties.
The agreement will be finalized following the release of nonpayment liens, the filing of a stipulation of dismissal, and court approval.
Financial Considerations
As part of the resolution:
• The Club’s insurance carrier will provide a payment to partially compensate the plaintiffs for alleged damages.
• A portion of the payment will also help offset lost dues incurred by the Club.
Avoiding Trial
Club leadership stated that, after extensive review by the litigation committee, Board of Trustees, and legal counsel, the settlement was determined to be the most prudent course of action—avoiding the cost, time, and uncertainty of a trial.
Looking Ahead
With the legal matter resolved, the Board expressed optimism about the future, stating the community can now move forward with renewed focus and unity.
“With this matter behind us, we look forward to a bright future for the Rainbow Lakes community,” the notice concluded.
