Business

Charlotte golf club lawsuit over a $20 million-renovation plan gets resolved

A Charlotte golf club member near the Pinecrest neighborhood has dropped a lawsuit challenging leadership decisions over a $20 million clubhouse renovation, according to North Carolina Business Court records.

Edwin Ham sued Carolina Golf Club in August following a dispute over decision-making authority at the club. The central legal question was whether the board of governors or the club’s voting members holds the ultimate power to authorize major capital projects and debt.

Ham dropped the suit Thursday. The move follows a Dec. 11 ruling by Business Court Judge Todd Brown, who denied a preliminary injunction that Ham sought to block the board from increasing debt and admitting new members without a full membership vote.

The Carolina Golf Club operates as a member-governed nonprofit. Under this structure, members elect a board of directors to manage daily operations and execute decisions approved by the membership.

The legal friction began last year when the board proposed a massive renovation to expand clubhouse amenities in early 2024. Ham’s lawsuit alleged the project represented a fundamental shift in the club’s identity — transforming a traditional golf-centric club into a country club focused on non-golf activities.

Financial concerns further fueled the dispute.

The board initially told members the first phase would not exceed $17.5 million in May 2024. Based on that estimate, the board persuaded members to approve an $18,750 assessment per person. However, the lawsuit claimed this approval was secured through “misleading information.”

Seven months after the initial approval, members were informed that costs had surged by an additional $5.8 million. To cover the gap, the board requested another fee of more than $3,700 per member and raised monthly dues by $75 for a two-year period.

In June, voting members rejected the second assessment in a 229-166 vote, a move the lawsuit characterized as a loss of confidence in the board’s management.

Despite this rejection, the board moved forward with plans to take on $2 million in new debt and to allow for more than 500 members to generate more revenue. The club had a “soft cap” to keep membership at 500 people through a policy.

While the board maintained these actions were within its authority, Ham argued they undermined the will of the membership.

In mid-July, Ham and nearly 60 other members called for a special meeting to strip the board of its unilateral power. They proposed amendments that would require a majority member vote for any decision to exceed 500 members or to take on more than $1 million in debt.

Though the North Carolina Nonprofit Act requires organizations to hold requested meetings within 30 days, the club’s efforts to reform its bylaws stalled.

On Aug. 8, the board’s legal counsel intervened, asserting that members lacked the authority to amend governing rules.

In its October response to the suit, the club maintained that its rules grant the board of governors exclusive control over bylaw changes. Leadership also noted that, despite the legal friction, a majority of members voted to retain the current board during a separate special meeting.

As of Monday, Ham and the club had not responded to requests for comment.

About Carolina Golf Club

Located on Olde Steele Creek Road, the Carolina Golf Club is an invitation-only institution with deep roots in the region.

The course was built in 1929 by renowned Scottish architect Donald Ross on what used to be a dairy farm. Ross is considered one of the most important figures in golf, and the club is frequently praised for staying true to his traditional design style.

Chase Jordan
The Charlotte Observer
Chase Jordan is a business reporter for The Charlotte Observer, and has nearly a decade of experience covering news in North Carolina. Prior to joining the Observer, he was a growth and development reporter for the Wilmington StarNews. The Kansas City native is a graduate of Bethune-Cookman University.
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