Novelli Lawsuit Thrown Out
Ray Novelli and companies he either owns or controls sued Coast to Coast in Orange County, California. He alleged basically that Coast was the cause of all of his financial problems.
Coast presented evidence suggesting that Mr. Novelli's problems resulted from
many members already knew about Mr. Novelli's criminal convictions for mail fraud and bank fraud. We didn't know about his flight from the law under the assumed name "Jack Bain", and bond jumping.
Judge Smith concluded, after Mr. Novelli's attorney finished presenting his case, that the lawsuit would be considered a "non-suit". He also entered a judgment against the plaintiffs based, at least in part, on the "doctrine of unclean hands". This probably means that Mr. Novelli will have to pay all court costs and attorney fees associated with his apparent "grab for cash".
An Arizona Judge concluded in a 1996 "Finding of Fact" that Mr. and Mrs. Novelli were not credible witnesses. It is not surprising that this California judge might have reached that same conclusion.
The plaintiffs (Novelli companies) seem to have limited choices now - either pay the fees and court costs, appeal, or file bankruptcy.
Members are waiting for the "Other shoe to drop". How does this sound: a company in bankruptcy (Ohio, etc.), taken over by another company that looks like it might file bankruptcy (Travel America) owned by a person who has been involved in at least 17 other bankruptcies (some of which have been dismissed or abandoned under unfavorable circumstances). This is how it looks to some members and probably some creditors.
Mr. Novelli either owned or controlled Travel America, All Seasons, Apollo Group, First Nationwide, Revcon Motorcoach, the Schulz Family Trust, Adventure Resorts of America, Thousand Adventures, Inc. (of Michigan, Ohio, Mississippi, and Alabama), Cypress Park, American Holidays Resort, Hidden Springs Corp., and Ponderosa Park Resorts, and others.