11.	COMMITMENTS AND CONTINGENCIES

The Company has been named along with multiple parties in lawsuits filed by certain owners of units and fractional interests in the project formerly known as The Ritz-Carlton Club and Residences, Kapalua Bay. The lawsuits were filed in the Circuit Court of the Second Circuit, State of Hawaii on

May 23, 2011,

June 7, 2012,

and

June 19, 2013.

The lawsuits allege deceptive acts, intentional misrepresentation, concealment, and negligent misrepresentation, among other allegations and seek unspecified damages, treble damages and other relief. The Company disagrees with the allegations and has been defending itself.

September 2018,

the defendant parties reached a settlement with the plaintiffs in the

May 23, 2011

lawsuit and

two

of the

ten

plaintiffs in the

June 7, 2012

lawsuit. Terms of the settlement are confidential. The Company made an undisclosed payment toward the settlement in

October 2018.

October 2018,

the Company reached a settlement with the

eight

remaining plaintiffs in the

June 7, 2012

lawsuit. Terms of the settlement are confidential. The Company’s insurance carrier will be making an undisclosed payment toward the settlement. In addition, the Company’s insurance carrier will be reimbursing the Company for certain of the defense costs incurred in the

June 7, 2012

lawsuit.

The trial for the

June 19, 2013

lawsuit is scheduled to begin on

January 14, 2019.

The Company is presently unable to estimate the amount, or range of amounts, of any probable liability, if any, related to this lawsuit and

provision has been made in the accompanying financial statements.

In addition, from time to time, the Company is the subject of various other claims, complaints and other legal actions which arise in the normal course of the Company’s business activities. The Company believes the resolution of these other matters, in the aggregate, is

not

likely to have a material adverse effect on the Company’s financial position or operations.