Massanutten Resort, the large timeshare and recreation destination in Virginia’s Shenandoah Valley, has been the subject of several lawsuits over the past two decades. The most significant Massanutten Resort lawsuit in recent years was a condemnation case that ended in a $30.7 million settlement when Rockingham County took over the resort’s private water and sewer system. The resort and its parent companies have also faced a sexual assault suit tied to a spa massage, a federal satellite television fraud case, an Equal Pay Act claim from a former general manager, and hundreds of consumer complaints from timeshare owners.
The $30.7 Million Water and Sewer Condemnation
The largest and most recent case was Board of Supervisors of Rockingham County v. Massanutten Public Service Corporation, case number CL 23001337-00 in Rockingham County Circuit Court before Judge Andrew Baugher.1Virginia Lawyers Weekly. Water Sewer System Condemnation Dispute Settles After Three Years At stake was the private utility that served the resort community: a sewage treatment plant, related pumps, tanks, and equipment, and more than 200 miles of underground piping.
Residents had complained for years about high water rates and maintenance problems. Rockingham County formed the Massanutten Water and Sewer Authority in 2020 in response, and pursued acquisition of the system after that.2Augusta Free Press. Rockingham County Legal Wrangling Over Water in Massanutten Finally Over In February 2023, the county offered $25.8 million to buy the system. The Massanutten Public Service Corporation refused, saying the company was not for sale.3Daily News-Record. Massanutten Ratepayers Dispute Company’s Claims The Board of Supervisors then voted to file a condemnation petition under the county’s eminent domain authority.
The case entered a lengthy discovery phase that included a court-ordered inventory of every asset. That inventory turned up easements on eight properties that had not been accounted for, adding new parties and additional counsel to the litigation.1Virginia Lawyers Weekly. Water Sewer System Condemnation Dispute Settles After Three Years After more than three years of contested litigation, attorneys presented a settlement to Judge Baugher on September 18, 2025. A final order was entered on October 6, 2025, when the county took operational control of the system and paid the settlement funds.4WHSV. Agreement Reached in Massanutten Water System Dispute
The final number was $30.7 million paid to the Massanutten Public Service Corporation, falling between the utility’s $46 million demand and the county’s original $25.8 million offer.1Virginia Lawyers Weekly. Water Sewer System Condemnation Dispute Settles After Three Years Virginia Lawyers Weekly recognized it as the top settlement in Virginia in 2026. The county was represented by Paul B. Terpak and Scott D. Helsel of the Fairfax firm Blankingship & Keith.5Blankingship & Keith. Rockingham County Receives $30.7 Million Settlement in Massanutten Resort Condemnation
The Spa Sexual Assault Lawsuit
In 2018, Kristyn Lett sued Massanutten’s management company, Great Eastern Resort Management, in the U.S. District Court for the Western District of Virginia. The case, Lett v. Great Eastern Resort Management (No. 5:18-cv-71), stemmed from an August 2014 incident in which Lett alleged that massage therapist Wesley Veney sexually assaulted her during a hot stone massage at the resort’s spa. The complaint alleged Veney uncovered her from the waist down, fondled her, and kissed her on the mouth.6vLex. Lett v. Great Eastern Resort Management, Inc.
Lett brought the claim under respondeat superior, the doctrine that holds employers liable for employee conduct within the scope of employment. The resort moved for summary judgment. It pointed to its written Standards of Practice, Team Manual, and Code of Ethics, all of which prohibited sexual conduct during massages and required clients to remain properly draped.
On January 24, 2020, U.S. District Judge Elizabeth K. Dillon granted summary judgment for the resort. The court found Veney’s alleged conduct was “clearly not part of standard massage practice or any other service offered by the spa” and that his motives were “entirely personal,” placing the behavior outside the scope of his employment.6vLex. Lett v. Great Eastern Resort Management, Inc. Court records showed Veney was convicted of assault and battery in connection with the incident in 2015, and the resort said he was no longer employed there.7WHSV. Lawsuit Filed Against Massanutten Resort Over Alleged Sexual Assault
DIRECTV Satellite Signal Fraud
Massanutten sat at the center of a long federal fight over stolen satellite programming. In 1999, Randy Coley, through his company East Coast Cablevision, contracted to install and run cable television for the resort. Coley opened a DIRECTV account in the name “Massanutten” authorized to serve 168 hotel rooms.8U.S. District Court, W.D. Va. Sky Cable, LLC v. DIRECTV, Inc., Memorandum Opinion
By 2011, DIRECTV investigators found the service had been extended to more than 2,353 units across the resort, including bars, lobbies, the golf shop, and a waterpark, while Coley still paid only for the original 168. Field tests at 13 locations inside the resort confirmed the unauthorized rebroadcast. The district court found Coley liable for 2,393 violations of the Federal Communications Act, entering a $2,393,000 judgment and an initial $236,000 in attorneys’ fees.9U.S. Court of Appeals, Fourth Circuit. DIRECTV, Inc. v. Coley, No. 16-1920
Coley then engaged in what the court described as dilatory tactics to avoid paying, which forced DIRECTV into extensive post-judgment collection work. On appeal, the Fourth Circuit awarded DIRECTV an additional $57,295 in attorneys’ fees and $1,403 in costs for those collection efforts. Great Eastern Resort Corporation and Great Eastern Resort Management were named as defendants in the underlying multi-party action.
Equal Pay Act Claim From a Former General Manager
In 2008, Caroline B. Emswiler, the former General Manager of Massanutten, sued Great Eastern Resort Corporation and Great Eastern Resort Management under the Equal Pay Act of 1963. The case, Emswiler v. Great Eastern Resort Corp. (Civil Action No. 5:08CV00011), was filed in the U.S. District Court for the Western District of Virginia, Harrisonburg Division.10vLex. Emswiler v. Great Eastern Resort Corp.
Emswiler alleged she had been paid less than three male successors, Richard “Clay” Rice, Mak Koebig, and John Loeblich, who took over parts of her duties after her retirement. The resort said that after her departure, a corporate reorganization split her former responsibilities across multiple positions with different roles, reporting structures, and oversight. On March 17, 2009, the court granted summary judgment for the defendants, holding that Emswiler had not shown the successor positions were “substantially equal” to her former role in skill, effort, and responsibility, a required threshold for an Equal Pay Act claim.
Timeshare Owner Complaints
Formal lawsuits are not the only legal exposure the resort has drawn. Massanutten’s Better Business Bureau file shows 334 complaints over a recent three-year period, 154 of them closed in the most recent 12 months. Of the 334, only 11 were categorized as “Resolved.”11Better Business Bureau. Massanutten Resort Complaints
The complaints follow a pattern. Owners report they cannot exit their contracts or deed their units back to the resort. Many describe being locked into perpetual maintenance fee obligations for property they can no longer use or afford. Others say they sat through high-pressure, multi-hour sales presentations and were misled about resale value, with some told the purchase was a “real estate investment” that could be canceled at any time.12Better Business Bureau. Massanutten Resort BBB Profile
The resort’s responses run along a single line. Because owners hold deeded property, Massanutten says they are responsible for selling or transferring their own ownership interest. The resort states it has no buy-back program and no department that helps owners get out of their contracts. It typically points dissatisfied owners back to their signed purchase documents and to the American Resort Developers Association Resort Owners Coalition website for resale resources.
If you are still inside the statutory cancellation window, Virginia gives you a way out. Under the Real Estate Time-Share Act, a purchaser has a non-waivable right to cancel a timeshare contract until midnight of the seventh calendar day after signing, with notice delivered by certified mail.13Virginia Code Commission. § 55.1-2221 – Cancellation of Contract Once that window closes, the resort’s position is that the only exits are a private sale, a trade, or foreclosure for nonpayment.
Which Entity Actually Gets Sued
Massanutten Resort is not a single company. Great Eastern Resort Management, Inc. runs daily operations. Great Eastern Resort Corporation is the developer, handling construction and timeshare sales. Both are wholly owned by The Resorts Companies, Inc. A subsidiary called Peak Construction acts as general contractor on development projects. The Massanutten Public Service Corporation, the defendant in the condemnation case, owned the water and sewer system.10vLex. Emswiler v. Great Eastern Resort Corp. Which entity appears as defendant in any given case depends on which arm of the business was involved in the dispute.