HOMEOWNER Q&A | OCTOBER 2024 UPDATE

What is happening now with the lawsuit filed in June 2024 against Black Butte Ranch regarding the sexual misconduct of Michael Woosley?

In June 2024, nine former employees of Black Butte Ranch filed a lawsuit against Black Butte Ranch Corporation, Black Butte Ranch Association, Michael Woosley and other associated individuals related to the sexual misconduct of Woosley. The lawsuit alleged a hostile work environment, sexual assault, intentional infliction of emotional distress, and negligence. In October 2024, four additional former employees joined the suit. Together all plaintiffs have demanded a total of $19.5 million for their claims.

Who is Michael Woosley?

Michael Woosley was a long-time server at Robert’s Pub and the Lodge. In 2022, a few employees came forward to report that they had been sexually harassed by Woosley, including inappropriate touching and comments. Woosley was terminated in July 2022 after an internal investigation into these reports. The Black Butte Police Department investigated the claims and provided evidence to the Deschutes County District Attorney’s Office. In 2023, Woosley was convicted of harassment and sexual abuse in Deschutes County Circuit Court and was sentenced to 30 days in jail.

How is Black Butte Ranch responding to the lawsuit?

The Black Butte Ranch Association Board of Directors and Black Butte Ranch leadership continue to work closely with our legal team. For many years, the Ranch has maintained insurance coverage for situations where litigation is involved. Our insurance carrier, Chubb, is providing a defense in this particular case, and has retained Barran Liebman, a Portland firm, to defend the matter.

Will insurance cover any judgments?

Black Butte Ranch’s insurance policy with Chubb is a declining balance policy (attorney fees reduce the available balance of the policy limits) with an initial coverage limit of $2 million. This means the policy will cover up to $2 million in attorney fees, expenses, and other payments related to the suit. Chubb has not asserted any “reservation of rights” on that policy, meaning there is no indication Chubb will not abide by the policy.

Are homeowners going to have to pay more dues in response to the lawsuit?

We do not know at this time what the outcome of this case will be. It is not possible to provide additional information yet to homeowners on questions about impacts of the suit, but protecting homeowner interests is the primary objective of our legal teams. We will keep homeowners apprised of any updates that may impact dues.

What will happen next?

Trial has been set for September 23, 2025, and is anticipated to last for 10 days. While litigation remains ongoing, the matter is likely to continue to appear in the news. During this time, please refer any inquiries from the media to the Ranch’s Chief Marketing Officer Kim Kohn at kkohn@bbranch.org. The Ranch and the BBRA Board of Directors will continue to provide timely updates to homeowners as these issues unfold.