Judge Bars Seating of New Director for Fabulous Inns

SAN DIEGO —  The election last week of a fifth director at Fabulous Inns of America, which was supposed to break a hopelessly deadlocked board, on Tuesday erupted into yet another court battle and the temporary suspension of the election.

Superior Court Judge James A. Malkus approved a request by two company directors and two shareholders and issued a temporary restraining order that prevents the new director from taking his post.

Malkus scheduled a hearing on how director Weston Anson, a La Jolla marketing consultant, was elected to the Fabulous Inns board of directors.

Director Joe Letson, one of those who asked for the temporary restraining order, on Tuesday criticized Fabulous Inns management for electing Anson at a meeting that Letson and fellow director Norm Caldwell thought had been postponed.

Only Chairman Jeffrey Krinsk and President David Yardley voted to elect Anson.

The election, said Letson, “is a violation of the bylaws and . . . it requires a majority of the remaining directors to fill empty seats. This was done in a cheap, under-handed, dirty-trick method.”

Krinsk countered that the meeting was “validly called.”

“I don’t believe Joe Letson would say that,” added Krinsk. “They were caught asleep at the switch . . . they are trying to place the blame elsewhere.”

Joining Letson and Caldwell to protest the election were shareholders Lear Simpson and Frank Ferreira, the company’s largest investor.