Submitted photo A dispute over fees has led to a lawsuit by Lily Dale Assembly.

The Lily Dale Assembly wants a leaseholding duo to shut down businesses they are allegedly operating and leave the campus.

The assembly filed suit in state Supreme Court Aug. 18 to get Robert Reuther and Danielle Reuther off the property.

According to the lawsuit, the spiritualist community agreed to lease property on Fourth Street to the Reuthers in 2015. They also became members of the community.

The Reuthers began operating a guest house there and were charged an annual business and licensing fee of $1,000, as allowed in Lily Dale’s bylaws, the lawsuit continues.

However, it alleges, the Reuthers did not pay the fee in 2020 or 2021, or for this season, either. Lily Dale’s lawyer sent them a July 21, 2021, letter demanding the payment of all overdue fees, with interest, within 30 days. The letter stated that failure to do so could lead to the assembly terminating the lease agreement.

In addition, the lawsuit also alleges the Reuthers improperly operated a boat ride business, in violation of Lily Dale’s rules.

The Reuthers never did pay their fees and the Lily Dale Board of Directors voted to terminate their membership Feb. 8. The boat business also factored into the decision.

The Reuthers’ lawyer, Olivia Paulo-Lee, subsequently sent Lily Dale a letter on May 18 acknowledging the $3,000 bill is unpaid and will not get paid.

Because of that failure to pay up, Lily Dale states in its legal action, the Reuthers are in breach of agreement and can be kicked out.

Lily Dale’s lawsuit asks the court to stop the Reuthers from operating their guest house, or returning to the assembly campus. It also seeks an award of legal fees and costs associated with the suit.

Paulo-Lee’s May 18 letter tells the Reuthers’ side of the story.

She alleged the Lily Dale board “is solely targeting my clients simply because they have questioned the basis for which the board is charging and unilaterally raising a business or license fee.”

Paulo-Lee also alleged that none of Lily Dale’s bylaws, rules or regulations that she has reviewed, permitted the charge of a business or licensing fee.

“My clients have been cast in a false light and intentionally defamed to the Lily Dale community by the board, and they simply want their membership restored and to live peacefully within Lily Dale,” she stated.

Paulo-Lee sought to get the board to reinstate the Reuthers’ membership and stop interfering in the business of the guest house.

Lily Dale’s lawsuit was the apparent reply.