Throughout its early history, Rugby was beset with lawsuits over land titles. While Cyrus Clarke had obtained options on nearly of land, many of the Plateau's Appalachian natives grew suspicious of Clarke and refused to sell their property. This slowed the colony's early development, and as the lawsuits dragged on, many colonists gave up and moved away. Furthermore, Smith, who had selected the townsite, had ignored the site's poor soil in favor of its potential as a mountain resort. Rugby's main resort hotel, the Tabard, was forced to close due to the typhoid outbreak in 1881, however, and burned down altogether in 1884, halting Rugby's burgeoning tourist economy and damaging the Board of Aid's credit.