Kat Bryant  |  April 28, 2020

Category: Covid-19

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couple looking online at vacation rentals through TurnKey

Clients of TurnKey Vacation Rentals claim the company altered its refund policy when COVID-19 hit “in an effort to evade its contractual obligations.”

In the TurnKey class action lawsuit, Shane Cahill and Nye Peterson claim the company failed to return their deposits on properties that later became unavailable because of government-ordered measures meant to curb the spread of the coronavirus.

The TurnKey class action lawsuit cites the company’s guest agreement, which provides that “[i]n the rare event the Home that that you have reserved is for sale, is sold or is otherwise unavailable for any reason as determined by TurnKey, then TurnKey, in our discretion, may provide Guest with a comparable home at no additional cost to the Guest or cancel and refund the Guest’s reservation.”

However, the TurnKey class action lawsuit states the company informed both plaintiffs separately in mid-March that refunds would no longer be issued for cancellations.

Did you experience a cancellation and didn’t receive a refund for it? Get legal help here. 

Cahill, who resides in Montana, says he paid two deposits totaling $1,950.56 in January and March to reserve a TurnKey property in South Carolina for a week in April to attend his sister’s wedding.

On March 18, after the federal government temporarily banned gatherings of more than 10 people, he learned the wedding might be rescheduled; but when he inquired about changing his reservation, he claims he got no response from TurnKey.

Three days later, Cahill received an email from the company saying it had altered its cancellation policy to offer credit for a future stay rather than a refund, according to the TurnKey class action lawsuit.

Then, on March 31, another company email reportedly stated that TurnKey was automatically canceling his reservation because of local restrictions arising from the virus, but would give him credit for the amount he had already paid (less the housekeeping fee of $205) toward a future stay there.

couple checking into TurnKey vacation rentalHowever, when Cahill tried to reserve the property around the rescheduled wedding date in October, the company informed him it was already booked for that week, the TurnKey class action lawsuit states. This left him with no refund and no place to stay in October.

Peterson, the other named plaintiff, lives in Texas. In February, she reserved a TurnKey property at the Zona Rosa Ski Resort in New Mexico, for March 15-20, according to the TurnKey class action lawsuit. The filing does not state how much she paid up front.

As Peterson and her family drove toward New Mexico on March 15, she learned the ski resort had been shut down over coronavirus concerns and that her home state was considering a shelter-in-place order, the TurnKey class action lawsuit states.

She decided to turn around take her family home to be safe. She claims she was unable to reach TurnKey by phone to cancel her reservation, so she sent a text, which also went unanswered.

According to the TurnKey class action lawsuit, Peterson received an email from the company on April 5 saying she would receive no refund, only credit toward another stay up to 18 months in the future. However, she claims she has no use for that.

Austin-based TurnKey manages more than 5,000 rental homes in 21 states. Much like VRBO and Airbnb, its revenue comes from commissions paid by the homeowners.

The TurnKey class action lawsuit claims that the defendant changed its policy to protect those homeowners, but one homeowner refuted that in a statement to a local TV news reporter: “They’re taking advantage of this. We don’t know that any of us will be here next year, that any of the guests can take advantage of this credit. We cannot assure that. They cannot assure that.”

In addition, the TurnKey class action lawsuit states that “news reports indicate TurnKey has continued to offer properties for rent in municipalities that have prohibited vacation rentals due to the virus, despite knowing full well it will refuse to refund any monies paid once it inevitably cancels those reservations.”

The TurnKey class action lawsuit alleges breach of contract, unjust enrichment and conversion. The plaintiffs are asking for refunds of their reservation fees, plus damages and court costs.

Cahill and Peterson are represented by Randy Howry, Sean Breen, and James Hatchitt of Howry Breen & Herman LLP, Joseph Sauder, Lori Kier and Joseph Kenney of Sauder Schelkopf LLC and Daniel Herrera, Kaitlin Naughton, and Bryan Clobes of Cafferty Clobes Meriwether & Sprengel LLP.

The TurnKey Failure To Refund Class Action Lawsuit is Shane Cahill and Nye Peterson v. TurnKey Vacation Rentals Inc., Case No. 1:20-cv-00441, in the U.S. District Court for the Western District of Texas, Austin Division.

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