Marriott Timeshare Owners Fight Bid to Stay Class Action Lawsuit

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The plaintiffs in a Marriott timeshare class action lawsuit are fighting an attempt by Marriott to stop court action and wait for a state agency’s declaration.

Several defendants under the Marriott banner asked a Florida federal court to stay the court proceedings so that the state’s Division of Florida Condominiums, Timeshares and Mobile Homes can issue a decision on whether the Marriott Vacation Club violates state laws.

Marriott argues the court should let that agency render an opinion on two specific issues it has special competence to resolve.

Plaintiffs Beth and Anthony Lennen counter that while the Division does deal in the area of Florida timeshare law, it has no jurisdiction to adjudicate disputed issues like the ones Marriott seeks a declaration for.

They argue the division has no authority to make determinations regarding interpretations of contracts or matters of common law.

Marriott cannot force the plaintiffs to seek a remedy from the Division before they bring their claims in court, they argue. And in any case, they say the Division isn’t capable of granting them the relief they’re seeking.

The Lennens also argue that under the Florida Administrative Procedure Act, the Division is prohibited from issuing declaratory statements on pending litigation like this Marriott class action lawsuit.

They quote the Division’s stated policy that it does not render opinions on disputed matters, past events, and matters involving numerous timeshare purchasers.

The Lennens alleged in their May 2016 Marriott class action lawsuit that while a Marriott Vacation Club “timeshare” purchase purports to give the buyer both ownership of a timeshare and a beneficial interest in a land trust, it actually conveys neither of those things.

Defendants created the Marriott Timeshare Club in 2010 as a way to get revenue out of the many unsold and foreclosed timeshare properties they had on their hands after the 2008 market collapse, the plaintiffs claim.

Instead of getting a fractional ownership interest in a specific property that allows the purchaser to use that property for a certain amount of time per year, plaintiffs say that club members get “points” that they can use to reserve time at any Marriott Vacation Club property.

The plaintiffs claim that the Marriott Vacation Club arrangement violates Florida timeshare and racketeering laws. They allege the arrangement makes purchasers bear the usual burdens of timeshare ownership – costs like taxes, fees and title insurance – without giving the benefit of a real timeshare ownership interest.

Both Marriott and its co-defendant First American Title Insurance Co. have also moved for dismissal. Those motions are still pending while the court decides whether to defer to the Division.

The Lennens are proposing to represent two plaintiff Classes: one that includes purchasers of an interest in the Marriott Vacation Club program, and another that represents purchasers of Legacy Timeshare Estates.

The Lennens are represented by Christopher S. Polaszek of The Polaszek Law Firm PLLC, by Lucas A. Ferrara, Jeffrey M. Norton and Roger A. Sachar Jr. of Newman Ferrara LLP and by Soomi Kim.

The Marriott False Real Estate Timeshare Class Action Lawsuit is Lennen, et al. v. Marriott Ownership Resorts Inc., et al., Case No. 6:16-cv-855, in the U.S. District Court for the Middle District of Florida.

UPDATE: On Jan. 4, 2018, the plaintiffs in a class action lawsuit accusing a group of Marriott companies of selling improper ownership in real estate have asked a Florida federal judge not to dismiss Orange County, Fla., from the litigation.

UPDATE 2: On May 6, 2019, Marriott timeshare buyers recently requested Class certification in a lawsuit alleging that Marriott points program is a “scheme.”