Marriott Timeshare Owners Say Fla. County Can’t Dodge Class Action

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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.

Plaintiffs Anthony and Beth Lennen claim Orange County breached its statutory duties by recording and indexing invalid deeds.

They claim Orange County “acted either as a willing or oblivious agent in Marriott’s and First American’s nearly decade-long scheme to sell illusory real property interests to tens of thousands of would-be timeshare purchasers.”

According to court documents, the First American defendants include First American Trust FSB, First American Title Co. and First American Financial Corporation. The Marriott defendants include Marriott Ownership Resorts Inc., Marriott Resorts Hospitality Corporation, Marriott Resorts Travel Company Inc. and Marriott Resorts Title Company Inc.

Orange County argued that the claims against it should be dismissed because the plaintiffs were barred from adding the county as a defendant in the Marriott timeshare class action lawsuit because they did not seek leave from the court to do so.

Even if the court finds that Orange County was properly named as a defendant in the Marriott class action lawsuit, Orange County argues that it had no duty to assess the validity of the deeds prior to recording them and therefore cannot be negligent. Further, Orange County claims that, even if it was negligent, it is protected by sovereign immunity.

The Lennens disagree with Orange County’s arguments, claiming they each “lack merit.” They allege that they were not required additional leave to name Orange County as a defendant after complying fully with pre-suit notice.

Further, they maintain the county does have a statutory duty to record and index instruments for official records such that it provides sufficient notice for people who are searching the records to track the memorialized legal activities. They also argue that sovereign immunity does not attach in cases of negligence in carrying out the statutory duty of recording and indexing public records.

The Lennens filed the Marriott timeshare class action lawsuit in May 2016, claiming that the defendants violated Florida racketeering and timeshare laws by selling points-based timeshare products to consumers that falsely convey title to timeshare estates.

According to the Marriott class action lawsuit, Marriott timeshare purchasers take on the burdens associated with property ownership, such as title policy premiums, maintenance fees and taxes, but do not receive the benefits usually associated with timeshare ownership.

Marriott attempted to stay the Florida timeshare class action lawsuit to wait for a declaration from the state’s Division of Florida Condominiums, Timeshares and Mobile Homes. The plaintiffs fought against the stay, claiming the agency did not have jurisdiction to adjudicate the disputed issue. Marriott’s bid for the stay was denied.

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

The Marriott Timeshare Class Action Lawsuit is Anthony Lennen, et al. v. Marriott Ownership Resorts Inc., et al., Case No. 6:16-cv-00855, in the U.S. District Court for the Middle District of Florida.

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