NEW YORK, NY (December 12, 2013) — A federal judge on Tuesday, December 10, 2013, denied a motion to dismiss a consumer class action lawsuit alleging Marriott Resorts Inc. (“Marriott”) forces timeshare purchasers to obtain worthless title insurance. The case, entitled McIntyre v. Marriott Ownership Resorts, Inc., et al., Case No. 13-80184-Civ-RNS, is presently pending in the United States District Court for the Southern District of Florida.
The ruling, by U.S. District Judge Robert N. Scola, allows the case to proceed to discovery and class certification. In his decision, Judge Scola denied the defendants’ motion on plaintiffs’ claim of unjust enrichment and permitted plaintiffs an opportunity to replead an alternate claim under Florida’s Vacation Plan and Timesharing Act, holding that “the Marriott Defendants’ alleged misrepresentations about the necessity of purchasing title insurance as a component of purchasing the timeshare are fairly construed as a misrepresentation regarding the promotion of the timeshare plan.”
The class action complaint alleges that, as part of the sales process for timeshares, Marriott requires purchasers to obtain title insurance for their fractional shares and, through a Marriott-owned subsidiary, provides that coverage for an additional fee. Plaintiffs allege that because Marriott purchased and developed the underlying real estate, and created the timeshare estates on that property, title insurance for original purchasers was unnecessary and superfluous to the protection already afforded under the special warranty deeds they received. In sum, plaintiffs allege that Marriott takes advantage of timeshare purchasers by requiring them to purchase something that appears legitimate but serves no legitimate purpose other than to increase Marriott’s profits on the sale.
Potential class members and others interested in learning more about this case or similar actions, may contact Newman Ferrara partner Jeffrey M. Norton by email ([email protected]) or call (212) 619-5400. A copy of the Marriott Complaint can be found here and a copy of Judge Scola’s order can be found here.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.
Newman Ferrara LLP
Jeffrey M. Norton
1250 Broadway, 27th Fl.
New York, NY 10001
Tel: (212) 619-5400
PRESS RELEASE SOURCE: Newman Ferrara LLP