Order Overruling Demurrer

Drake v Wyndham

Wyndham demurred to the timeshare owners’ claims of fraud and breach of fiduciary duty on the grounds that the complaint was timebarred.

The Court disagreed, and found that although the Drakes purchased the timeshare more than three years ago, the Drakes were previously able to book time at the resort and were not aware of the falsity of the representations until October 2018, within the statutory period to bring the claims. The timeshare owners sufficiently alleged that at that time, they attempted to reserve a Monterey timeshare unit but were unable to do so, in spite of the fact that the general public could make a reservation at the same location. They alleged that “prior to the discovery of Defendants’ fraud, ‘plaintiffs were diligent in attempting to book vacations and were able to do so.” Accordingly, the delayed discovery rule applied.

The Court also rejected Wyndham’s challenge to the timeshare owners’ Declaratory Relief cause of an action because an actual controversy ripe for determination exists: The timeshare owners allege that they “have ceased payments to defendants and are in default under their Purchase Agreement with defendants … As a result of plaintiffs’ non-payment the defendants have declared a default, suspended the plaintiffs [sic] membership and refused them access to the time-share property.”

Click to view: Drake v Wyndham Notice of Ruling on Demurrer

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