Wyndham

Bedgood et al v. Wyndham

Case Number: 6:21-cv-00418

Last Updated: December 26, 2023

Status

Consumers may proceed to obtain class certification for their claim that their timeshare contracts are invalid.

Location

FL MD

Presiding Judge

Judge Byron, MJ Irick

Date Filed

03/03/2021

Highlights

ONE TO WATCH: Prospective class action to cancel contracts containing invalid AAA clauses. The 11th Circuit Court of Appeals affirmed the US District Court, Middle District of Florida’s ruling in favor of timeshare owners denying Wyndham’s motion to compel arbitration.

Case Posture

Claims:

Prospective Class Action to cancel contracts containing invalid AAA clauses.

Posture:

Published opinion issued by the 11th Circuit (authored by Hon. Kevin C. Newsom).

This decision was highly favorable to consumers. The Court affirmed the lower decision’s rejecting Wyndham Vacation Resorts’ motion to compel arbitration of a consumer’s timeshare dispute based on the developer’s failure to comply with the AAA rules:

“Before us, [Wyndham] asserts that  the  AAA  ‘will comply with any court orders issued from litigation involving the parties to the dispute’—the point apparently being that a court need only issue an order demanding that the AAA administer the arbitration. But [Wyndham Vacation Resorts] is missing the point.  It  is ineligible to move to direct arbitration … because it hasn’t been “aggrieved”   by any ‘failure, neglect, or refusal’ on the part of [timeshare owners] Bedgood, Brandon, or Heil-Brandon to arbitrate.”

Accordingly, the Court affirmed the district court’s denial of [Wyndham Vacation Resorts’] motion to stay litigation and direct arbitration as to plaintiffs Bedgood, Brandon, Heil-Brandon, Mathews, Smith, and Harper. These plaintiffs may proceed to litigation of  their claims against Resorts.  … [W]e  cannot say that the district court erred in concluding that [Wyndham Vacation Resorts’]  refusal to comply with the AAA’s generally applicable policies disqualified [Wyndham Vacation Resorts] from seeking a stay of litigation or an order directing the parties to arbitration [as to owners with Wyndham contracts].”

Remanded as to timeshare owners who had entered into contracts with two other entities: Wyndham Resorts Development Corporation and WorldMark, the Club. Presumably these owners will go to arbitration and not join a prospective class action.

 

Summary:

Owners who entered into contracts with Wyndham Vacation Resorts may proceed in the US District Court, Middle District of Florida to move the court (Judge Byron) for class certification of their claim that Wyndham’s timeshare contracts are invalid.

Selected Events:

December 19, 2023: Opinion issued on appeal affirming in part order denying Wyndham’s motion to compel arbitration.

May 15, 2023: Parties’ respective Supplemental Briefs addressing questions posed in the Court’s April 28, 2023 Order.

April 21, 2023 Oral Arguments:  22-11504 Charles Bedgood, et al. v. Wyndham Vacation Resorts, Inc. et al., Appellants 2023-04-21

***Click here to Listen to Oral Arguments on Appeal*** – Respondent Timeshare Owners’ Counsel Howard Prossnitz, Esq. begins his arguments at mark 30:30.

September 7, 2022 Wyndham’s Reply Brief

August 27, 2022 Timeshare Owner’s Respondent’s Brief

July 12, 2022 Wyndham’s Opening Brief appealing the ORDER denying Wyndham’s motion.

March 30, 2022 ORDER [57] reversing Magistrate Judge’s Report & Recommendation to grant Wyndham’s motion to compel arbitration, effectively denying Wyndham’s motion.

 

Parties

Plaintiff: Charles Bedgood, et al

Plaintiffs’ Counsel:
Howard B. Prossnitz, Esq
Adam Szulczewski, Esq.

Defendant: Wyndham Vacation Resorts

Defendants’ Counsel:

DLA Piper LLP
David S. Sager
J. Trumon Phillips

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