Bedgood et al v. Wyndham

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.

Dec. 19, 2023 – Published opinion issued by the 11th Circuit (authored by Hon. Kevin C. Newsom).

This decision was highly favorable to consumers. The Court affirmed the decision of the lower court ‘s rejecting Wyndham Vacation Resorts’ motion to compel arbitration of a consumer’s timeshare dispute based on the developer’s admitted 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.