Diamond Resorts v Wesley Financial Group, LLC

Case Number: 3:20-cv-00251

Last Updated: November 17, 2020

Status

Pending

Location

USDC, Eastern District of TN (Knoxville)

Presiding Judge

District Judge Clifton L Corker

Date Filed

06/08/2020

Highlights

Case Posture

Claims:

Diamond asserts claims of violations of the Lanham and Tennessee Consumer Protection Act against Wesley Financial Group and its owner, Charles McDowell, III (collectively, Wesley).

Posture:

Diamond’s complaint is pending a ruling on Wesley’s motion to dismiss Diamond’s claim for violation Tennessee Consumer Protection Act.

Summary:

Diamond alleges that Wesley falsely advertises a guaranteed method of cancelling Diamond owners’ contracts with Diamond, however, Wesley cannot deliver on this promise. According to Diamond, Wesley requires Diamond owners to pretend that Wesley is not assisting them in the cancellation process. Diamond alleges that Wesley discourages Diamond owners to retain attorneys, but instead ghostwrites letters to Diamond requesting cancellation. When this does not work, Diamond alleges that Wesley induces the owners to stop paying Diamond, exposing the Diamond owners to foreclosure, a money judgment credit score impairment “or worse.”.

Selected Events:

On 7/31/20, Wesley filed a motion to dismiss Diamond’s claim for violations of the Tennessee Consumer Protection Act (Count Two), on the basis that the Act’s scope is limited to consumers, and Diamond lacks standing to assert any violation thereof.

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Docket link

[0] Docket

Operative Complaint

[1] COMPLAINT FOR INJUNCTIVE RELIEF AND DAMAGES

Critical Orders

Critical Briefs

[30] Wesley’s Reply In Support Of Motion To Dismiss Count II

[29] Plaintiffs’ Response In Opposition To Defendants’ Motion To Dismiss Count II

[25] Defendants’ Motion To Dismiss Count II

Transcripts

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Parties

Plaintiffs:

DIAMOND RESORTS U.S. COLLECTION DEVELOPMENT, LLC., DIAMOND RESORTS HAWAII COLLECTION DEVELOPMENT, LLC, DIAMOND RESORTS MANAGEMENT, INC.

Plaintiffs’ counsel:

Greenspoon Marder, PA; local counsel Woolf, McClane, Bright, Allen & Carpenter, PLLC

Defendants:

WESLEY FINANCIAL GROUP, LLC, CHARLES MCDOWELL, III

Defendants’ counsel:

Neal & Harwell, PLC