Norman Zwicky et al. v Diamond

Case Number: 2:20-cv-02322

Last Updated: May 29, 2023

Status

Pending ruling fixing sum of Timeshare Owners’ attorney fees pursuant to settlement

Location

Federal District Court, District of Arizona

Presiding Judge

Judge Humetawa

Date Filed

08/21/2020

Highlights

Pursuant to Diamond’s settlement with class of timeshare owners, $13 million settlement fund established.

Case Posture

Claims:

Violations of federal and state RICO, Breach of Fiduciary Duty under AZ Timeshare Act

Posture:

Setted; pending approval of fees to be awarded to class counsel.

Summary:

Members of Premiere Vacation Collection Owners Assoc. (one of 8 collections) sued for board abuse, intentional underestimation of maintenance fees.

Claims: Class Action – RICO, AZ RICO, Breach of Fiduciary Duty under AZ Timeshare Act

Related: Zwicky v. Premiere Vacation Collection Owners Ass’n, 418 P.3d 1001, 1003 (Ariz. Ct. App. 2018) “corporate books and records inspection action” – disclosure for purposes of lawsuit allowed

STATUS: Class approved for purposes of settlement after mediation w/ Edward Infante; pending renewed motion for preliminary court approval of Settlement re sum of attorney fees in addition to the approved $13M Settlement Fund

Selected Events:

November 15, 2022 Order [136] for preliminary approval of settlement granted in part, denied as to attorney fees

June 30, 2021 Order [102] on M2D: denying in part (RICO viable against DRI and DRMI, Magdos and Wheeler, breach of fiduciary duty viable against Magdos and Wheeler, reject “standing” defense, SOL equitably tolled, directors and officers Magdos/Wheeler owe fiduciary duty) and granting in part (dismissing ILXA, Palmer and Cloobeck)

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Docket link

Operative Complaint

Critical Orders

Critical Briefs

Transcripts

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Parties

Plaintiffs:
Norman Zwicky, individually and on behalf of all others similarly situated

Plaintiffs’ counsel:
Jon Laurence Phelps and Robert Martin Moore of Law Offices of Phelps & Moore PLC
Edward Louis Barry of Law Office of Edward L. Barry

Defendants:
Diamond Resorts Incorporated, ILX Acquisition Incorporated

Defendants’ counsel:
Baker & Hostetler LLP; Gallagher & Kennedy PA

Defendants: Linda Riddle TERMINATED: 04/15/2021

Defendants’ counsel: Brandon T Crossland, Julie Singer Brady, Yameel L Mercado Robles of Baker & Hostetler LLP; Mark Andrew Fuller of Gallagher & Kennedy PA

Defendants: Unknown Parties