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Manhattan Club Lawsuit
Below is a first person account of what transpired at the Aug. 29 court hearing. The author is plaintiff/owner attorney Jean Marc Zimmerman. Bottom line, Zimmerman is seeking access to the TMC owner list on behalf of Robert Tucker, an owner who ran but lost a bid to join the board Aug. 9. The judge agreed to rule on the merits of the request Dec. 12 in Manhattan.
Here is the attorney's account of the hearing:
On Wednesday, August 29, 2018, a hearing was held in New York State Supreme Court at which The Manhattan Club Association, Inc. (“TMC”) was required to show cause why it should not have to provide TMC timeshare owner (“member”) and former board candidate Mr. Robert Tucker with TMC’s membership list.
In advance of this hearing, on Monday, August 27, 2018, TMC filed papers with the Court opposing Mr. Tucker’s request and seeking dismissal of his case. TMC’s papers contend that Mr. Tucker was seeking the list for some improper purpose that TMC failed to specify (other than allegations that his counsel Zimmerman Law Group (“ZLG”), sought to use the list in a proposed litigation against TMC and its sponsors), and that he was not entitled to the list in any event because TMC’s governing document prohibits the list being disclosed directly to its members, but rather requires all use of the list to be controlled by TMC itself.
On Tuesday, August 28, 2018, ZLG filed papers responding to TMC’s arguments, which pointed out that in requesting the list, Mr. Tucker was acting in good faith, that neither he, nor ZLG, had animproper purpose, and that he was seeking to communicate with other TMC members to redress the wrongful conduct admitted to by TMC’s Sponsor (the Eichner Family and various related entities they control) in the Assurance of Discontinuance (“AOD”) entered into on August 14, 2018 with New York State Attorney General Eric Schneiderman.
ZLG included a copy of the AOD as part of its responsive papers and advised the Court that in addition to admitting having committed a variety of wrongs in connection with its management of TMC and associated timeshare sales, the Sponsor agreed to pay a $6.5M penalty, to take steps to remedy the such conduct, to sell its interest in TMC within three years, and be further barred from the timeshare industry in New York. ZLG advised the Court that the member complaints of fraud and other malfeasance resulting in the AOD included that the Sponsor: advised timeshare owners that rooms were unavailable for reservation/use by owners while the Sponsor simultaneously rented the same rooms online to the general public via sites like Expedia and Travelocity; charged timeshare owners yearly maintenance fees for a one week timeshare greater than the amount it would cost a timeshare owner to rent a comparable hotel room in NYC for one week; refused to allow timeshare owners to return their ownership interest to TMC and “walk away” without remaining liable for maintenance fees and real estate taxes; and refused to exercise TMC’s first right of refusal and decline to purchase units timeshare owners sought to sell or otherwise impeding owners efforts to sell their timeshares.
At the hearing, TMC’s counsel strenuously objected to ZLG’s papers, claiming that since TMC was not a party to the AOD, reference to the AOD in this action was improper and irrelevant. However, since, as ZLG pointed out, the Sponsor did not enter into the AOD in a vacuum, but rather because of its actions in operating TMC, and TMC’s counsel failed to cite to any legal authority refuting the case law and statutory authority cited by ZLG in favor of Mr. Tucker’s right to receive the list. The Court refused to dismiss Mr. Tucker’s complaint against TMC or deny his request for the membership list.
As regards the Court’s temporary restraining order (“TRO”) of August 13, 2018 staying all action by TMC’s Board, the Court observed that even if Mr. Tucker had been elected to the Board, since he would have been only one of seven votes, he could not have delayed or otherwise controlled board action. Accordingly, the court lifted the TRO.
As the Court had not had sufficient time to review all of the papers submitted by the parties in advance of Wednesday’s hearing, including the AOD, the Court scheduled another hearing on Mr. Tucker’s request for the list for December 12, 2018. Thus, ZLG accomplished what it set out to do, i.e., bring the wrongful conduct by TMC and its Sponsor to the attention of a Court on an expedited basis.
ZLG is considering additional steps to secure the membership list, so that the members can communicate with one another and remedy the wrongs that continue to exist at TMC without being beholden to TMC and its management to curate communcations.
Jeffrey W.
Last edited by jeff_reports on Sep 05, 2018 09:52 AM
I contacted several timeshare exit attorneys that I found online. I even watched some webinars so I did my homework. Would I recommend going this route? NO! Prices varied from $4500 to $6500. When I found someone who I felt had a good reputation I hired them but had conditions. I told them my max would be $4000 and that if they didn't accomplish this within 12 months I would receive my money back. They took my offer and I signed the contract. About 5 months later they gave me the news that they would take it but I would have to pay the next year's maintenance fees which weren't even due for 7 more months. I told them I did not want to pay one more cent to TMC. However because they offered something to me, they fulfilled their part of the deal so I was pretty much out of luck for getting my money back. They then wrote a letter to TMC stating that I would no longer pay my maintenance fees and that I was willing to give back the unit free and clear. I had already been on the magic buy back list that Lynn O'Donnell has for over 3 years. I am sure that like the other person who posted that she was on the list and recently contacted about give back, I would have been called too. The only difference is I paid $4000 and they are communicating with the attorney instead of me, even though it has been more than the year I contracted for. If I would have known the attorney general case was going to be settled, I would have waited and watched. When Zimmerman became involved I would have paid the $1200 he is requesting from those whom he will represent. If I hadn't sent so much good money after bad I would still do it but just can't and don't even care anymore .
Karen B.
Our of the blue, I too suddenly started out getting emails from a Marci Stewart - received 2 and each had a different email address. She says she wants to start a vacation rental business and wants to buy my timeshare. I have not replied other than to ask her which timeshare and she did not mention the name in the 2nd email. I only own 2 timeshare weeks and both are at the Manhattan Club and yet she never would name the resort. Has anyone else heard from this woman?
Gail J.
The attorney I am working through also requested my SS# so it is something she needs. If you are still unsure, call her number and see how she answers.
petep65 wrote:I am getting buy back requests from a Christine Stile stating she is a Financial Services Rep foTMC. Her address is in PA but phone # is NYC. Won’t send me any docs but wants my SS#. Scam?
Karen B.
Yes, I too received the call from Christine Stile from TMC Financial Services Dept. The TMC Financial Services Dept correspondence lists an address in East Stoudsburg,Pa. But has a (212) NYC area code phone no. I imagine you're speaking to her in an office inside TMC. She also requested my SS No. As they are now ready to do a "deedback". All of this was referred to my lawyer who will handle details. Just to show you how complex this operation is I also receive correspondence from an office in Sottsdale,Az as well as East Stroudsburg,Pa.. This is probably to evade NYC/NYS Tax and/or real estate regulations. Time Share is a real complicated,confusing "birds nest" of rules & regs. I bet most lawyers find confusing. I am leaving this behind & staying far away. If you want to vacation then just book your own hotel whenever &wherever you would like. There's no need to "own" your personal vacation hotel room. You don't really own it anyway.
Gerard S.
christine stile (tmc)??? marci stewart..........???
these people seem to have come out of the woodwork...so to speak.
i can understand not knowing who marci is.
but, who the hell is christine? i couldn't find her name on any tmc corporate listing, or did they just add her via bluegreen?
as usual, we owners remain in the dark. TRANSPARENCY, which hardly existed in the past, is now a thing of the past...gonzo. are these people performing some kind of AI feat..............offering to take (out of the darkest goodness of their fraudulent hearts) our shares back........FOR NOTHING..........and reselling them to future purchasers? that's a fine and mega-profitable deal for them while we lose all of our purchase equity....same ol', same ol': grind all the tmc owners into submission.
hang in there as long as you can, fellow owners. we MIGHT come out smelling much better than we currently do as in...............doo-doo. keep your shares (however you deem possible and necessary).....paying maintenance or not.
pax to all owners!
chris
Chris V.
There was supposed to be a claims administrator named, who would adjudicate claims of denied usage. Not sure who was supposed to choose/assign the claims administrator, or when that was supposed to happen. From what I've read, those who were denied usage or other usage problems would need to 'prove?' that indeed they were. I see this as problematic, since people probably didn't record or document reservation refusals or other problems getting reservations.
Dennis C.
There was no lawsuit. There was an investigation by the NYAG which ended upon payment of the $6.5 million and the issuance of an "Assurance of Discontinuance." I believe 50% of the fund is supposed to be paid to owners who were denied use of their units. Amounts unpaid from the initial 50% are added to the remaining 50% and distributed to all owners who are current with maintenance fees. That's all in the AOD. It's on the AG's website if you want to read it. I was told by the AG's office that the settlement administrator was the Better Business Bureau of NY. That was over a year ago...
Nathan Z.
Last edited by nathanz2 on Sep 12, 2018 12:42 PM
with the 14 to 18 thousand people's week (s) of ownership at TMC, the $6,500,000 should amount to about $10 to $30 per owner, most likely even much less than that. ha: don't spend it all in one place.
a total miscarriage of justice if i ever saw one...........a disgrace. shame on all who accepted this ridiculous SETTLEMENT...............???????
chuckn41 wrote:What is happening with the $6.5 m law suit settlement money? How is it (hopefully) going to be distributed??????
Chris V.