Update on Lawsuit against RCI

As some know (...a few maybe even care), RCI members filed a class action suit against RCI in April, 2006. Alleged in the complaint was that RCI is directly renting out prime deposits and, in so doing, denying RCI members any "exchange" access to those same prime deposits. As in all complex litigation, progress has been slow in this case (Murillo vs. RCI). The situation may now be changing:

On July 8, 2008 a settlement conference was held in U.S. District Court in New Jersey, lasting much of that day. Another settlement conference is scheduled for 1:30 p.m. on July 15, 2008 in Federal Court in Newark, NJ.

It's certainly too early to draw any conclusions (and none of us here are actually in the courtroom there). Nonetheless, I find myself wondering why, if RCI truly feels they have done no wrong, they aren't all indignant and requesting a trial date. Instead, there are settlement conferences actively in progress; one has already been conducted and another will be held just 4 days from now.

Stand by, folks. Things could finally get very interesting in this matter, even to those who have just "yawned" about it (or ignored it entirely) for two years now...

I didn't know about this lawsuit, but I think that it is exactly what is happening to our timeshare trade-ins.

koda wrote:

I didn't know about this lawsuit, but I think that it is exactly what is happening to our timeshare trade-ins.

this lawsuit which started in 2006,has now taken 2 years of manuvering around a very delicate issue involving all timeshare sales, who many are sold under false and overly aggessive tactics.Who is responsible for some of the mess. the general partners or the on site personnal,and who profits when the units comeback to be resold over and over. Who does the buyer contact on site to do problem resolution? Some of these sales tactics are not much removed from buying merchendise at a flea market or over the internet. l am sure that by the time the dust settles and all the lawyers get paid the poor shnooks that are the owners will get a good screwing.

markusb4 wrote:

koda wrote:

I didn't know about this lawsuit, but I think that it is exactly what is happening to our timeshare trade-ins.

I hope we can have a lawsuit against Club Navigo for deception and misleading

anyone interested in filing a class action against Club Navigo (liki tiki)

charles671 wrote:

this lawsuit which started in 2006,has now taken 2 years of manuvering around a very delicate issue involving all timeshare sales, who many are sold under false and overly aggessive tactics.Who is responsible for some of the mess. the general partners or the on site personnal,and who profits when the units comeback to be resold over and over. Who does the buyer contact on site to do problem resolution? Some of these sales tactics are not much removed from buying merchendise at a flea market or over the internet. l am sure that by the time the dust settles and all the lawyers get paid the poor shnooks that are the owners will get a good screwing.

Actually, this lawsuit has nothing to do with unscrupulous timeshare sales tactics whatsoever. RCI is an exchange company, they aren't in the business of selling timeshares.

From what I gather, this lawsuit concerns RCI allegedly renting deposits to the public and not using those deposits for member exchanges.

Many RCI members have been complaining in the last several years of not getting quality exchanges when they deposited quality weeks, but these quality weeks seem to show up on other rental sites affiliated with RCI.

I think this is what the lawsuit boils down to.

who participates in any settlement? l have 3 timeshare properties in 3 different areas of the US,purchased at different times over the past 20years. l am always current with my maintenance fees,so they never can give me that excuse. please keep me informed if you need particulars. charleskatz@comcast.net

The Murillo vs. RCI lawsuit has nothing whatsoever to do with timeshare sales or selling tactics. The lawsuit solely addresses RCI (which is an exchange company...or is SUPPOSED to be an exchange company, anyhow...) use and disposition of prime DEPOSITS of weeks by RCI members. The dissatisfied members / depositors assert that they have been adversely impacted by RCI practices (most notably and specifically, the direct rental by RCI to the general public of the best deposits). The lawsuit does not name or address or concern any particular individiual resorts, clubs, ownerships, maintenance fee status, etc.

In any event, the RCI case is long ago filed, completed and much nearer to its end than to its beginning (which was 2+ years ago now). The plaintiffs are not looking for any additional input or participants to jump on the bandwagon at this late stage of the legal proceedings. The case is now in settlement negotiations.

I don't know how this thread got hijacked into mention of Club Navigo (whatever that is), but the two subjects have absolutely no relationship or relevance to one another.

now that l better understand the whole complex lawsuit,that it is not concerning the shady sales tactics,but byzantine structure of trying to arrange the exchange that you desire, i.e the manhattan club in nyc, never available. The only way this mess will ever be settled will be, when the appropriate government agencies start issueing the necessary legal papers and federal marshalls start serving them. l'm just getting to be a old grouch. charles671

charles671 wrote:

now that l better understand the whole complex lawsuit,that it is not concerning the shady sales tactics,but byzantine structure of trying to arrange the exchange that you desire, i.e the manhattan club in nyc, never available. The only way this mess will ever be settled will be, when the appropriate government agencies start issueing the necessary legal papers and federal marshalls start serving them. l'm just getting to be a old grouch. charles671

mike1536 wrote:

charles671 wrote:

now that l better understand the whole complex lawsuit,that it is not concerning the shady sales tactics,but byzantine structure of trying to arrange the exchange that you desire, i.e the manhattan club in nyc, never available. The only way this mess will ever be settled will be, when the appropriate government agencies start issueing the necessary legal papers and federal marshalls start serving them. l'm just getting to be a old grouch. charles671

I don't have a dog in the RCI lawsuit fight, however I would love to see a federal agency formed to protect consumers from all the lies and scams involved in the timeshare industry from developer sales to upfront fee resale scams to everything in between.

Laws needs to be enacted on a federal scale, not merely a state scale, to protect the consumer.

Take Florida for instance, the state of Florida wouldn't touch timeshares with a ten foot pole since the industry is humongous in that state and brings in millions in revenue, taxes and tourist dollars. The state is not concerned for the consumer, the state of Florida is for the developers and scam artists (specifically upfront fee resale scammers).

jayjay wrote:

I don't have a dog in the RCI lawsuit fight, however I would love to see a federal agency formed to protect consumers from all the lies and scams involved in the timeshare industry from developer sales to upfront fee resale scams to everything in between.

Laws needs to be enacted on a federal scale, not merely a state scale, to protect the consumer.

There are lies and deceit in all types of sales. It just seems that everyone wants to BELIEVE the TS developers and upfront fee companies.

How many times do you read about a person paying an upfront fee company to rent/sell their TS. After years of frustration and complaints, they go ahead and send more $$$ to another company because they were told "our compnay is different".

Unfortunately if a company asks for hundreds of dollars to list a TS for rental on their web-site, AND the listing is posted, there is no fraud, just an outrageous fee for something that a person could do themselves for a fraction of the cost

The companies that take upfront fee money then disappear into cyber-space are indeed crooks and should be prosecuted and laws already exist for this, BUT the problem is tracking down the offending people.

Shortly after I bought my first TS, I received a call offering me a lifetime of rental listing for one fee. The "saleswoman" became combative when I ask what her incentive was to rent my unit once I paid the fee. Needless to say I did not take her up on her offer. Maybe I was "blacklisted" because in all these years I've never received another call.

take a look back into florida real estate practices that go way back to maybe the end of the 19thcentury and well into the 20th. much real estate was sold that was not above the highwater mark, some people went to jail, the others moved out here to california and bought up land all over southern california. nothing changes,when it comes to land greed.

I was not aware there was a lawsuit against RCI about this issue but have been a long time member of RCI and have experienced increasing frustration in making exchanges, now I know why. I trade in top weeks and cant seem to get anything decent in exchange. Have even used the ongoing search for 11 months to no avail.

Does anybody have any news regarding the lawsuit other than what is at the top of this page?

since this lawsuit has crossed state lines,maybe individuals should contact there local US Attorneys office to see if the local office can be of any assistance. if there is a possible good public relations they will jump on it. with an election approaching every public official will become your best friend. do I sound cynical---better believe it====== charles671

charles671 incorrectly and belatedly notes: >> since this lawsuit has crossed state lines,maybe individuals should contact there local US Attorneys office to see if the local office can be of any assistance. if there is a possible good public relations they will jump on it.<< ===============================================

First of all, U.S. Attorney offices only handle matters (including ALL Federal criminal matters) which have been initiated by the U.S. Government and /or its agencies. Other Justice Dept. attorneys (who are not directly associated with any U.S. Attorney office) handle civil cases filed either by or against the U.S. Government. The RCI class action suit, however, fits NONE of these categories or criteria in any way, shape or form...

The RCI matter is a CIVIL (i.e., not criminal) case, filed by PRIVATE CITIZENS (i.e., *NOT* by any government entity) against a particular public company. Accordingly, this matter has nothing whatsoever to do with any U.S. Attorney office anywhere --- and it never will at any future time. The case is in Federal court simply because it is, by its very definition and nature, a multi-state matter and therefore of Federal jurisdiction; not confined to or involving any one particular state. Please refrain from dispensing further advice and guidance on legal matters about which (with no disrespect intended) you clearly have absolutely no understanding or knowledge whatsoever.

The RCI case is long since filed, argued and, in fact, is now probably nearly over. That ship initially sailed over two years ago and it's now MUCH too late for anyone to belatedly jump on that bandwagon now. With settlement discussions in progress, a settlement or decision will likely be forthcoming sometime in the months ahead...

douglass56 wrote:

Does anybody have any news regarding the lawsuit other than what is at the top of this page?

There is nothing further to report at this time, beyond that which has already been clearly stated. Settlement discussions continue. If no settlement agreement is reached, it will then be up to a judge to render a decision on the matter. In either case, this is very complex litigation and a FINAL resolution, although maybe now faintly in sight on the distant horizon, is still likely months away...

Next scheduled hearing date is October 01, 2008. There is no particular magic associated with (or projected for) this date --- it's merely the next small step forward in the legal proceedings....