PHILIPSBURG--On behalf of Timeshare Owners at Caravanserai Association (TOCA) and ten individual owners of timeshare units, attorney-at-law Martyn Schellekens told The Daily Herald in an invited comment that Friday’s ruling by the Court of First Instance in favour of his clients formed “a very good foundation for the proceedings on the merits” and could “set a precedent” for others in the same situation.
The latter was said in response to what the ruling could mean for other timeshare owners, as approximately 2,200 timeshare owners were affected by Alegría Real Estate B.V.’s purchase of the Caravanserai property through a Scotiabank public auction in August for US $14 million.
The TOCA group represents 62 people who together claim to have lost $1.5 million in advance rent payments.
Schellekens and his Lexwell Attorneys at Law colleague Mark Kortenoever successfully argued that rental laws apply to the timeshare owners’ agreements. This was a preliminary ruling, Schellekens explained, and a ruling in the proceedings on the merits may take another eight months to a year. In the meantime, the preliminary ruling in favour of the timeshare owners defines what Alegría has to abide by.
The proceedings on the merits will continue with written procedures: Alegría will submit a written defence, followed by a statement of reply on behalf of the timeshare owners and, finally, another statement of rejoinder. At that time, the final ruling is expected.
“My clients and I are happy about the ruling,” Schellekens said. “The client is happy with the positive decision in favour of its members regarding the great injustice” inflicted by Alegría.
As reported in Saturday’s newspaper, the same group lost a previous injunction in November 2014. The association then filed a new case in June in a renewed effort to get their units back. This time, the Court ruled in the timeshare owners’ favour, as it held their agreements closed with the resort’s former owner Kildare, its subsidiary company Endless Vacation, or any other, to be rental agreements, which are protected by law.
The Court ordered Alegría to allow timeshare owners access to their properties within five days, providing they pay the required maintenance fees. In case of non-compliance, Alegría would have to pay a daily fine of $1,000 per TOCA-member, to a maximum of $25,000 per member.
The resort owner was further ordered to pay the 10 individual owners an amount of $27,589 in total, with interest, for incurred damages until the date the petition was filed. Alegría also will have to pay the cost of the legal proceedings.
Other timeshare owners have told this newspaper in the past that following the takeover, people had scrambled to decide on how to move forward, but had no organised way of contacting each other.
One timeshare owner pointed out that in the United States, ownership would have been a matter of public record and the timeshare owners would have been able to contact each other more easily. The same person said he and a group were consulting a lawyer and considering options.
