Timeshare is big business in South Carolina and it is said that the timeshare industry has secured $2.4 billion in spending across the state in 2015. Accordingly it also provided in excess of 19,000 jobs, $818 million in wages, and $130 million in tax revenue.
In Charleston USA a federal judge has asked for some guidance from the South Carolina Supreme Court regarding complex timeshare matters.
The case has had its difficulties as it revolves around alleged violations of the 1978 law created to regulate the timeshare industry.
The results are in and the justices have unanimously agreed that timeshare consumers can sue timeshare sellers in South Carolina over the alleged violations. This is because they say that the word of the law is clear and unambiguous.
The timeshare companies involved in the verdict had argued that complaints from the consumers should be dealt with by the organisation S.C. Real Estate Commission and not judges and juries and they were hoping for a different outcome, when the federal judge made this request.
Unfortunately the business of timeshare is also rife with complaints and dissatisfaction from its consumers.
The most recent mentioned dispute has involved Spinnaker Resorts Inc.’s Bluewater by Spinnaker on Hilton Head. It is said that a couple who forked out, roughly, $26,000 for an interest in the 86-unit property, sued the developer in Charleston in 2015. They alleged the seller hadn’t registered as required under the S.C. Vacation Time Sharing Plans Act when the deal closed. Through this process the couple are seeking a full refund and asking that their contract is declared null and void. A U.S. District Court Judge, P. Michael Duffy stopped a federal lawsuit last year, however refused Spinnaker’s request for dismissal, he said that needed to clarify some legal points involving state matters. The Supreme Court agreed to “certify” three questions about the S.C. Real Estate Commission’s authority in enforcing the timeshare law. The justices also expanded their inquiry to include litigation involving another developer that raised the same points.
Those involved in the timeshare industry have stated that the business relies on the Real Estate Commission decision being respected by the courts and that if the timeshare consumers can sue, this could in effect destabilise the industry which could have a real negative effect on South Carolina’s economy. The have also stated that if upset consumers are given the right to sue this could have a negative impact on the consumers who are happy with their timeshare purchases.
If the decision stands, the opinion is expected to allow dozens of lawsuits to proceed.
The concerns of the industry have not been dismissed by the justices and they recognise that there is merit to some of them; however they also state that they must yield to the plain language of a statute that commands a different result.
The American Resort Development Association, a trade group for the industry, said the state’s timeshare act “provides a comprehensive regulatory system which protects consumers and provides substantial oversight through the Real Estate Commission.”
“While we respect the court’s decision and interpretation of the plain language of the statute, we do have concerns that there are established public policy reasons for allowing those in a highly regulated industry to rely on the approvals and authority of the agencies regulating them,”
Hilton Head attorneys Zach Naert and Joe DuBois have said “We’re going to the court,” Naert said Wednesday after he and DuBois pored over the 16-page document. “We know we can do that now. At least this … confirms for anyone who contemplates a lawsuit that they don’t have to go to the Real Estate Commission.
They are, in fact, entitled to file a lawsuit. It looks like a win to me for South Carolina timeshare purchasers.”
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk