A state judge in Charleston seeks guidance in a complicated real estate case that steps on state law. Subsequently, he permits the pertinent legal enquiries to the S.C. Supreme Court in Columbia for an official evaluation and response.
As the verdict arrives, the timeshare advocates from Myrtle Beach to Hilton Head Island are worrying of the outcome.
The justices approved 4-0 that timeshare buyers can sue timeshare sellers in South Carolina over abuses of a 1978 law formed to regulate the industry.
Complaints were made by the companies named in the legal row, that such grievances could be dealt with by the S.C. Real Estate Commission, not judges and juries.
A study from last year by Ernst & Young whom are commissioned by the American Resort Development Association International Foundation, stated the industry fuelled $2.4 billion in expenditure state-wide in 2015. Likewise, it accounted for more than 19,000 jobs, $818 million in wages, and $130 million in tax revenue.
In a December statement was released in conjunction with the findings. “Timeshare is a vital component of the Myrtle Beach area tourism industry,” said Myrtle Beach Area Chamber of Commerce CEO Brad Dean. However, the pitching and promoting of holidays consisting of annual week-long holidays at sun baked destinations also has created its share of complaints and legal scrapes.
A recent dispute involved Spinnaker Resorts Inc.’s Bluewater by Spinnaker on Hilton Head. A couple who after having paid around $26,000 for a share of an 86-unit property, sued the developer in Charleston in 2015. Claiming the seller hadn’t registered the compulsory documents under the S.C. Vacation Time Sharing Plans Act when the deal completed. The couple are looking for a full refund and the contract to be declared null and void.
The case was adjourned by U.S. District Court Judge P. Michael Duffy stating he needed time to clarify some legal points involving state matters before pursuing the federal lawsuit refusing Spinnaker’s request for dismissal. At his request, the Supreme Court approved to “certify” three questions about the S.C. Real Estate Commission’s authority in enforcing the timeshare law. The justices also expanded their investigation to include litigation concerning another developer that raised the identical concerns.
Therefore, is was agreed that timeshare buyers in South Carolina could take their grievances to court. Clearly this was not good news for the timeshare developers in and decision that lawsuits could be brought against them was not the outcome they had been hoping for.
They continued to declare that “the vitality of the timeshare industry relies” on the Real Estate Commission’s decisions “being respected by the courts,” and that if buyers can sue, the “industry will be destabilised, which will result in negative impacts on the entire South Carolina economy,” according to the Supreme Court opinion.
It was also argued that “allowing disgruntled purchasers to institute judicial proceedings will threaten the property rights of those that wish to maintain their timeshare interests.”
The justices recognised that “there is considerable merit” to the industry’s apprehensions and stated that “we do not reject them lightly.”
“However valid … they must yield to the plain language of a statute that commands a different result,” they concurred.
The appointed attorney for Spinnaker’s refused to comment or confirm whether the Hilton Head timeshare company will ask the Supreme Court to reconsider.
If the ruling stands, it is expected to see dozens of lawsuits to proceed. It marked a triumphant win for Hilton Head attorneys Zach Naert and Joe DuBois, who filed the Spinnaker complaint and others on behalf of timeshare buyers.
“We’re going to the court,” Naert said 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