Recently, five time-share owners of New York City-based location filed a lawsuit against their property’s developer, owner and operators.
The time-share owners claim that these parties were guilty of fraud and breached an implied covenant of good faith and fair dealing at their property, The Manhattan Club.
The plaintiffs claim the club’s management crew “fraudulently create and maintain the impression that access to and beneficial use of timeshare units in The Manhattan Club is completely or almost completely limited to timeshare ownership interests.” However, the time-share owners are routinely denied access to their property, even if they put in a request nine months to a year early, the lawsuit states.
The suit further explains that the defendants “intentionally and fraudulently engage in the continuous and unconscionable practice of overselling the occupancy capacity of the 286 time-share units by renting them throughout the year to the general public” through internet-based travel sites, such as Expedia.
According to Crains New York, owners have paid between $10,000 and $53,000 for use of their units, depending on size and type.
The case highlights the importance of fair business dealings, lest a company be sued and enter an expensive legal battle regarding professional liability.
