James Smith and Kathleen Smith v. Westgate Resorts, Ltd.

CourtDistrict Court, M.D. Florida
DecidedMarch 31, 2026
Docket6:25-cv-00189
StatusUnknown

This text of James Smith and Kathleen Smith v. Westgate Resorts, Ltd. (James Smith and Kathleen Smith v. Westgate Resorts, Ltd.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James Smith and Kathleen Smith v. Westgate Resorts, Ltd., (M.D. Fla. 2026).

Opinion

UNITED STATES DISTRICT COURT : MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION JAMES SMITH and KATHLEEN SMITH, Plaintiffs, Vv. Case No. 6:25-cv-189-JA-LHP _

WESTGATE RESORTS, LTD., □ Defendant.

ORDER This case is before the Court on the Motion for Sanctions (Doc. 23) filed under Federal Rule of Civil Procedure 11(c)(2) by Defendant, Westgate Resorts, Ltd. Having considered the history of the case and the arguments presented in the parties’ filings and at two hearings, the Court concludes that Westgate’s motion is due to be denied but that sanctions against attorney John P. Abrams and The Timeshare Law Firm, L.L.C. are warranted under Rule 11(c)(8) on the Court’s own initiative. I, BACKGROUND In 2016 Plaintiffs, James and Kathleen Smith, purchased a timeshare interest from Westgate while vacationing in South Carolina. The interest the

Smiths purchased pertained to a resort in Williamsburg, Virginia. Having become unhappy with their purchase, the Smiths engaged The Timeshare Law Firm, L.L.C. (Timeshare) to sue Westgate. In January 2025, Timeshare lawyer Stephanie Parsons filed this lawsuit in a Florida state court, asserting thirteen claims.! (Compl., Doc. 1-1). The Complaint sought rescission of the Virginia purchase as well as compensatory and punitive damages. (See id.). In early February 2025, Westgate removed the case to this Court. (See Doc. 1). Westgate then filed a motion to dismiss (Doc. 12), which it amended on February 24, 2025, to, among other things, include a certification under Local Rule 3.01(g) that Timeshare opposed the relief requested, (see Docs. 15, 16, & 17). On March 10, 2025, Parsons filed a Response in Opposition (Doc. 19) to the amended motion to dismiss, arguing against dismissal of the Smiths’ claims. Four days later, on March 14, 2025, Westgate filed the Motion for Sanctions

1 The thirteen claims asserted were: negligent misrepresentation (Count 1); fraudulent misrepresentation (Count 2); negligent concealment of public offering statement (Count 3); fraudulent concealment of public offering statement (Count 4); negligent concealment of successor liability (Count 5); fraudulent concealment of successor liability (Count 6); violation of the Real Estate Settlement Procedures Act (RESPA) (Count 7); violation of the Dodd—Frank Wall Street Reform and Consumer Protection Act (Count 8); negligent misrepresentation and “intentionally negligent” concealment of licensure (Count 9); violation of Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA) (Count 10); concealing the arbitration clause and mitigation limitation clauses (Count 11); violation of the Florida Timeshare Act (Count 12); anda claim for attorney’s fees, costs, damages, and punitive damages (Count 13). (See Doc. 1-1).

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(Doc. 23) that is now before the Court.? In the sanctions motion, Westgate argues that this case is one of 60. frivolous and “time-barred, cookie-cutter lawsuits” filed by Timeshare in Florida. (Doc. 23 at 1). According to Westgate, every substantive claim in the Complaint is factually frivolous, legally frivolous, or both, including claims that attack a nonexistent arbitration clause, seek relief under inapplicable federal law, and improperly rely on Florida law. (See Doc. 23). Parsons responded in opposition to Westgate’s motions for sanctions on March 24, 2025. (See Doc. 27).3 The Court heard oral argument on the motion for sanctions (Doc. 23) and the amended motion to dismiss (Doc. 17) on April 22, 2025. (See Mins., Doc. 36; Tr., Doc. 40). Parsons appeared for Timeshare. During oral argument, it quickly became clear that Parsons had no relevant experience, that she was working alone with no guidance, and that she was filing complaints as directed by John P. Abrams—the owner of Timeshare—using a template. Parsons

2 As required by Rule 11(c)(2), Westgate had served Parsons with a copy of the motion on February 20, 2025—three weeks before filing it. (See Doc. 23-10). When Parsons did not amend or withdraw the Complaint within the twenty-one day safe- harbor period provided by the rule, Westgate filed the motion with the Court. 3 As discussed at oral argument, the response (Doc. 27) Parsons filed was largely copied from a response to a motion for sanctions filed by another law firm in the Southern District of Florida in an unrelated case. (See Tr., Doc. 40). Parsons changed a few details and deleted a few others, but the response was essentially a fill-in-the- blank effort. And as she did at oral argument, in her response Parsons relied on the local rules for the Southern District of Florida instead of those for the Middle District of Florida.

conceded that the Complaint was a shotgun pleading but argued that many of the claims in it were justified because she had heard the same stories from timeshare owners over and over, concluding that “where there’s smoke, there’s fire.” (See Doc. 40 at 19). Parsons’ argument in defense of the asserted claims confirmed what was evident from her filings—she was unfamiliar with the Federal Rules of Civil Procedure and the Local Rules of the Middle District of Florida. It also became clear that in filing complaints for Timeshare, Parsons—a lawyer licensed in Florida—was acting more as a filing clerk than as a lawyer. Her job was to fill in the names of the parties on the template and file the complaints, and that is what she did. Parsons was the only lawyer working for Abrams on January 9, 2025,4 when she signed and filed this lawsuit in state court on behalf of Timeshare. Parsons’ only legal experience before working with Abrams was as a small-town lawyer practicing family law. She had no experience in timeshare law and had never filed an appearance in federal court. When Parsons began working for Timeshare in July 2024, Abrams told her “to start moving the cases and filing.” (Doc. 40 at 66); see also Long v. Westgate Resorts, Ltd., No. 6:24-cv-2112 (M.D.

4 Parsons stated that there may have been two remote Timeshare attorneys that she had not worked with, although she spoke to one attorney “on the phone a few times” and exchanged “a couple emails” with him. (Doc. 40 at 68).

Fla.) (Doc. 46 at 16 (Parsons stating at show-cause hearing before another judge in this division on July 25, 2025, that she and Timeshare “filed numerous complaints because .. . the firm was drastically behind and these clients needed help, and [Parsons] thought that’s what [she] was doing”)). Following instructions, Parsons prepared complaints using the Timeshare template. She was able to satisfy Abrams’ demands by filing 60 complaints during her first six months with Timeshare. She accomplished this feat by filling in the blank spaces on the template without conducting even the most minimal investigation. (See Doc. 40 at 67-68); see also Long, No. 6:24-cv-2112 (Doc. 46 at 15). Each lawsuit that Parsons filed asserts the same thirteen claims with the same language as the Complaint in this case. (See Doc. 45 & exhibits thereto). Parsons explained that she believed the template she had been provided was “correct,” so she just “filled in the blanks.” (Doc. 40 at 59, 68); see also Long, No. 6:24-cv-2112 (Doc. 46 at 15). She followed that fill-in-the-blank practice in preparing the Complaint she filed in this case. After oral argument on Westgate’s motions, the Court issued an order to show cause to Abrams, offering him an opportunity to explain why sanctions should not be imposed against him ‘and Timeshare based on the pursuit of frivolous claims in this Court. (See Order, Doc. 37). On May 6, 2025, Abrams appeared at a show-cause hearing and gave a lengthy, self-serving description

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Bluebook (online)
James Smith and Kathleen Smith v. Westgate Resorts, Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-smith-and-kathleen-smith-v-westgate-resorts-ltd-flmd-2026.