Laskey v. Bluegreen Vacations Unlimited, Inc.

CourtDistrict Court, W.D. Missouri
DecidedFebruary 28, 2024
Docket6:22-cv-03194
StatusUnknown

This text of Laskey v. Bluegreen Vacations Unlimited, Inc. (Laskey v. Bluegreen Vacations Unlimited, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laskey v. Bluegreen Vacations Unlimited, Inc., (W.D. Mo. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MISSOURI SOUTHERN DIVISION

SHAUNDRE LASKEY, et al., ) ) Plaintiffs, ) ) vs. ) Case No. 6:22-cv-03194-MDH ) BLUEGREEN VACATIONS ) UNLIMITED, et al., ) ) Defendants. )

ORDER

Before the Court is Plaintiff’s Motion for Partial Summary Judgment (Doc. 98) and Defendants’ Motion for Summary Judgment (Doc. 101). The motions are fully briefed and ripe for review. For the reasons set forth herein, Defendants’ Motion is granted and Plaintiffs’ Motion is denied. BACKGROUND Plaintiffs originally filed this action on September 18, 2018, in Missouri state court. Plaintiffs filed a Motion for Class Certification which has been fully briefed and is also pending. Plaintiffs’ Motion for Partial Summary Judgment addresses Class Counts I, II, and III of Plaintiffs’ Third Amended Petition, alleging violations of RSMo. § 484.010 et seq., unauthorized practice of law, violations of RSMo. §407.010 et seq., Missouri Merchandising Practices Act (hereinafter “MMPA”), and money had and received. Plaintiffs allege under Missouri law, Defendants Bluegreen Vacations Unlimited, Inc. (“BVU”) and Resort Title Agency, Inc. (“RTA”) charged fees for preparing legal documents and therefore engaged in the unauthorized practice of law. Further, Plaintiffs allege the unauthorized practice of law necessarily triggers consumer protection under the MMPA and gives rise to common law claims of money had and received. Plaintiffs move for summary judgment on these class claims. Defendants also move for summary judgment on Plaintiffs’ class claims arguing that they did not charge fees for the preparation of legal documents and that Plaintiffs have failed to submit evidence of any such fee. As a result, Defendants contend Plaintiffs’ class claims fail and judgment

should be entered in favor of Defendants. In addition, Defendants move for summary judgment on Plaintiffs’ individual claims. Defendants argue any such claims are foreclosed by the contracts that Plaintiffs executed and Plaintiffs have failed to submit evidence in support of their individual claims. FACTS Plaintiffs’ lawsuit arises out of Bluegreen Vacations Unlimited’s marketing and selling of timeshare interests. Plaintiffs claim BVU sells “vacation points” that can be used as currency to stay at resorts within the Bluegreen Vacation Club (“Club”) network. Defendants contend they do not sell vacation points, but instead sell vacation ownership interests (“VOIs”).

When BVU sells a Club interest, the purchaser does not receive legal title or a deed to an identified unit within the Club network. Instead, BVU deeds a “unit week” to Vacation Trust, Inc. (“VTI”) pursuant to its trust agreement and awards the purchaser vacation points based on the unit week’s assigned value. Defendants do not deny that the purchaser does not receive legal title or a deed. Defendants contend Plaintiffs executed an Owner Beneficiary Agreement (“OBA”) and in doing so purchased a real property interest—specifically, a timeshare estate— in Unit 2503H/28O at Paradise Point Resort, 250 Lakewood Drive, Hollister MO 65672. Plaintiffs were also allocated 7,000 biennial vacation points. The parties disagree on the description of the “timeshare interest” but it is undisputed Plaintiffs did not receive a deed or any legal title to the described Unit. Instead, Plaintiffs became beneficiaries of the Trust and the property was deeded to the Trust. The property, or “underlying inventory or the timeshare interest,” is titled and owned by VTI as a trustee. The Unit cited by Defendants is held in the trust and Plaintiffs, as purchasers or “owners,” are given certain beneficiary rights pursuant to the trust. The beneficiaries were given

vacation points to use at Bluegreen properties. As part of the transaction with a purchaser, BVU has an arrangement with RTA in which the VOI purchaser pays $350 to RTA for coordination of the VOI closing, title, and escrow services. BVU presents the VOI purchaser with an Affiliated Business Arrangement Disclosure Statement that states: “you are NOT required to use Resort Title Agency, Inc. as a condition for settlement of your loan or purchase or sale of the subject property.” It is the $350 fee that is the subject of Plaintiffs’ class claims. Plaintiffs contend the fee represents money paid for the preparation of legal documents and therefore supports their claims for unauthorized practice of law, consumer protection under the MMPA, and common law claims

of money had and received. Defendants dispute that the fee relates to documentation preparation or the practice of law. Defendant RTA, who the $350 fee is paid to, is a wholly owned subsidiary of Bluegreen Corporation and provides closing services for BVU. RTA does not provide title, escrow, or closing services to the general public. RTA’s title searches involve internal review of BVU’s timeshare inventory. Defendants state RTA title searches are not limited to internal reviews and covers reviews of chain-of-title involving inventory obtained from third-party properties. However, the record does not reflect any evidence of third party properties that it would have reviewed. After a purchaser completes an OBA the Defendants’ computer application automatically assigns available inventory to individual purchase agreements. BVU staff does not know which piece of timeshare inventory will be assigned to an agreement prior to printing. The documents utilized in connection with the sales are standardized and information for each sale is filled into the documents based on the information gathered. The various documents used to effect the sale

of VOIs and associated financing, and policies and agreements governing rights and obligations under those documents are standardized. The information gathered in each sale is included in a form or document, including information particular to the purchaser (such as personal identifying information), the property being purchased, and the applicable price, costs, and fees. BVU staff in the sales centers input the particularized customer and transaction information that is used to complete various contract documents. RTA then uses that information to facilitate the execution and recording of deeds by Bluegreen/Big Cedar Vacations, LLC and Vacation Trust, Inc. based on the information. Individual claims

On March 29, 2014, the Laskeys visited the Bluegreen Wilderness Club at Big Cedar Lodge resort near Branson, Missouri and attended a group presentation. Ms. Laskey testified that, during the group presentation, she was told the timeshare would be a great investment, that the price of hotels in the future would be very expensive, you could basically go anywhere in the world, you could reserve that spot at any time you wanted to, and you wouldn't have to worry about that expense. Ms. Laskey also testified that she was told the timeshare would be a great investment because it could be passed down to their children. Mr. Laskey also testified that he was told it would be a great investment, and that he could pass it down to his children. Ms. Laskey states after the group presentation, the Laskeys had an individual meeting where she was told “we would be able to pass this on to our kids, and their kids, and it would be a great investment for our family.” On March 29, 2014, the Laskeys initially received and executed a Purchase Proposal, filled in by hand, which disclosed an itemized list of “PURCHASE TERMS,” which included a $350 “Closing Cost.” That same day, the Laskeys executed an Affiliated Business Arrangement

Disclosure Statement, which explains that unless the purchasers preferred to use another provider, RTA would provide “settlement services” and would charge $350 for those services.

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