Mungovan v. Wyndham Vacation Resorts, Inc.

CourtDistrict Court, D. Minnesota
DecidedJune 16, 2025
Docket0:25-cv-00061
StatusUnknown

This text of Mungovan v. Wyndham Vacation Resorts, Inc. (Mungovan v. Wyndham Vacation Resorts, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mungovan v. Wyndham Vacation Resorts, Inc., (mnd 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

Libby Mungovan and Case No. 0:25-cv-61 (KMM/DJF) Andrew Mungovan,

Plaintiffs, ORDER v.

Wyndham Vacation Resorts, Inc.,

Defendant.

Defendant Wyndham Vacation Resorts, Inc.’s (“Wyndham”) moves to dismiss the First Amended Complaint (ECF 10 (“FAC”)), or alternatively to transfer this action to the United States District Court for the Western District of Wisconsin. Def.’s Mot., ECF 19. For the reasons that follow, the Court grants Wyndham’s request for a transfer. I. Allegations and Procedural History This case involves allegations of deception and fraud in the sale of a timeshare. Libby and Andrew Mungovan (collectively, “Plaintiffs” or “the Mungovans”), live in Minnesota and traveled to the popular resort area of Wisconsin Dells, Wisconsin in 2022. FAC ¶¶ 4, 9. They stayed at Wilderness Resort, a hotel complex operated by Wyndham. Id. ¶ 10. The Mungovans were enticed with the offer of 30,000 “Wyndham Reward Points” to attend what was billed as a 90-minute sales presentation about membership in the “ClubWyndham Access Vacation Ownership Plan.” Id. ¶¶ 9–10. The ClubWyndham program is a timeshare program, and at the sales presentation, attendees were told that ownership in the program was an “‘investment that will appreciate in value,’ that it is ‘a

legacy you can leave to your children as part of your estate,’ and that it will provide their children with ‘vacations for life,’ or words to those effects.” Id. ¶ 11. The Mungovans were ultimately pitched on a timeshare interest in Wyndham’s Glacier Canyon Resort, also in Wisconsin Dells. Id. ¶ 13. They were informed that their interest would grant them timeshare points that they could use each year to stay at Glacier Canyon or any Wyndham resort. Id. After touring some facilities at Glacier Canyon, the

Mungovans were informed of the cost of this timeshare interest. Id. ¶¶ 14–15. The cost was too high for the Mungovans, but a Wyndham sales representative then offered a reduced price and an increase in annual timeshare points if the couple committed to their purchase that same day. Id. ¶ 17. That is exactly what the Mungovans did. By now several hours into what was originally expected to be a brief sales pitch, the Mungovans were ushered into a

room and asked to read and agree to a timeshare contract on a computer screen. Id. ¶¶ 18– 20. The FAC describes the contract review as being rushed, and the couple ultimately signed. Id. ¶¶ 20–21. They received a USB drive and a folder containing 1,608 pages of documents, characterized as being the paperwork that they had just signed, but which the Mungovans allege they later discovered were entirely different documents. Id. ¶ 21.

The troubles began once the Mungovans returned home to Minnesota. There, they allege that they discovered numerous problems with their timeshare membership, including higher-than-expected payments and an inability to find time-share availability at Wyndham properties other than Glacier Canyon. See, e.g., id. ¶¶ 22–23, 26–28. While in Minnesota, the Mungovans allege that they received a phone call from a Wyndham representative, asking them to spend more money to attain “VIP” membership in the Wyndham timeshare

program because doing so would alleviate the availability issues they had been struggling with. Id. ¶¶ 24–25. They declined this offer. Id. ¶ 25. In 2023, the Mungovans again traveled to Wisconsin Dells, this time staying at Glacier Canyon while using their membership points. Id. ¶ 29. The Mungovans were enticed into another 90-minute sales presentation, this time with the promise of $175 to use at the resort during their stay. Id. Hoping to use the presentation as a way to voice their

dissatisfaction with aspects of their membership and seek solutions, the Mungovans instead found themselves on the receiving end of another hard sell. Id. ¶ 30. The Mungovans were paired with a sales agent, who expressed concern and surprise at the problems they had experienced and assured them that he could improve their experience while also better educating them about the perks and limitations of their membership. Id. ¶ 32. The

Mungovans allege that the sales agent then made numerous promises about “fixing” their membership, which involved “upgrad[ing] into a new, even more expensive timeshare, which would yield additional ClubWyndham points” and improved access to stays, but through a complicated set of maneuvers would also result in lower payment costs. Id. ¶ 35. The Mungovans were then asked to quickly review and sign a new timeshare contract,

which they did. Id. ¶ 37. But according to the Mungovans, the new contract did not fix their problems with the timeshare program. Rather, upon returning to Minnesota, the Mungovans discovered that things were now worse in several ways. First, they allege that unbeknownst to them, “Wyndham had charged a $7,500.00 down payment onto two new, high-interest, Wyndham-branded credit cards that were issued to [the Mungovans] for that purpose and

then maxed out.” Id. ¶ 38. Second, their monthly payments did not go down, but instead “shot up from $257.72 to $466.00, and their monthly ‘maintenance fee’ nearly doubled, from $76.42 to $142.60.” Id. ¶ 41. And third, there was no improvement in the availability of resort stays. Id. The Mungovans got a lawyer. Id. ¶ 42. They began putting their monthly timeshare program payments into escrow. Id. They tried to initiate arbitration with Wyndham based

on language in their contract. Id. ¶ 43. Wyndham, in turn, issued a default notice and terminated their membership. Id. ¶ 44. Wyndham also allegedly falsely reported the Mungovans as being delinquent debtors and “called [them] incessantly about the account, even after [the Mungovans] told them that the debt was dispute[d] and directed them to their legal counsel.” Id. ¶¶ 45–46. The Mungovans’ arbitration efforts also then failed,

allegedly because Wyndham is barred from arbitrating timeshare disputes with the American Arbitration Association due to a “failure to abide by [its] rules.” Id. ¶¶ 43, 45. This lawsuit followed. On January 7, 2025, the Mungovans filed their complaint with this Court. ECF 1. On February 24, 2025, and before Wyndham’s response, the Mungovans amended their

complaint. ECF 10. Based on the foregoing factual allegations, the FAC asserts seven causes of action: (1) violation of the Wisconsin Time-Share Ownership Act, Wis. Stat. Ch. 707 et. seq; (2) violation of Wisconsin’s Deceptive Trade Practices Act, Wis. Stat. § 100.18 et. seq.; (3) violation of the Wisconsin Prize Notices Statute, Wis. Stat. § 100.171; (4) Violation of Wisconsin’s Unfair Trade Practices Statute, Wis. Stat. § 100.20 et. seq. and Wis. Admin. Code, Ch. ATCP 127, et. seq; (5) fraud; (6) unjust enrichment; and

(7) Violation of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq. On March 11, 2025, Wyndham filed the pending motion to dismiss. ECF 19. Wyndham seeks dismissal under Fed. R. Civ. P. 12(b)(3) for improper venue. See generally ECF 13 (Mem. in Supp. of Mot. to Dismiss). Alternatively, Wyndham seeks discretionary transfer to the Western District of Wisconsin pursuant to 28 U.S.C. § 1404(a). See id.

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