Timeshare owners challenge Coral Resorts in federal court
A Georgia couple have filed a federal complaint that alleges fraud and unfair trade practices by Coral Resorts, a Hilton Head Island timeshare company facing more than 30 similar lawsuits in state court.
Paul and Rebecca Chenard own timeshares at the company's Island Links Resort and Port O'Call at Shipyard Plantation, according to the complaint. The company also runs Coral Reef and Coral Sands resorts on Hilton Head.
The couple were misled during sales presentations and signed contracts that did not reflect what they were told, the suit says. They allege salespeople made false promises, such as an extra annual week of vacation.
They have paid more than $25,000 and owe thousands more, according to the suit filed Tuesday in U.S. District Court.
The couple seek more than $75,000 in damages.
Attempts Friday afternoon to reach an attorney for Coral Resorts were unsuccessful. The company has not responded to the suit, according to federal court records.
In state court, Coral Resorts has denied these claims. Attorneys have said there are thousands of customers pleased with their experience.
Joe DuBois, an attorney for the timeshare owners, said in an email that the couple "look forward to pursuing their case in court."
DuBois, who represents clients in 33 lawsuits against Coral Resorts, declined to discuss why the newest complaint was filed in federal court as opposed to state court.
Next month, a judge is scheduled to rule on more than 50 motions in 16 of the state cases. Those motions include requests by the company to dismiss the cases and requests by timeshare owners for summary judgment. Seventeen others are headed to arbitration, according to court records.
The lawsuits have been shrouded in secrecy since the first was filed in 2012.
A review of court records and a transcript of state Real Estate Commission meetings shows an extensive and effective effort by Coral Resorts' attorneys to keep secret once-public information related to the suits.
Some sealed documents include business records that map the internal structure of Coral Resorts; its properties; its property-management company, Reba Management; and its sales and marketing company, Sunrise Vacation Properties Ltd.
Other sealed documents include a transcript of a commission hearing on Jan. 23, 2013, that could prove contracts signed by owners were invalid, according to their attorneys.
That transcript also includes sworn testimony from Hilton Head Island Mayor Drew Laughlin, who is an attorney for Coral Resorts. He testified that punishing the business would hurt the island's economy.
The transcript has been sealed by two courts and a state regulatory body.
Last month, The Island Packet and The Beaufort Gazette received the transcript from an unknown, anonymous source and published it, believing it is a public document that the public has a right to see.
DuBois and his law partner, Zach Naert, have filed a motion that asks Circuit Judge Ernest Kinard to rule whether they can use the published transcript in court.
That motion is pending, according to court records.
Follow reporter Dan Burley at twitter.com/IPBG_Dan.
Related content:
- Timeshare owners speak out against Coral Resorts, Aug. 2, 2014
- Coral Resorts lawsuits advance; hearing scheduled for September, Aug. 16, 2014
This story was originally published August 24, 2014 at 6:38 PM with the headline "Timeshare owners challenge Coral Resorts in federal court."