Manhattan Club Lawsuit

You are kidding, aren’t you. What in heavens name would the cdc or hhs have to do with a hotel reservation. I would think they have more important issues to deal with.

We intend to contact the Zimmerman law group and join in the lawsuit action against TMC. As with so many other TMC owners the ongoing, incredibly high, maintenance fees have become a serious financial problem for us. Does anyone have any feedback from those owners that have stopped paying the annual maintenance fees?

Chris, thanks for your reply and reminding me of the 72 hour rule. My contract for the year runs May 10- May 10, so perhaps I can reschedule and make it in May.

I think the point Chris is making is that this is a dire health emergency situation (I'm 68 with underlying conditions, though otherwise very healthy), and this is what the powers that be are recommending....that we don't travel, esp to NYC. If TMC doesn't honor this then there could be repercussions.

I remember reading from other forum posters in the past, that when they quit paying their fees, and then TMC tried to ruin their credit by reporting them, once the member contacted the credit bureaus and told them what was going on and about the suit, their credit was restored.

chrisv126 wrote:

deborah s,

as i recall, you can cancel a reservation (i believe) 72 hours prior to the beginning of the reservation. notwithstanding that "rule" and under the dire circumstances surrounding the coronavirus, demand that they let you cancel or postpone your reservation. in the worst scenario for you, threaten them saying you will report them to the CDC AND/OR THE DEPT OF HEALTH AND HUMAN SERVICES.

I just spoke to reservations about canceling my April 3rd and April 16th and 17th dates. This was on March 14th, 2020 in the morning hours. My year ends April 29th, 2020. My husdand was very recently diagnosed with small cell lung cancer. Therefore his immune system is severely compromised and told by his doctors not to travel to NYC. We live across the river in NJ and would be driving.I asked if I could receive an extension for these 3 days going into my next usage year of April 2020 to April 2021.. If I can't I would loose them. We've been members since 2003 and are in good standing. The woman said she could not, but the 3 day cancellation time line is waived. We can cancel up to the morning of our reserved date. She also said that this could change and to check back again. But this blew my mind. She compared this to 9/11 and said they didn't extend the days back then. This is far more serious then 9/11 and under my husbands lung cancer circumstance it's totally different.

deborahs528 wrote:

Chris, thanks for your reply and reminding me of the 72 hour rule. My contract for the year runs May 10- May 10, so perhaps I can reschedule and make it in May.

I think the point Chris is making is that this is a dire health emergency situation (I'm 68 with underlying conditions, though otherwise very healthy), and this is what the powers that be are recommending....that we don't travel, esp to NYC. If TMC doesn't honor this then there could be repercussions.

I remember reading from other forum posters in the past, that when they quit paying their fees, and then TMC tried to ruin their credit by reporting them, once the member contacted the credit bureaus and told them what was going on and about the suit, their credit was restored.

chrisv126 wrote:

deborah s,

as i recall, you can cancel a reservation (i believe) 72 hours prior to the beginning of the reservation. notwithstanding that "rule" and under the dire circumstances surrounding the coronavirus, demand that they let you cancel or postpone your reservation. in the worst scenario for you, threaten them saying you will report them to the CDC AND/OR THE DEPT OF HEALTH AND HUMAN SERVICES.

I would call and will call all the NYC news channels if this postponing is not honored for me and my husband. I'll also be be touch with Mr. Zimmerman.

hello melody,

my past experience with contacting NYC news channels have produced no results, although it might be worth another attempt on your part. i would strongly recommend considering consulting with attorney zimmerman.

for your convenience.................

his email address is... JMZ@ZIMLLP.COM

other contact options:

Jean-Marc Zimmerman Zimmerman Law Group 233 Watchung Fork Westfield, NJ 07090 TELEPHONE: (908) 768-6408, FAX: (908) 935-075

melodyp46 wrote:

I would call and will call all the NYC news channels if this postponing is not honored for me and my husband. I'll also be be touch with Mr. Zimmerman.

Thank-you Chris. I intend to contact. Attorney Zimmerman ASAP. I'm beyond livid.

hello again melody,

sorry to say, the (false) value your, OUR, shares at TMC have been artificially fixed---by TMC; its worth is $0.00 for THEIR purposes. of course, if you deed your share (i.e., relinquish it) back to TMC, and once they own your hard-earned investment, the value of your share, now owned by TMC/BLUEGREEN, changes to a realistic value of a NYC luxury accommodation as follows:

as a hotel, about $4-600 per night; as a timeshare sale, between $70 to 90,000 per week, according to the accommodation, just like magic, n'est pas? we remain victims of a mega-criminal fraud and sham, and TMC/BLUEGREEN run merrily to the bank.

perhaps with solid legal representation, we could possibly be victorious against these scheming fraudsters.

I checked availability w booking.com this week and found Jr Suites available for $132 + tax. All the hotels were cheap. Also we are members of RCI and make reservations through them for our home base, TMC. There was lots of availability at TMC now and in the months ahead - a rarity, indeed.

hello drusillam2,

hotels sites like booking.com, hotels.com, et al. are wholesalers and work on volume. ergo, they can substantially discount an accommodation based on that premise. TMC makes them aware of vacancies (even though, in many cases, owners have paid their maintenance fees) that bona fide owners in good financial standing don't or can't use. so all of the hotel sites and TMC do very well financially---no surprise to say the least. TMC's financial records continue to flourish, a continuation of the fraud thrust upon us owners.

is there any question that TMC fixes the value of our shares at $0.00 for OWNERS until we relinquish our shares back to TMC? AT THAT PRECISE POINT, the value of our shares rises dramatically and exponentially in favor of TMC. eventually, TMC will no longer need the hotel sites to fill vacancies. they will have cornered the market at OWNERS' EXPENSE. TMC will most likely continue to use the hotel sites when and if it profits them in case of unexpected vacancies.

additionally, i believe some owners may list their TMC time with the hotel sites to help defray the maintenance fee costs, while giving up their accommodation time. that's another win-win situation for TMC and the hotel sites.

OWNERS, THE FRAUDULENT BEAT GOES ON. WE NEED TO DEMONSTRATE A LEGAL SHOW OF FORCE TO STOP THIS CONTINUOUS THIEVERY AND FRAUDULENT ACTION ON THE PART OF TMC, NO MATTER WHO CURRENTLY OWNS IT. WE HAVE A LAW FIRM COMMITTED TO OUR CAUSE. YOUR CONSIDERATION TO JOIN OUR LAWSUIT IS STRONGLY RECOMMENDED AND ADVISED.

ATTORNEY ZIMMERMAN'S CONTACT INFORMATION FOLLOWS: (fyi, i have joined attorney zimmerman's lawsuit vs TMC/EICNHER/BLUEGREEN.)

his email address is... JMZ@ZIMLLP.COM

other contact information:

Jean-Marc Zimmerman Zimmerman Law Group 233 Watchung Fork Westfield, NJ 07090 TELEPHONE: (908) 768-6408, FAX: (908) 935-0751

(making this recommendation is strictly my opinion and decision. it has not been prompted by anyone within the legal community. it simply seems to make sense as a formidable manner of countering TMC'S continuous attack on owners' financial well-being.)

drusillam2 wrote:

I checked availability w booking.com this week and found Jr Suites available for $132 + tax. All the hotels were cheap. Also we are members of RCI and make reservations through them for our home base, TMC. There was lots of availability at TMC now and in the months ahead - a rarity, indeed.

for the interest of TMC all owners---

click on or copy/paste and read the following:

https://casetext.com/case/tucker-v-manhattan-club-timeshare-assn-inc

the following partial paragraph from tucker's case is salient and of special importance and interest to owners' stance vs THE MANHATTAN CLUB TIMESHARE---

..."The complaint requests injunctive relief (i) mandating the Timeshare Association to permit Tucker to inspect and copy the member list; (ii) barring the Association from violating the terms of an agreement resolving an antifraud enforcement action brought by the state Office of the Attorney General; (iii) barring the Association from facilitating the buyback of any timeshare interest from an Association member for less than its initial purchase price; (iv) barring the Association from permitting Bluegreen to access the Association's member list. (Id. at 15.)..."

the assumption here is that the $0.00 value of OUR SHARES appears to be falsely ascribed by TMC. in reality, the value of our shares is what we originally paid for them plus the real estate value that has accrued over the years since our initial purchase.

Hopefully Jean Zimmerman can unshackle all of us from their unaffordable Maintance Fees. All I want is the money I paid for it back in 2005. I found this article hidden deep within redweek forum

Bluegreen purchase ushers in new era, MAYBE, for longtime owners The five-year legal saga at the embattled Manhattan Club entered a new chapter on June 22 when Bluegreen Vacations, a public timeshare company based in Boca Raton, FL., announced that it had finalized "an exclusive agreement" to buy the club's inventory and management contract by 2021.

That's compelling news for all TMC owners who have been caught in a legal limbo, since July 2014, when the New York Attorney General secured a court order to shut down the club's timeshare operation and freeze club assets. The AG's investigation was triggered by complaints from owners who could not secure reservations, claimed they were misled by sales people, and were outraged over the steady spike in maintenance fees, which now approach or exceed $3,000 a year for a single week of usage. Many owners also discovered, to their horror, that they could not sell — or give away — their timeshare intervals.

Background on the NYAG case: the New York Attorney General conducted an undercover sting operation at the club in April and May of 2014 to investigate the club's sales practices. Posing as potential buyers on three separate occasions, AG investigators secretly recorded sales pitches that, months later, became the smoking-gun fulcrum of the AG's case against the Manhattan Club's developer, Ian Bruce Eichner, several relatives and interlocking companies. The AG claimed that the Manhattan Club's sponsors deliberately misled the club's 15,000 or so owners — owners who paid upwards of $400 million, dating back to 1996, to own a small chunk of the Big Apple. Based on the AG's findings, a New York judge shuttered the timeshare operation and froze bank accounts pending a continuing civil and criminal investigation. That mid-summer 2014 court order launched a legal battle between the AG and Eichner, a high-profile Manhattan developer with Trumpian tastes for building big buildings in famous places — Miami, Las Vegas, Manhattan — that consumed three years of legal motions and millions of dollars in legal fees.

On Aug. 16, 2017, both sides called it quits, opting for a complicated settlement instead of more legal maneuvers about legal fees, depositions and related motions. Under a press release headline that said, "A.G. (Eric) Schneiderman Announces $6.5 Million Settlement with Midtown Manhattan Timeshare that Scammed Purchasers," the state declared victory in a case that was never litigated in court. In addition to paying restitution to owners who were unable to use their timeshares between 2010 and 2014, the Eichners agreed to be "barred from the timeshare industry" and promised to sell their stakes in the club to a third-party purchaser, relinquish control of the club and remove all sponsor-appointed officers from the Manhattan Club timeshare association.

"The owners of the Manhattan Club lured thousands of timeshare buyers with false promises and shady sales tactics that violated New York law," said then-AG Schneiderman (who recently resigned amidst a sex scandal).

While rank-and-file TMC owners celebrated the AG's announcement, they and their lawyers soon discovered what they perceived as holes in the settlement. The restitution program was never spelled out in detail and, to our knowledge, no owners have reported receiving a single cent in paybacks for their troubles. The settlement agreement also gave the Eichners three years to sell the club. Because of that compromise decision, the club is still being managed, day to day, by Eichner associates. Eichner still controls the board, too. Many owners who initially applauded the AG's settlement now feel that they were shortchanged. (To see a litany of owner comments, review RedWeek's forum on the Manhattan Club Lawsuit).

Enter Bluegreen: White Knight or Just Another Timeshare Company? Bluegreen's surprise announcement was a huge morale booster, initially, for TMC owners. Bluegreen Vacations CEO Shawn B. Pearson hailed the purchase agreement as "a milestone moment for Bluegreen. The Manhattan Club has always been a favorite destination for our owners." He also said Bluegreen plans to open at 2,500-square foot sales center (at the club) as part of its ongoing expansion into high-profile vacation destinations.

Pearson said nothing, however, about what Bluegreen plans to do with TMC's existing owners. His office and PR staff also declined to respond to repeated requests from RedWeek for additional information about Bluegreen's takeover of the club. (Industry experts who are familiar with Bluegreen expect the company to roll out a conversion option, at some point, that would enable Manhattan Club owners to join Bluegreen's timeshare club and, perhaps, resolve their existing usage and maintenance fee issues with the Eichner management team).

Here's what we know: According to its annual report, Bluegreen became a public company in November 2017. It runs a point-based timeshare operation for 212,000 owners who have access to 43 Bluegreen resorts and 24 associate resorts. In addition to providing vacations, the company also manages resorts. Bluegreen, which entered the timeshare business in 1994, is 90 percent owned by BBX Corporation, a Florida-based holding company. Bluegreen Vacations has partnerships with Bass Pro Shops and the Choice Hotels chain and reported $668 million in revenue for 2017.

Bluegreen is also no stranger to the 286-unit Manhattan Club. In fact, it's already onsite. According to legal documents filed in the AG's case, Bluegreen signed a sales and marketing agreement with the Manhattan Club in 2010. Since then, it has acquired at least 414 intervals that are reserved for Bluegreen Club members and paid more than $2 million in annual maintenance fees and taxes to TMC. The Manhattan Club is listed as a "club associate resort" on Bluegreen's website. At one point in the AG's lengthy litigation, the AG asserted that TMC's relationship with Bluegreen, and RCI, "limit the amount of inventory available to Manhattan Club owners."

Other legal documents filed in the NYAG's case show that the Eichners owned 2.31 percent of all TMC intervals in 2013, down from 3.37 percent in 2012. These are the units, presumably, that the Eichners must sell pursuant to their settlement agreement with the NYAG.

Lawyers Preparing New Federal Lawsuit against Current TMC Sponsors While outsiders ponder Bluegreen's future outreach to TMC owners, a new legal team is preparing a federal lawsuit against the Eichners that is designed to provide financial relief to owners who think they are entitled to compensation and/or just want out of their TMC ownership. One way to accomplish both goals, the lawyers said, is to liquidate the Manhattan Club, sell the property, and distribute pro-rata proceeds to owners. While no one has provided an estimate of the building's worth, a nearby hotel property, called The Quin, just sold to the Hilton Grand Vacations timeshare company for $175 million.

Lawyers Jean-Marc Zimmerman and Steven M. Hoffberg are experienced Manhattan litigators who handle complex commercial cases and, on several occasions, have sued very large banks on behalf of their clients. While not ready to expose all details of their legal strategy, they are relying on information and filings from the AG's case, including the settlement agreement, where the Eichners "stipulated" to many findings of fact.

"Our goal is to help people who want to get out from under the burden of their membership and, in a best-case scenario, get their purchase money back," Zimmerman told RedWeek. "It is clear, based upon the AG's findings, that owners were defrauded and deliberately misled about the intervals and rights they purchased in the Manhattan Club. The lack of demonstrable compensation for owners, even in view of the NYAD discontinuance (settlement) agreement, shows the need for new tactics."

The lawyers are already lining up clients and seeking retainers of $1,250 each which, they said, would be refundable from the proceeds of the litigation. To proceed in court, they hope to sign-up several hundred clients so, in their words, "the Eichners can't outspend us."

What's Next? A key part of the Zimmerman-Hoffberg strategy is attacking the TMC Timeshare Association Board (controlled by the Eichners) for allegedly breaching its fiduciary duties to owners while continuing to pay the onsite management company (New York Urban Ownership Management, also controlled by the Eichners) approximately $6.5 million a year for running the club. That fee, ironically, is the same amount that the Eichners agreed to set aside for restitution to injured owners. The Urban company has had an automatically renewing three-year contract with the board since 2010.

The Manhattan Club HOA board held its annual meeting on August 9. In a packed meeting room, several owners challenged the cost of their maintenance fees while others inquired about the Bluegreen buyout. Bluegreen sent four representatives to the session. They provided a general overview of Bluegreen's point-based travel club, but did not give definitive answers about how they will manage TMC — or deal with the dozens, if not hundreds, of owners who have already signed up on a waiting list to get rid of their timeshares. RedWeek spoke with several owners afterward who expressed confidence about starting a positive relationship with Bluegreen. Others said they look forward to converting their Manhattan Club ownerships into Bluegreen travel club memberships.

RedWeek interviewed two-dozen Manhattan Club owners during a recent stay at the club. Some were happy owners who knew nothing about the AG's case. Others were bitter that the legal saga took so long and (in their eyes) ended up providing so little to owners. A third group was irate about their maintenance fees, which are now higher than a non-owner would have to pay to rent a Manhattan Club suite for a week from an online travel agency (hotels.com, etc.).

One thing they all agreed upon: the once-proud Manhattan Club, despite a loyal staff and great location, is a tired and dated hotel that needs a brand-new start.

hello gary,

"... the once-proud Manhattan Club, despite a loyal staff and great location, is a tired and dated hotel that needs a brand-new start."

that concept is thought-provoking. however, i doubt that bluegreen will offer "...a brand-new start" without a brand new rise in maintenance fees if, in fact, they continue to operate TMC as a timeshare instead of a hotel. bluegreen's track record appears to be questionable.

copy and paste the following reviews from bluegreen customers. keep scrolling for an eyeopener. be sure to click "next" at the bottom of each scrolled page.

https://www.consumeraffairs.com/travel/bluegreen.html?#sort=top_reviews&filter=none

I did just speak to attorney Zimmerman. He answered my call on a Saturday and answered all my questions. He sent an agreement via email. I suggest calling him and asking about the goals of the lawsuit.

Hi I enquired to join the law firm and would have liked to do so, but unfortunately for me I became unemployed last October and cannot afford their fees.

I just received in the mail from the Better Business Bureau of NY a check for $173.21 supposedly for the Manhattan Club Restitution Payment for maintenance made in 2018. Accordingly its says its the second payment but I never received the first payment. Has anyone else received checks from the Better Business Bureau ? I am not cashing it until I speak to the lawyer who I will call tomorrow.

Hi. I received a cheque about a month ago for $36 but as I live in Australia I could not cash the cheque as it had to be cashed within 60 days and Australia require 90 days to clear an international cheque. So I don't know if it was a scam or not

I also received this check(Better Business Bureau issued)with an accompanying letter from Louis Solomon of the NY AG office,and had the same question as you.I sent him an email(his address was on his letter). He replied as follows: "There are numerous people that received a check for their share of the second payment but were not part of the group that received a check for a portion of the first payment" He then said-"attached is the settlement agreement from August 2017 ...which includes the criteria for the various payments". Such agreement was attached,but I didn't wade through it. Richard

the seriousness of the issues surrounding the coronavirus is all-encompassing and must be treated as a major priority. we are currently totally thrust into all of its negative effects and nuances. however, our previous problems have not disappeared nor evaporated, e.g., the TMC fraud.

of course, the TMC problem should take a definitive back seat to the current coronavirus issue, but we shouldn't dismiss it completely. for many of us owners, our financial health has been diminished by the TMC fraud. this is less debilitating than physical health, an immediate priority. but, as time and urgency permit, we should not forget about the TMC problem. the TMC issue, like the coronavirus disaster, will not disappear without consistent vigilance and working toward the elimination of both insidious situations.

be well, stay well!!

I too received checks for the second payment but not the first. I own seven nights in the penthouse and a split week in the one-bedrooms. I actually got two checks, I guess one for each with the penthouse being a larger check.