In a recent development, a Tennessee federal judge has granted a partial victory to Diamond Resorts, a hospitality real estate company, in its legal battle with timeshare exit firm Wesley Financial Group LLC. The judge, U.S. Magistrate Judge Debra C. Poplin, ordered the parties to determine the amount of attorney fees owed by Wesley Financial Group due to the delays caused in the case.
One of the key factors contributing to the delays was an error made by Wesley Financial Group in sharing a list of its customers with Diamond. However, Judge Poplin declined to impose further sanctions on Wesley, stating that the firm did not intentionally provide Diamond with inaccurate customer data. While the mistake caused a significant delay in the court process, the judge deemed it unintentional.
Additionally, there was an "attorneys' eyes only" protective order granted to Wesley in July 2021. This order allowed Wesley's counsel to withhold certain court documents from their clients, citing the need to protect client confidentiality. However, Judge Poplin clarified that once clients ceased working with Wesley, the protective order no longer applied to them.
Diamond Resorts sought restrictions on the protective order, as it hindered its ability to identify Wesley customers who could potentially serve as witnesses to the exit firm's alleged false advertising. Judge Poplin acknowledged that Wesley was at fault for such delays, but emphasized the firm had not intentionally mislabeled the customers.
This ruling highlights the importance of accurate and timely information sharing in legal proceedings. While mistakes can occur, it is crucial for all parties involved to diligently address and rectify any errors to ensure a fair and efficient resolution of the case. Timing is everything in timeshare disputes.
Read more about the dispute and ruling here.