[ 2012 ] Fairmont / Sunchaser / Northwynd official thread with lawsuit info!

[Anxiety123]

Contract

I have read carefully what ERW and EvaS had to say about us not winning anything. Well we are now back where we were from the beginning but we have shown Northmont that they cannot be unreasonable and get away with it. There are some owners willing to fight back. I hope that both of you are involved with the fight by putting up your money, as you have benefited from the outcome. Now, my original contract states that if I am to default for more than 16 months, my timeshare week will now be turned over to Northmont and they will calculate an amount that they owe ME. Also I did notice the clause that stated they could unilaterally change contracts for the betterment of the owners but the changes cannot materially prejudice the owners. The changes that Northmont wanted to make would definitely financially hurt many owners. The issue that hurts the most is the vacations that we so enjoyed are now over, this hurts more than any money we could loose. I don't know all the legalities of the dealings Northmont had with Fairmont but I can remember a time when I had some friends come and stay on one of the timeshare weekends. This was during the time the new building of Riverview (I think that is what it is called)was being built. These friends were put up in the buildings close to the Rec Centre. When visiting them I noticed that the staircases were crumbling and the unit was in such disrepair and that I was embarrassed. I thought to myself, why would they be using maintenance money on a new building when these were falling apart. Maybe to make their salesmen and management richer?? When I bought our timeshare, Pat our salesmen, told us that the family that owned the property were good, upstanding citizens of the community and that they had money in trust for any major renovations or issues that could arise. But in the end what they did is make themselves richer and walk away from us owners. Good upstanding citizens they were. I am sure they are still living in the community today happy to have their money out and all the problems not theirs.

So where do we go from here? The only thing I can think of is either follow my contract and just stop paying them and let them have my unit or pay to get involved with the Class Action. Well I have paid the lawyer up until now, will most likely continue and be one that has at least tried!!!

 

[Yukoner]

Anxiety 123. We too have many fond memories of time spent there with friends and family, plus all the trades we made. Our son played junior hockey in Invermere and we were in and out on a regular basis. Despite this recent tomfoolery, our timeshare experience has been a positive one.

One item that I have not seen discussed is the ramifications to the time share industry at large if this were to be a precedent setting case. On one hand it will generate substantial negative press for the time share industry, but unfortunately that will probably be likes water off a ducks back as that industry has certainly weathered a virtual hurricane of bad press and managed to survive quite nicely. On the other hand if Northwynd were to succeed, it could conceivably open every time share owners wallet to the predation of their resort. I can only assume that most time share agreements are similar in form and content, and if so every time share owner could be at risk if Northwynd were to be successful in setting a precedent.

I am thinking that there may be an opportunity to widen the scope in terms of soliciting assistance in our fight if one accepts the argument that this fight affects all time share owners, not just the Sunchaser group. This forum as been very focussed (and informative) about the issues with Northwynd, but probably of passing interest to time share owners at large. If the risk posed by Northwynd setting a precedent is real, then it would be of interest to all time share owners, and worthy of wider dissemination, perhaps by starting another thread that would highlight the risks to all. just a thought.

Last comment: Does anyone know if other Owner/Management companies have tried a similar gambit, or is this truly a Wanker's epiphany, and a one off. If so, what were the results.

 

[fairmontlvr]

If you want to use the week, renting from Interval or RCI is cheaper than the MF even in the summer weeks.

I never did sign up with Interval and thankfully did not opt for the Legacy for Life scam that switched over to RCI. So not being a member of either trading group is not an option.

 

[Anxiety123]

Interval

You just have to purchase a membership with Interval and you can purchase Getaways through them. Have just recently and stayed in a Marriott. Beautiful!

 

[no_more]

"playbook" for unscrupulous timeshare operators

[Last comment: Does anyone know if other Owner/Management companies have tried a similar gambit, or is this truly a Wanker's epiphany, and a one off. If so, what were the results.[/QUOTE]

Northwynd and their predecessor companies have used questionable tactics at their non-Canadian resorts in Belize and Punta Mita, Mexico before they sold them. (jacking up maintenance fees, lack of maintenance, "creative" accounting, special exchange clubs like the platinum club where you pay extra but never can get an exchange, booking the rooms on the side for paying guests when timeshare owners should have priority) I call it the "playbook" for unscrupulous timeshare operators. Easier to do in foreign jurisdictions where its harder to get there and see what's going on, like Mexico.

For Canada, last year I do recall reading some articles about a troubled Ontario timeshare that had a dwindling number of investors and the maintenance fees kept increasing substantially.

Found it - its the Horseshoe resort in Barrie. article follows ...

Horseshoe Resort,
Barrie, Ontario
Problems for timeshare owners at The Lodges at Horseshoe Resort
began shortly after the development was acquired by Skyline International
Development in 2008. Maintenance fees rose over the next three years from $435
to $1,108. According to the management company, the increase was due to
a refurbishment to update the building, increases in wages and legal fees from
the prior lawsuit. At the Horseshoe Resort, owners only need to pay the fee if they are using
the week. After the 2011 fee was announced, 45 percent of the owners
decided not to use their weeks that year, so the other owners were re-assessed an
additional amount to make up for the shortfall, bringing the total to $1,700
per week. When only 18 owners were willing to pay that maintenance fee,
the cost of running the timeshare resort was against reassessed to $27,879.51
per week. The settlement of a class action lawsuit, which had been brought by
owners several years prior to Skyline’s involvement, provided that the developer
is not responsible for maintenance fees on reclaimed weeks.
The Time Share Owners Association (TSOA), representing about 250 of
The Lodges leaseholders, has now filed a lawsuit against
Skyline International Development.
According to Mark Arnold, lawyer for the TSOA, Skyline has now taken over all
of the units and Skyline probably considers it to no longer be a timeshare.
“What we see is a slow but easy way to push people out,”
Arnold said. Skyline has said it is only following the terms of the class
action settlement. If the TSOA wins in court, timeshare
owners will get relief from forfeitures caused as a result of misinterpretation
of the minutes of settlement or a sum of money that is enough to compensate
everyone for what they have lost, Arnold said.
“If Skyline wins, the project is dead and they can do what they want with
it,” he added

 

[DarkLord]

or is this truly a Wanker's epiphany, and a one off. If so, what were the results.

[Post text removed at request of Original Poster. -- Makai Guy, TUG BBS Administrator]

 

[ClanMac]

I am having a hard time getting through a few of the posts that have been placed here over the last two or three days. Anx123 just recently addressed this and I am going to stress even more. What is it you don't get? What have you been reading and what is it you don't understand? THE APPEAL COURT DECISION IS HUGE!!!!! It doesn't just put us back to where we were before the BC Supreme Court decision the appeal was based on, three Judges made it abundantly clear that Northwynd/mont cannot legally proceed with the levy of the RPM or Pay to get out fees without addressing the significant concerns the TS owners have with respect to the validity of the contracts to begin with. This would have to be addressed at trial, and there is overwhelming evidence that irreparable breaches have occurred and continue to take place.

With due respect to Jim B., there is also ample evidence for fraud that would not be hard to prove; rather it has been hard to get the RCMP to commit forensic audit resources to digging through the electronic/paper trail barricades and diversions in order to be certain of an expedient conviction of the specific individuals involved. Accountants, lawyers and Real Estate scammers of this nature are very capable of throwing up a lot of crap; and most clearly in our favour a significant load was already flushed down the proverbial 'loo' by the three Appeal Court judges. I have worked with the RCMP for many years on a number of cases, and have addressed this one specifically with them over more than the past year (Commercial Crimes Unit - Calgary). Their approach is the same. They know fraud and theft is highly likely, however it is more economically efficient to wait until the civil litigation proceedings are well under way; at which time the abundant evidence produced will make it all more evident.

Northwynd is crumbling, unfortunately like the resort they they were obligated to take care of and instead took our money for their own purposes. This organization's death is imminent but they are unlikely to expedite the inevitable by jumping off a cliff with a trial or a ton of small claims procedures.

So please stop trying to spread doubt and insecurity on the basis of what you may not understand. Read carefully and ask questions of the right people you can trust and stop keeping the Northwynd fungus clinging on with the last of it's withering tentacles.

 

[Spark1]

I am having a hard time getting through a few of the posts that have been placed here over the last two or three days. Anx123 just recently addressed this and I am going to stress even more. What is it you don't get? What have you been reading and what is it you don't understand? THE APPEAL COURT DECISION IS HUGE!!!!! It doesn't just put us back to where we were before the BC Supreme Court decision the appeal was based on, three Judges made it abundantly clear that Northwynd/mont cannot legally proceed with the levy of the RPM or Pay to get out fees without addressing the significant concerns the TS owners have with respect to the validity of the contracts to begin with. This would have to be addressed at trial, and there is overwhelming evidence that irreparable breaches have occurred and continue to take place.

With due respect to Jim B., there is also ample evidence for fraud that would not be hard to prove; rather it has been hard to get the RCMP to commit forensic audit resources to digging through the electronic/paper trail barricades and diversions in order to be certain of an expedient conviction of the specific individuals involved. Accountants, lawyers and Real Estate scammers of this nature are very capable of throwing up a lot of crap; and most clearly in our favour a significant load was already flushed down the proverbial 'loo' by the three Appeal Court judges. I have worked with the RCMP for many years on a number of cases, and have addressed this one specifically with them over more than the past year (Commercial Crimes Unit - Calgary). Their approach is the same. They know fraud and theft is highly likely, however it is more economically efficient to wait until the civil litigation proceedings are well under way; at which time the abundant evidence produced will make it all more evident.

Northwynd is crumbling, unfortunately like the resort they they were obligated to take care of and instead took our money for their own purposes. This organization's death is imminent but they are unlikely to expedite the inevitable by jumping off a cliff with a trial or a ton of small claims procedures.

So please stop trying to spread doubt and insecurity on the basis of what you may not understand. Read carefully and ask questions of the right people you can trust and stop keeping the Northwynd fungus clinging on with the last of it's withering tentacles.

This is for all the people that talk negative about how big of a win it was for us that own time at this resort. When people talk negative then i wonder are you a bond owner, or connected to Northwynd/Northmont or confused time owner. I would like to share a website with you so you can see how important it was to win this appeal.
http://www.justanswer.com/canada-law/8ew71-regards-xxxxx-xxxxx-timeshare-40-year-lease.html

We are lucky to have Geldert Law, Jim Belfry and the very informative posters and tug or we could be in trouble with these crooks.

 

[Spark1]

This is for all the people that talk negative about how big of a win it was for us that own time at this resort. When people talk negative then i wonder are you a bond owner, or connected to Northwynd/Northmont or confused time owner. I would like to share a website with you so you can see how important it was to win this appeal.
http://www.justanswer.com/canada-law/8ew71-regards-xxxxx-xxxxx-timeshare-40-year-lease.html

We are lucky to have Geldert Law, Jim Belfry and the very informative posters and tug or we could be in trouble with these crooks.

You will have to reply to my thread to get the proper website or google gordon and judy price renovation fee at the sunchaser resort at fairmont bc and go to this is in regards XXXXX XXXXX timeshare 40 year lease i have

 

[heydynagirl]

You will have to reply to my thread to get the proper website or google gordon and judy price renovation fee at the sunchaser resort at fairmont bc and go to this is in regards XXXXX XXXXX timeshare 40 year lease i have

This is just one of those pre-draft letters from that collection agency. Too bad this couple isn't aware of Michael and the recent overturning of Justice Loo's decision.

 

[DarkLord]

[Post text removed at request of Original Poster. -- Makai Guy, TUG BBS Administrator]

 

[Hotpink]

News Paper Coverage

Notice that the Valley Echo in Invermere has an article on the outcome of the appeal. While we can't read it as we don't subscribe it will be available in the archives in the near future.

How can we get some of our other larger media outlets reporting on this situation which may assist in increasing our class action numbers. Not sure if a letter to the editor is a good tactic or not, but unless we increase our exposure to other investors we may not get a larger number of participants. We know we can't afford to be taking out large ads in any of the daily's.

Open to suggestions

 

[Spark1]

Notice that the Valley Echo in Invermere has an article on the outcome of the appeal. While we can't read it as we don't subscribe it will be available in the archives in the near future.

How can we get some of our other larger media outlets reporting on this situation which may assist in increasing our class action numbers. Not sure if a letter to the editor is a good tactic or not, but unless we increase our exposure to other investors we may not get a larger number of participants. We know we can't afford to be taking out large ads in any of the daily's.

Open to suggestions

I emailed Geldert Law yesterday about the registry. I feel that if Northwynd can give out all our private information so their hit men Sauvageau can harass us knowing that there was an appeal happening some how our lawyers should be able to get a copy of the registry. This is very unfair,we have to use tug,face-book,some news media to inform people but it is impossible to reach everyone. Every time owner has a right to join this Class Lawsuit but because of the system this right is taken away from them. Maybe Geldert Law can use a Federal Judge to force them to give our lawyers a copy. ClanMac would know a lot more about this then I would.

 

[gnorth16]

Global and CTV each did a piece on it. I think they would love to do a follow up on how the little guy won the first battle and where it goes from here.

Get 'r Done!

 

[GarryH]

I emailed Geldert Law yesterday about the registry. I feel that if Northwynd can give out all our private information so their hit men Sauvageau can harass us knowing that there was an appeal happening some how our lawyers should be able to get a copy of the registry. This is very unfair,we have to use tug,face-book,some news media to inform people but it is impossible to reach everyone. Every time owner has a right to join this Class Lawsuit but because of the system this right is taken away from them. Maybe Geldert Law can use a Federal Judge to force them to give our lawyers a copy. ClanMac would know a lot more about this then I would.

Why don't we press Northwynd to establish an owners/lessees association? It's now part of our "in full force and effect" agreements (Clause 19 in my version). Northwynd is obviously in possession of the full list which would be required to canvass all owners/lessees to see if they wanted to participate in the association.

If Northwynd balks, then that's one more piece of ammunition we can use against them. We would have to form an interim association management team up front in order to make the request. Perhaps GL can comment on this tactic.

 

[ERW]

The misconception was people thought the court was going to map out a course of action for Investors to follow. But the court was only asked by Northwynd to approve the levy of reno and cancellation fees. And the court did just that saying no to both reno and cancellation fee.

I am not a lawyer but the way I read this decision is the the Appeals Court has not said no to Northwynd re the reno/cancellation fee but rather said no to the "Special Case" status of this proceeding. Justice Loo's decision was faulty in that she proceeded with this as if all parties were in agreement with the evidence brought forward whereas in actual fact the Owners/Lessees were disputing the contracts which were used as the basis of classifying this as a Special Case. So, in essense, it was the process they overturned. That being said, the actual question of whether or not Northwynd can proceed has not been decided, which would explain why it appears Northwynd is moving ahead.

Have any of the lawyers actually unequivocally stated that the decision forbids Northwynd from proceeding with the reno/cancelation fees? I am thinking that the Northwynd is just going to take the risk of proceeding with their plan and wait to see if someone actually files a lawsuit in which case a full-fledged trial will need to take place to determine the issue.

So as I understand the situation, this is a victory in the sense that Justice Loo's decision was overturned, but there is a long legal road ahead to determine if Northwynds path is legal according to the disputed contracts or not. That long legal road could go on for 3 or 4 years (or more).

 

[DarkLord]

That long legal road could go on for 3 or 4 years (or more).

I agree that this is far from over. The application by Northwynd or our beloved trustee who were supposed to look after our interest to realign the resort still hasn't been heard. If we do nothing, Northwynd with that application can sell off units of the resort that belong to us investors.

For investors who have been ignoring Northwynd up til now, Northwynd can file claims against us on the MF and/or the reno fee in BC court. And individually, you'll have to fly from all over the country to BC to defend your rights. Failure to answer to those suits will lead to judgement against you.

It is high time that for investors who have not done anything to sign up with Geldert Law. A round trip plan ticket and a few nights of hotel to BC will cost you more than the few hundreds you pay for lawyer.

A little bird told me that majority of the investors with Geldert support the class action and it will be a go. We are going to sue Northwynd for damages resulting from their breaching of contract.

If you don't signup with Geldert law, you won't get the award of damages at the end.

 

[aden2]

SOME BACKGROUND ON THE SUNCHASER - NORTHWYND SITUATION
- Including some interesting extracts from the Information Circular to Unitholders

In 2006, several hundred investors bought bonds issued by FRPL Finance Ltd. (“FRPL”), a company that had been established to secure financing for the ongoing development of timeshare properties, primarily Fairmont Vacation Villas, then under the control of Fairmont Resort Properties Ltd. (Fairmont). FRPL offered Investors a premium rate of interest if they undertook to compound their investment by accepting interest in the form of additional bonds, instead of cash. In December 2008, Fairmont could not make the interest payments due to FRPL, which was consequently unable to pay bondholders. In 2009, as a result of Fairmont’s ongoing inability to meet its interest obligations, the Fairmont Group was placed under protection of the Companies’ Creditors Arrangement Act (CCAA).

Quoted from Information Circular to Unitholders of Northwynd Properties Real Estate Investment Trust

“The Trust was formed on March 4, 2010 for the purposes of acquiring and developing vacation resort properties. As a result of a Plan of Arrangement completed by FRPL Finance Limited. (“FRPL”) pursuant to the ABCA on April 22, 2010, the holders of mortgage bonds issued by FRPL exchanged their bonds for Units. This exchange resulted in the mortgage bondholders owning 100% of the issued units of the Trust. Concurrently, and as part of the Plan of Arrangement, the Trust acquired from FRPL certain loans and security interests in Fairmont Resort Properties Ltd. and its subsidiary companies (“Fairmont”), a company operating at that time under the Companies’ Creditors Arrangements Act. Those loans and underlying security interests were valued at $43.8 million.

On April 27, 2010, the Trust submitted a bid to purchase substantially all of the assets of Fairmont in exchange for the cancellation of $43.8 million of Fairmont debt and the assumption by the Trust of certain liabilities of Fairmont and its subsidiary companies. The Alberta Court of Queen’s Bench granted final approval of the Trust’s acquisition of Fairmont’s assets on June 22, 2010 and issued an order vesting title to Fairmont’s assets with Northwynd Limited Partnership (“Northwynd LP”), a limited partnership wholly owned by the Trust. The acquisition was completed on July 7, 2010 at which time certain assets acquired were transferred to three limited partnerships also wholly owned by the Trust.

Subsequent to July 7, 2010, the Trust attempted to stabilize and grow its business with the objective of returning to its Unitholders their $43.8 million in capital initially raised by FRPL. Due to a number of internal and external factors, the Trust’s efforts were not successful and in the fall of 2011, the Trustees determined that alternative options needed to be pursued to maximize Unitholder value. Management was directed to review any and all options including, but not limited to, a recapitalization of the Trust, the sale of some or all of its assets, or its sale.

During 2012, the Trust attempted to complete a transaction with Bridge Gap Konsult Inc. for a sale of all of the outstanding Trust Units. In October 2012, that transaction failed to close and the Chief Executive Officer, Pat Fitzsimonds, resigned from Northwynd Resort Properties Ltd. (the “Administrator”), a corporation wholly owned by the Trust that is responsible for the administration of the Trust.

In November 2012, Kirk Wankel was appointed Chief Executive Officer and the Trustees approved a new business plan focused on maximizing cash generation, selling non-core assets and stabilizing the long-term assets.

Effective December 31, 2012 Northwynd completed a reorganization that resulted in Northwynd LP becoming the Trust’s only directly owned limited partnership and the cancellation of certain intercompany debt.

In April, 2013, Northmont Resort Properties Ltd., a wholly-owned subsidiary of the Trust, embarked on a resort realignment plan (the “Realignment Plan”) for Sunchaser Vacation Villas including participation in a petition in the Supreme Court of British Columbia to validate the Realignment Plan.

In August, 2013, Northwynd entered into a purchase and sale agreement with restructured Equities Ltd. (“REL”) pursuant to which REL agreed to acquire Northwynd LP and the Administrator for total cash consideration of $28.9 million, subject to deduction and adjustment in accordance with the terms of the Purchase Agreement. This transaction was unsuccessful and was terminated by the parties in early September, 2013.

In November, 2013, the Supreme Court of British Columbia after a Special Case held in October, 2013, ordered that the renovation fees and cancellation fees related to the Realignment Plan were valid.

From May, 2013 through May, 2014, the Trust has generated substantial cash flow from cancellation fees related to the Realignment Plan. The cash was used to pay off the $8,150,000 in debt owed to Terrafund Financial Inc. between June, 2013 and January, 2014.

In May, 2014, the Trust sold the assets at Lake Okanagan Resort to a third party for gross proceeds of $9,100,000.

As a result of the asset sales to date, the only material non-cash or receivable assets remaining in the Trust relate to assets in and around Sunchaser Vacation Villas in Fairmont, British Columbia.”

(End of quotation)

In June, 2014, the British Columbia Appeal Court overturned the decision of November, 2013. The decision stated in part: ”In our opinion, the chambers judge’s quest for efficiency overwhelmed her analysis and failed to give proper effect to the Rule and the rights of the time share Owners. This proceeding did not favour access to justice — it precluded it.”

The Trustees have now determined that the termination of the Trust is in the best interests of the Trust and the Unitholders. The Trustees unanimously recommend that the Unitholders vote in favour of the Wind-Up Resolution at the annual and special meeting on July 3, 2014.

 

[DarkLord]

The Trustees unanimously recommend that the Unitholders vote in favour of the Wind-Up Resolution at the annual and special meeting on July 3, 2014.

Thanks, Aden.

Assuming the trust is wound up, who owns the Sunchaser properties? I would image that being the unitholders who probably have lost thousands of the investment in this scam.

 

[ERW]

In June, 2014, the British Columbia Appeal Court overturned the decision of November, 2013. The decision stated in part: ”In our opinion, the chambers judge’s quest for efficiency overwhelmed her analysis and failed to give proper effect to the Rule and the rights of the time share Owners. This proceeding did not favour access to justice — it precluded it.”

The Trustees have now determined that the termination of the Trust is in the best interests of the Trust and the Unitholders. The Trustees unanimously recommend that the Unitholders vote in favour of the Wind-Up Resolution at the annual and special meeting on July 3, 2014.

I'm a little lost here - is the trustee indicated above Macklin? And are the "Unitholders" Northwynd or the lesses/owners? Where does this information come from?

 

[DarkLord]

I'm a little lost here - is the trustee indicated above Macklin? And are the "Unitholders" Northwynd or the lesses/owners? Where does this information come from?

[Post text removed at request of Original Poster. -- Makai Guy, TUG BBS Administrator]

 

[bubbalou]

Show Me The Contract!!!

I purchased my Riverside Timeshare in 1997 and after moving twice since then I can't locate my copy of my contract. I did not purchase the Legacy For Life option when it was introduced. I have asked Northwynd 3x in the last year send me a copy of my signed contract. I also asked them to highlight the section that states where I am responsible for Capital Projects. So far, I haven't received anything back, nor have they sent me a copy of my contract from 1997.

I also asked for this from Sauvageau & Associates over a month ago when I received an email from them to settle this "amicably" - again there was no response.

Today, I received a registered letter from Sauvageau & Associates trying to intimidate me into paying for the reno, interest and legal fees.

 

[DarkLord]

Today, I received a registered letter from Sauvageau & Associates trying to intimidate me into paying for the reno, interest and legal fees.

Bubbalou, Northwynd will not go throught the trouble to find you the signed contract, they probably don't even have it. This is like a mass email scam, send out thousands of letters and see what sticks. Like I mentioned before, this will not stop and Northwynd are planning to file in BC courts for their claim.

If you have not signed up with Geldert law, http://geldertlaw.com/, you should do so now. The money you have to spend to just get to BC will be more than what you're paying Geldert Law for.

 

[bubbalou]

Need People to Get Involved

If you have not signed up with Geldert law, http://geldertlaw.com/, you should do so now.

Thanks DarkLord, I just called Geldert and spoke with Patricia.She said that we still need at least 500 more people to get involved and contact them before July 7, 2014. The risk is that if people stand by and do nothing, then Northwynd may have greater leverage than before.

Don't let apathy be your strategy.

 

[GypsyOne]

Sauvageau & Associates are now sending out Draft Statements of Claim to the timeshare owners by registered mail. They mustn't have gotten the email that their client lost the appeal. The strategy seems to be to shake down as much money as possible while they can - by intimidation if necessary. Northmont failed to get the court's affirmation they sought that they can charge for the renovation and the cancellation fees. Yet they continue to act as if they have full legal authority. They are skating on very thin ice.

This gang will not stop until they have full court authority to take over your bank account to fund reconstruction of their resort for their benefit with your money. That must not be allowed to happen. Get on board with one of the lawyers to go the next step.

The early indication of the survey is that nearly everyone realizes what is at stake and are doing the right thing. Because we are a large group, the costs to date have been surprisingly low. There is strength in numbers. To do nothing is to lose.