Thompson v. Wyndham Resort Dev. Corp.
| Decision Date | 23 March 2022 |
| Docket Number | 4:21-CV-3305 |
| Court | U.S. District Court — District of Nebraska |
| Parties | GERALD THOMPSON and CYNTHIA JOHNSON, Plaintiffs, v. WYNDHAM RESORT DEVELOPMENT CORPORATION and WORLDMARK, a Nonprofit Mutual Benefit Corporation, Defendants. |
GERALD THOMPSON and CYNTHIA JOHNSON, Plaintiffs,
v.
WYNDHAM RESORT DEVELOPMENT CORPORATION and WORLDMARK, a Nonprofit Mutual Benefit Corporation, Defendants.
No. 4:21-CV-3305
United States District Court, D. Nebraska
March 23, 2022
MEMORANDUM AND ORDER
John M. Gerrard, United States District Judge
The plaintiffs, Gerald (Jerry) Thompson and Cynthia (Cindy) Thompson (née Johnson), allegedly entered into a contract, and later an addendum to that contract, with the defendants, Wyndham Resort Development Corporation (WRDC) and WorldMark, with the understanding the defendants would provide travel-related benefits and privileges. Filing 11 at 1-2; see filing 18-4 at 1-6; filing 18-5 at 1-7. The Thompsons allege, however, that many of the representations made by the defendants about the travel benefits were false, and as a result, they were denied access to the very travel accommodations which had induced them to enter the agreements. Filing 11 at 5-7. Consequently, the Thompsons brought suit, claiming breach of contract, fraud, and violations of the Nebraska Time Share Act. Filing 11 at 7-8. WRDC and WorldMark have moved to dismiss, arguing the Court lacks personal jurisdiction. Filing 16. For the following reasons, the Court agrees and will grant the defendants' motion.
BACKGROUND
Jerry is an 80-year-old veterinarian residing in North Platte, Nebraska. Filing 21 at 2. Cindy is his 75-year-old wife. Filing 21 at 2. In December 2017, Jerry and Cindy travelled to Las Vegas, Nevada to attend the National Finals Rodeo. Filing 21 at 2. In the lobby of their hotel, Cindy approached a booth hoping to purchase tickets to a jousting event. Filing 21 at 3. A woman offered Cindy tickets to the event and a free dinner if she and her husband agreed to listen to a presentation. Filing 21 at 3. The Thompsons agreed and were taken to another Las Vegas motel. Filing 21 at 3.
Once they arrived, the defendants' employees allegedly subjected the Thompsons to high-pressure sales techniques. Filing 21 at 1, 3. For example, after the main slideshow presentation ended, the Thompsons thought they were free to leave; instead, they were allegedly asked to speak with an older gentleman who had already purchased a membership and a "lady in a uniform." Filing 21 at 4. According to the Thompsons, they were unable to refuse because the bus that had transported them to the presentation was not leaving and they did not know how to get back to their hotel. Filing 21 at 4.
During this conversation, "Jerry understood them to say that Jerry and Cindy could stay at Wyndham motels in locations throughout the United States for no other payment or a big discount and that they could go on trips including an Alaska cruise." Filing 21 at 4. The Thompsons also claim that the employees assured them their children and grandchildren could use the travel benefits to stay at qualifying hotels in Nebraska, filing 21 at 4, as could Jerry when attending veterinary conferences around the state. Filing 21 at 5. Overall, they were promised "it was easy to use the Wyndham benefits under
the contract." Filing 21 at 6. This meeting allegedly went on for almost three hours. Filing 21 at 5.
Ultimately, the Thompsons decided to sign a membership agreement and made a payment. Filing 21 at 6; see filing 18-4 at 1-6. Jerry was unsure of how the payment was made, but later learned he had signed a credit card application form and another form opening a PayPal account. Filing 21 at 6. And from January 12, 2018 to March 2, 2018, the Thompsons allegedly paid the defendants over $45, 000 pursuant to the membership agreement. See filing 11 at 3-4; filing 21 at 6. Eventually, the Lincoln County Court in Nebraska entered a default judgment against Jerry for money owed on the credit card account that he was allegedly unaware of opening. Filing 21 at 6.
In March 2018, the Thompsons returned to Las Vegas and "stayed at a Wyndham hotel for 2 days thinking they could use [their] points or discounting . . . at that hotel." Filing 21 at 7. They allege that while at the hotel, they were again approached by someone trying to sell them travel and lodging benefits. Filing 21 at 7. Since they already had a membership, the woman allegedly offered to help them understand their contract and get more benefits. Filing 21 at 7. The Thompsons claim to have agreed only because she "was quite insistent" and "made them feel like they couldn't walk away." Filing 21 at 7.
At the meeting, which again lasted approximately three hours, the woman explained to the Thompsons that they could upgrade their membership. Filing 21 at 7. According to the Thompsons, they agreed to do so because the woman made it sound like "what they already signed wasn't that great of a deal" and "it wouldn't help them with the travel and lodging that they wanted to do in Nebraska." Filing 21 at 7. As a result, the Thompsons
signed another agreement and paid another $25, 000. Filing 21 at 7; see filing 18-5 at 1-5. In addition to upgrading their membership agreement with the defendants, the Thompsons also executed a membership agreement with a separate travel benefits program called "WorldMark by Wyndham My Savings." See filing 18-5 at 6-7.
The Thompsons were allegedly charged over $1, 200 for their March stay at the Wyndham hotel in Las Vegas despite their initial membership agreement, the subsequent upgrade, and reassurances during the booking process that their membership benefits would be applied to the costs of the hotel. Filing 21 at 8. According to the Thompsons, they were also unable to arrange an Alaskan cruise for the summer of 2018, as had been assured by the defendants, because of barriers put in place by the defendants. Filing 21 at 8. After having issues claiming their benefits, the Thompsons made many calls to WRDC from their home in North Platte, but none of their calls were returned. Filing 21 at 8. And the Thompsons claim that they haven't stayed at any Wyndham motels in Nebraska because "Wyndham motels don't seem to acknowledge that Jerry and Cindy have any rights under the agreements that they signed." Filing 21 at 9.
As a result, the Thompsons filed suit against WRDC in the District Court of Lincoln County, Nebraska, alleging breach of contract, fraud, and violations of the Nebraska Time Share Act. See filing 1-2. After WRDC successfully removed the action to this Court, see filing 1, the Thompsons amended their complaint, adding WorldMark as a party. See filing 11. The amended complaint alleges that the travel benefits purchased by the Thompsons were provided
jointly by WRDC and WorldMark.[1] See filing 11 at 7-9. The defendants have now moved to dismiss the complaint under Fed.R.Civ.P. 12(b)(2), arguing the Court lacks personal jurisdiction. Filing 16.
STANDARD OF REVIEW
When jurisdiction is challenged on a pretrial motion to dismiss, the nonmoving party need only make a prima facie showing of jurisdiction. Pangaea, Inc. v. Flying Burrito LLC, 647 F.3d 741, 745 (8th Cir. 2011); see Fastpath, Inc. v. Arbela Techs. Corp., 760 F.3d 816, 820 (8th Cir. 2014). The evidence is viewed in the light most favorable to the plaintiff. Viasystems, Inc. v. EBM-Papst St. Georgen GmbH & Co., 646 F.3d 589, 592 (8th Cir. 2011). Nonetheless, if the defendant controverts or denies jurisdiction, the plaintiff still carries the burden of proof. See Fastpath, 760 F.3d at 820; Dairy Farmers of Am., Inc. v. Bassett & Walker Int'l, Inc., 702 F.3d 472, 475 (8th Cir. 2012)...
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