SXMElections.com

BEACON HILL--Timeshare owners at Caravanserai Beach Resort have lost the injunction they had filed against the property's new owner, Alegria Real Estate BV, concerning ownership rights.

The Court of First Instance ruled in the injunction on Friday, and stated that Timeshare Owners at Caravanserai Association (TOCA) had no case against Alegria, because association members had not closed timeshare agreements with Alegria or with the former resort owner, but with Endless Vacation NV.

As a result, TOCA was ordered to pay Alegria's legal fees, which were estimated at NAf. 2,229.

During the October 31 hearing of the injunction, filed by TOCA on October 28, the judge had given parties time to come to a solution. As no agreement had materialised and no settlement had been reached, the Court presented its decision on Friday.

The approximately 2,200 timeshare owners claiming timeshare rights at Caravanserai had received a letter on September 30, in which they were informed that their previous ownership rights had been nullified and that Alegria would offer hotel units against payment instead. A November 1 deadline was attached to the offer.

TOCA, which was hastily established on October 27, immediately filed an injunction in efforts to protect their rights.

Following the transfer of Caravanserai to Alegria after a public auction by Scotiabank on August 13, Endless Vacation is no longer involved in Caravanserai Beach Resort, including the hotel and timeshare operations, it was Alegria's opinion.

Alegria, which purchased the resort for US $14 million, further claimed it was not bound by any type of timeshare agreement made through Endless Vacation, and the judge agreed.

Alegria had asserted that it was not responsible, but that it sympathised with the sudden loss of timeshare rights. As compensation, it had offered "a hotel room usage agreement, which would allow usage of a hotel room and facilities at the resort against an annual fee to cover part of the operational cost of the resort."

TOCA members deemed the offer unacceptable and the immediate annulment of clients' timeshare agreements unjust as these would have constituted a breach of contract.

TOCA had demanded that Alegria revoke its letter, admit clients to their units and honour their rights.

Within minutes after the Court ruling against Caravanserai timeshare owners was posted on the owners' Facebook page, angry owners vented their fury.

Owners appeared to blame the island of St. Maarten, charging that government did not protect them and allow them to be victims, as many of them have lost tens of thousands of dollars.

"Manek profited. Caravanserai profited. Endless Vacation profited. Scotiabank profited. Alegria profited. The island of St. Maarten profited by repeat visitors and spending. The only losers were the tourists. Just a horrible blight on the island. How can anyone ever feel the same about it?" one member stated.

Other disappointed timeshare owners stated they would not return to St. Maarten and spend their vacations elsewhere.