When addressing the question of terminating U.S timeshare contracts, the British consumer is required to consider the law, they intend to rely upon to obtain – when the legal termination work starts.
To explain; the U.S. Constitution is the highest law in the United States under its authority and it establishes a federal system of government which shares power between the federal government and the many state governments. These systems of government both have their own laws court systems and operate within different jurisdictions.
The following are the characteristics and differences between a federal and a state court. Federal courts only handle cases listed in the U.S constitution. Such cases include cases in which the United States of America are a party in the case and the case involves violations of the U.S. Constitution or federal laws between citizens of different states (if the amount in question exceeds $75,000 and cases that involve bankruptcy, copyright, patent and maritime law).
Article III, section 1 establishes the Supreme Court and gives it the power to set up other lower courts. Federal courts are also said to prosecute professional crimes like wage theft, fraud, bribery, Ponzi schemes, insider trading, labour racketeering, embezzlement, cybercrime, copyright infringement, money laundering, identity theft, forgery, bringing illegal drugs into the country or across state lines and use of the U.S. mails to swindle consumers.
Federal courts also have exclusive jurisdiction on federal crimes like customs offences, offences involving federal tax matters and crimes of espionage and treason.
This said federal courts are often too expensive for private individuals to pursue civil matters in because they do not have parallel small claims procedures.
The constitution and the laws governing each state establishes state courts and they usually officiate over common law disputes. The State courts apply their respective state laws, procedures and judicial precedent in their state hierarchy and to decide cases. They also apply federal laws where needed.
Some states have an intermediate court of appeals, state trial, circuit or district courts. Some states also have courts that handle specific legal issues like probate court (wills and estates), juvenile court and family court.
In light of the above, federal and state courts differ in terms of jurisdiction, the appointment of judicial officers, structure and caseload.
In cases of a conflict between any federal and state law, the United States Constitution and federal laws supersede state laws. State laws are not subordinated to federal law; rather they are corresponding courts with different but overlapping jurisdictions. They both have separate sovereignty, although with the federal court having overriding effect in case of a clash.
In a matter of consumer and timeshare resorts, the issues in many cases are the consumer is British, the timeshare seller could be Panamanian, the club is domiciled in say California and the resort are located in Florida. Which – in part – complicates reasoned consideration.
The issue an advisor faces is – who perpetrated the wrong for which the consumer will rely upon to terminate the contract they are obligated to.
If the seller misrepresents the product within the confines of the sales presentation and that event took place in Florida, the offence was perpetrated in Florida and redress will be actioned in Florida.
Should the Californian club failed to deliver the promised benefits, the issues well be argued in California.
It is not for the British consumer to elect the jurisdiction of the case as the consumer generally challenges the contract, break the terms of the contract, and refuse to pay any more money and if pursued, they are the defendant.
In any breach of contract, the party who suffers from the breach has the right to be compensated for the loss incurred and will be the plaintiff (U.S). This explained, the claimant will have to prove the breach was contrary to the terms and as a consequence of the breach loses have been incurred.
The test to be used in determining this is applied by the Jurisdictional laws were the parties agreed the dispute will be heard. This is case-specific.
If you win the case, the matter is concluded however, should you lose, a judgement will be entered, and the award will be made and collectable within the jurisdiction, it was ruled in. As this is a civil matter it will not affect your rights to holiday in the state and you should not have immigration problems as; it is a civil case – not a federal issue.
If you have a property in the state where the judgment is made, the creditor can instigate measure to have your asserts taken, sold and to discharge the debt you owe, however, the costs in doing this is expenses and its unlikely to be actioned if claims less than $10,000,
If you have no assets in the state and the Plaintiff can’t set off the registered debt by sale of assets, the creditor’s options are to either ‘right of the debt’ or pursue you in the English Courts. To do this expeditiously, a money treaty has to exist between say the UK and the state/country in which the debt was incurred. The UK has a treaty with the federal government but does not have any treaties with the state governments accordingly, the creditor is required to issue further proceeding in the High Court in London and if they want to enforce a debt in the UK.
Should they do this, you have the right to challenge the application and assert your rights in the form of a reply to the application. Again, this is costly for the creditors and on balance and to date I know of no creditor who has tried this approach as the money won is generally less than the costs that will be incurred.
I all matter of exiting/terminating U.S timeshare, each consumer needs sound advice and in every case, this cannot be provided by people who have little understanding of the U.S law.
Posted on: 26th July 2019