Updated 10/2009
Informational
Instruction # 1
WHAT
ARE MY
OPTIONS REGARDING THE PROPOSED RCI WEEKS “CLASS” ACTION LAW SUIT?
By now, many of you will have received the e-mailed or postcard “Notice
from
the Administrator” regarding your rights in the RCI Weeks litigation.
If you
believe you are a member of the “class” and have not received a
personal notice
there is notice available at RCI.com. [To access the link to that
notice do not
log-in to the site. Logging in (as of the date of this instruction)
will
prevent you from seeing the link. The link is at the bottom right hand
side of
the site and is easily missed unless you scroll down.]
What are your alternatives?
• You can do nothing. If you do not submit a claim
form, you will not be
entitled to one of the individual benefits the current settlement
offers to
“class” members. However, you will automatically be a member of the
"class," and you will receive the general benefits under the proposed
agreement if the agreement is accepted by the judge.
• You can accept one of the “benefits” offered by
RCI in the proposed
settlement without objecting.
• You can “opt out” of the “class” (which would
preserve your individual
right to bring a separate lawsuit against RCI.)
• You can object to the proposed settlement (This
option allows you as
an Objector to accept one of the benefits offered while also objecting.)
Informational
Instruction # 2
WHAT
DO I DO IF I WANT TO
OBJECT TO THE PROPOSED SETTLEMENT?
The Court will consider the proposed settlement agreement at a Fairness
Hearing
to be held on November 30, 2009 before the
presiding judge, the
Honorable Peter J. Sheridan. The Notice you should have recently
received from
the “class” administrator is the result of the initial objections to
the prior
notice by some of the objectors who appeared at the initial Fairness
Hearing on
June 16, and who successfully argued that the Notice which appeared on
page 94
of the March/April edition of Endless Vacation magazine
(which many RCI
members did not see) was inadequate notice of the lawsuit settlement.
If you are a “class” member, you can object to the settlement if you
don’t like
any part of it. You can give reasons why you think the Court should not
approve
it. However, reasons for your objection are not required. If you choose
to give
reasons the Court will consider your views.
• You can represent yourself, or you can elect to be represented before
the
court by an attorney.
• You
do
not have to be represented by Counsel to file an objection.
Informational
Instruction # 3
What
is the downside if I object to the proposed
RCI “class” action settlement?
Last week I contacted my attorney, Susan B. Collins and put the
following
question to her:
What are the risks of objecting to the RCI proposed “class” action
settlement?
Her written response is as follows:
Dave, as I see it, the risks of objecting are these:
1) Many members fear that RCI will retaliate against Objectors. On
September 9,
at the negotiations, RCI executives assured us that no retaliatory
measures
would be taken against objectors, and that they recognize that doing so
would
not be acceptable business practice. I specifically brought to their
attention
the fact that several years ago, I apparently "complained too hard"
about a change in RCI's policies regarding bonus weeks issued for
highly
desirable deposits (including writing a letter to the CEO), and that
RCI did
retaliate against me, in that I received a call from woman who claimed
that an
exchange I had made with a bonus week was improper, and she canceled
the
confirmed exchange. I specifically told the executives that RCI members
were
concerned that RCI could lower the value of their existing deposits.
They
responded that there simply is no way to lower the value of an existing
deposit. We then pointed out that the value of many deposits were
lowered in
the "recent unpleasantness" at the end of May, but an RCI VP assured
us that that was a software glitch and was being corrected, and that
trade
power had been restored for most people, and that the restoration would
be
completed for everyone soon. (This "glitch" should have been
corrected by now.) Despite these assurances, some skeptical RCI members
may
also find comfort in the fact that there is "safety in numbers," and
that the more people who object, the harder retaliation would
[theoretically]
be.
2) If enough people object, the proposed settlement could be rejected
by the
judge. The Plaintiffs' attorneys tell us that they believe that this
would be
very much against the interests of RCI members. On the other hand, they
really
believe that the settlement answers most members' concerns, which is a
position
with which many members disagree, some vehemently. Some objectors have
expressed grave concerns that no discovery was conducted, and question
how effectively
the attorneys could have negotiated without knowing the full extent of
RCI's
practices. (Plaintiffs’ attorneys claim that an order issued by the
prior judge
-- who has since retired -- prohibited them from conducting discovery.)
Plaintiffs' attorneys have also expressed reluctance to try to the
case, and
have implied that they could find an alternative, such as settling on
behalf of
the named Plaintiffs individually. In that event, there might be no
class
action suit and no current or future restrictions placed on RCI, unless
another
action is brought. However, it is also possible that the judge would
frown on
such a tactic or that if RCI members were able to find another attorney
or firm
to represent the class, the action might be continued, or a new action
might be
brought. It is a risk, however, that each member should consider when
deciding
whether or not to object. In other words, is the proposed
settlement of
sufficient value that risking it’s not being implemented is a serious
concern?
(It is also interesting to note that apparently the Plaintiffs'
attorneys, at
least, seem to consider it possible that the objectors will succeed in
having
the proposed settlement rejected by the judge.)
Signed: Susan B. Collins
Informational
Instruction # 4
You
Have Decided To
Object What’s Next?
To object you must send a letter saying that that you object to the
settlement
in In re: Resort Condominiums
International LLC, Civil Action No.
06-cv-1222 (PGS).
Be sure to include the class member’s name, address, telephone number,
RCI
Weeks Exchange Program Identification Number, Resort Identification
Number,
Resort Name and the signature of the "class member" or authorized
representative if the "class member" is a trust, corporation, or
other entity.
You can provide specific objections and the basis supporting your
position; but
providing specific objections or the reasons for your objections is not
a
requirement it is optional. If you provide specific
objections and the
reasons for them the Court will consider your statement.
Informational
Instruction # 5
Frequently
Asked
Questions:
Is
there
a simple form that I can send in to object?
Sending your objection to the Clerk of Court is exceptionally easy. A
generic
form letter has been provided within Informational Instruction # 6.
[I apologize in advance regarding the alignment of the text of the
form. It was
created in MS Word 2007 and for some reason certain things such as the
placement of the Date did not line up when transferred to this site.]
Yep, it really is that easy just fill in the blanks and mail it with
copies to
the two individuals shown at the bottom of the form. One of the
recipients of a
copy will be the Co-Lead Class Counsel and the other gentleman is
Defense
Counsel.
What
is
the difference between objecting and excluding?
Objecting is telling the Court that you don’t like something about the
settlement. You can object only if you stay in the “class.” Excluding
yourself
is telling the Court that you don’t want to be part of the “class.” If
you
exclude yourself, you have no basis to object because the case no
longer
affects you.
Does
a
Member of the “class” who chooses to object to the settlement require
an
attorney to represent the “class Member?”
No! Absolutely not, you can simply object by sending
your objection in
writing. There is no requirement that you be represented by an
attorney.
What
are
the deadlines?
• If you wish to object to the Settlement, you must send your objection
to the
Clerk of the Court, Co-Lead Class Counsel and Defense Counsel so that
it is postmarked no later than November 20, 2009.
• According to the Administrator's post card "The Court will determine
whether to approve the Settlement at a Fairness Hearing on November 30,
2009 at
2:30 p.m. at the United States District Court, 402 East State Street,
Trenton,
New Jersey 08608."
• If you wish to submit a claim the following shortcut will take you directly
to the site where the Claim Form is available: HERE
I
own
more than one RCI affiliated resort, do I have to list all the resorts
that I
own which are affiliated with RCI.
No, only one Resort Name and Resort Number is to be
listed even if you
own more than one.
Informational
Instruction # 6
What follows
is a generic form letter that you can use as a guide, feel free to
cut/paste the following into your own word processing program (MS Word
etc).
Clerk of
Court
Date: ____________
United States
District Court for the District of New Jersey
402 East
State Street
Trenton, N.
J. 08608
RE: In re: Resort Condominiums
International, LLC
I
_________________________________________object to the
settlement in In re: Resort Condominiums
International, LLC,
Civil
Action No.
06-cv-1222 (PGS)
REASONS
FOR
OBJECTION
(OPTIONAL):
Signed:
______________________
_________________________
Name(s):
_____________________
_________________________
Address:
_________________________________________
City:
___________________ State
_____ Zip Code ____________
Telephone: _________________ RCI
Weeks Account #:____________
Resort
ID #:_______
Resort
Name:_________________________
Cc: David C. Berman Cc: David S. Sager, Esq.
A
Professional Corporation
DAY PITNEY LLP
P.
O. Box 111
P.
O. Box 1945
Morristown,
N. J. 07963 -0111
Morristown, N. J.
07962-1945
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